Ras Al Khaimah Residential Market Performance H1 2026
1
Executive Summary Ras Al Khaimah’s economy remained broadly supportive during H1 2026, with continued investment, business formation and employment growth supporting residential demand. The emirate attracted AED 771.5 million in new investment, while 967 new businesses joined the Ras Al Khaimah Chamber of Commerce. RAK Economic Zone’s commercial employment also increased during the period, while the trade balance improved to AED 3.08 billion. These developments point to continued underlying economic resilience, although higher inflation and regional geopolitical uncertainty has introduced some caution.
market’s ability to absorb this pipeline will depend on continued population, employment and investment growth. The anticipated opening of Wynn Al Marjan Island remains a key demand catalyst, with the potential to support employment creation, boost tourism inflows and generate additional housing demand. The performance of the market in H2 2026 will therefore provide greater clarity on whether the recent moderation in prices and rents is temporary or signals a broader shift towards more measured market conditions.
The residential market, however, has shown some signs of moderation in recent months. Freehold ready residential transaction values reached AED 625.2 million in H1 2026, down 3.3% year-on-year but 24.1% higher than H2 2025. Sales prices remained above H1 2025 levels, with apartment and villa prices increasing by 6.5% and 5.9%, respectively, although both segments recorded modest declines over the past three months. Rental rates also remained higher year-on-year, rising by 7.1% for apartments and 8.0% for villas, but apartment rents declined over the past three months. Supply is expected to become an increasingly important factor, with around 1,600 units due for delivery in H2 2026, followed by approximately 4,700 units in 2027 and 7,500 units in 2028. The
Market Snapshot for H1 2026 Residential Sales Value
AED 625.2 Million (-3.3%) Y-on-Y
Apartment Sales Price
Residential Supply
+6.5% Y-on-Y
+7.1% Y-on-Y
600 units
4,700 units
Villa Sales Price
Villa Rental Price
Completed in H1 2026
Expected in 2027
Expected in H2 2026
Expected in 2028
+5.9% Y-on-Y
2
Apartment Rental Price
Ras Al Khaimah Market Performance H1 2026
+8% Y-on-Y
1,600 units
7,500 units
Macroeconomic Overview and Outlook Ras Al Khaimah’s economic environment remained broadly
contributed to an improvement in the overall trade balance,
supportive during H1 2026, with continued investment, business
which increased from AED 1.95 billion in H1 2025 to AED 3.08
formation and trade activity. S&P Global affirmed the emirate’s
billion in H1 2026. Meanwhile, inflationary pressures have
‘A/A-1’ sovereign credit rating with a stable outlook, while
increased,
forecasting real GDP growth to average around 2.2% in 2026–27
year-on-year in June 2026, potentially placing some pressure on
before strengthening over the medium term. Investment activity
household costs.
with
the
Consumer
Price
Index
rising
4.9%
also remained healthy, with Ras Al Khaimah attracting AED 771.5 million in new investment during H1 2026, according to the Ras Al
Looking ahead, regional geopolitical uncertainty introduces
Khaimah Chamber of Commerce. A total of 967 new businesses
some caution to the near-term outlook. However, Ras Al
joined
Khaimah
the
Chamber,
bringing
1,399
investors
from
68
has
remained
resilient
through
H1
2026,
with
nationalities to the emirate. These investments are expected to
investment inflows and business formation continuing to support
generate approximately 2,449 new jobs.
economic activity.
Business activity and employment also expanded. The RAK Economic Zone’s commercial licence base reached 63,258 by June 2026, while commercial employment increased to 85,989, from 67,107 at the end of 2025. Industrial employment stood at 61,527 at the end of H1 2026. International trade through RAK’s ports also remained active in H1 2026, with total imports reaching approximately AED 6.4 billion, while exports stood at AED 6.5 billion. Re-exports rose sharply to around AED 3 billion, compared with approximately AED 1.9 billion in H1 2025. This
Ras Al Khaimah’s underlying economy remains
resilient.
Strong
inflows,
business
investment
formation
and
employment growth will continue to support housing demand. While recent price and rental moderation reflects a more
cautious
market
environment,
underlying fundamentals remain sound as we move into the second half of the year.
Yousir Habib
Associate Director, Commercial Valuation
3
Ras Al Khaimah Market Performance H1 2026
Freehold Ready Residential Market: Sales Value (AED Millions) Ras Al Khaimah’s freehold ready residential market recorded total transaction values of AED 625.2 million during H1 2026, representing a 3.3% year-on-year decline compared with H1 2025. However, transaction values were 24.1% higher than in H2 2025. The annual decline was primarily driven by the villa segment, where transaction values fell by 7.4% year-on-year to AED 297.7 million. In contrast, the apartment segment remained broadly stable, with transaction values increasing by 0.7% year-on-year to AED 327.6 million. On a quarterly basis, total transaction values reached AED 353.8 million in Q2 2026, increasing by 30.3% quarter-on-quarter, while remaining 0.3% below the same period last year. Apartments accounted for AED 155.6 million in transaction value, while villas accounted for AED 198.2 million.
