RAK real estate sees amazing growth, surges by 45% in just 5 years
Ras Al Khaimah has been capitalising on increasing interest from investors in UAE markets outside Dubai and Abu Dhabi.
As a result, the northern emirate’s real estate market expanded at a whopping rate of 45 per cent between 2011 and 2015.
The size of the market increased to AED3.401 billion to AED4.947bn over the five years, according to the latest figures by Ras Al Khaimah Chamber of Commerce.
Total annual growth of the real estate sector amounted 15 per cent annually over the period 2011-15. Building and construction sector saw a growth 18.3 per cent per annum while leasing and business services grew 14.5 per cent.
The real estate sector ranked third after the industrial and tourism sectors in its contribution to the total capital formation of Ras Al Khaimah in 2015, contributing 13.3 per cent, or AED1.209bn, this year out of the AED9.081 billion which is the total capital formation of the emirate for the same year.
Statistical data issued by RAK Centre for Statistics and Studies indicate an increase of real estate businesses over 2014-15 by 14.7 per cent, as the number increased from 9,844 in 2014 to 11,294 in 2015. The building and construction sector contributed to the largest increase by 16.9 per cent, or 1,142 businesses.
The real estate sector played a major role in the growth of the number of entities in the emirate, as the sector contributed 33.4 per cent of the total number of new entities in 2015.
The building and construction sector contributed the most with its increase of 26.3 per cent, whereas the number of real estate, leasing and business service entities constituted 7.1 per cent of the total number of new entities in 2015, indicating that increasing attention is being given to real estate as an encouraging investment area yielding low-risk and rewarding returns, according to the centre.
Rajaa Mohammed bin