Sales Values 800M
600M
646.5M
630.3M
700M 541.2M
504M
500M
325.1M
334.1M
400M
625.2M
327.6M
334M
260M
300M 200M 321.3M
296.2M
100M 0M
244M
207.2M
H1 2024
H2 2024
H2 2025
H1 2025 Villas
Apartments
297.7M
H1 2026
Total Sales Transactions
Change in Transaction Value (%) H-on-H
+22%
+26%
+24.1%
Y-on-Y
-7.4%
+0.7%
-3.3%
Source: Cavendish Maxwell, Ras Al Khaimah Statistics Centre
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Ras Al Khaimah Market Performance H1 2026
Residential Supply Residential supply in Ras Al Khaimah remained relatively contained during H1 2026, with approximately 600 units added to the market. The development pipeline, however, points to a step-up in deliveries over the coming years. Around 1,600 units are expected in H2 2026, followed by approximately 4,700 units in 2027 and 7,500 units in 2028, representing an increase from the more measured pace of recent periods. As this volume of supply enters the market, demand absorption becomes an increasingly important consideration. The market’s ability to accommodate the pipeline will depend primarily on continued employment growth and the emirate’s capacity to attract and retain residents, with infrastructure development, connectivity improvements and community amenities serving as supporting factors that strengthen the emirate’s residential appeal.
8k
7k
6k
5k
4k
7.5k
3k 4.7k
2k 1.6k
1k 1.2k
0k
0.6k 2025
2026 (E) Completed Supply
Source: Cavendish Maxwell, MEED Projects
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Ras Al Khaimah Market Performance H1 2026
2027 (F*) Upcoming Supply
2028 (F*)
Sales Price Change (%) Residential sales prices in Ras Al Khaimah remained higher year-on-year during H1 2026, with apartment prices increasing by 6.5% and villa prices by 5.9%. However, price growth has started to ease, with apartment prices declining by 0.7% and villa prices by 0.2% over the past three months. The recent easing reflects a more cautious approach among buyers amid broader macroeconomic uncertainty. The performance during H2 2026 will therefore be important in determining whether the recent easing is temporary or marks a shift in price momentum.
10% 8%
6.5%
5.9%
6% 4% 1.2%
2%
1.5%
0% -2%
-0.7%
-0.2%
Past 3 Months
Past 6 Months Apartments
Past 12 Months
Villas
Source: Cavendish Maxwell, Property Monitor
Rental Rate Change (%) Rental rates in Ras Al Khaimah remained higher year-on-year during H1 2026, with apartment rents increasing by 7.1% and villa rents by 8.0%. However, the recent trend has been more mixed, with apartment rents declining by 1.4% over the past three months, while villa rents increased by 0.9%. The divergence between the two segments indicates that rental performance is becoming more uneven within the emirate, with apartment rents showing greater near-term sensitivity to the more cautious market environment.
10% 8% 7.1%
8% 6% 3.8%
4%
2.4% 0.9%
2% -1.4%
0% -2%
Past 3 Months
Past 6 Months Apartments
Source: Cavendish Maxwell, Property Monitor
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Ras Al Khaimah Market Performance H1 2026
Villas
Past 12 Months
2026 Real Estate Market Outlook Ras Al Khaimah’s residential market enters the second half of 2026 with growth momentum showing signs of easing. While the underlying economic environment remains supportive, with continued investment inflows, business formation and employment growth providing a foundation for residential demand, heightened regional geopolitical uncertainty has introduced greater caution among buyers and tenants, contributing to softer near-term price and rental performance. The supply pipeline will also become an increasingly important factor for the market. Around 1,600 units are expected in H2 2026, followed by approximately 4,700 units in 2027 and 7,500 units in 2028. The ability of employment and population growth to absorb this incoming supply will therefore be important, particularly as increased competition between developments could result in more measured price and rental growth. The anticipated opening
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Ras Al Khaimah Market Performance H1 2026
of Wynn Al Marjan Island remains a key medium-term demand catalyst, with the potential to support tourism inflows, stimulate employment creation and generate additional housing demand, particularly in communities in proximity to Al Marjan Island. Regional geopolitical developments remain an important factor to monitor through H2 2026, particularly given their potential impact on buyer and tenant sentiment. However, Ras Al Khaimah's economy has so far remained relatively resilient, with continued investment, business formation and employment growth during H1 2026. The performance of the residential market during the second half of the year will provide greater clarity on whether the recent moderation in sales prices and rental rates is temporary or marks a broader shift towards more measured market conditions.
Authors Julian Roche
Ali Siddiqui
Chief Economist Cavendish Maxwell julian.roche@cavendishmaxwell.com
Research Manager ali.siddiqui@cavendishmaxwell.com +971 50 877 0190
Key Contacts Yousir Habib
Zacky Sajjad
Director, Business Development and Client Relations zacky.sajjad@cavendishmaxwell.com +971 50 644 5089
Associate Director, Commercial Valuation yousir.habib@cavendishmaxwell.com +971 50 367 9511
Ras Al Khaimah +971 7 203 7822 rak@cavendishmaxwell.com S-01, Unit 8, Level 42, Julphar Tower, Al Hisn Road, Dafan Al Nakheel P.O. Box 94254, Ras Al Khaimah, United Arab Emirates Dubai
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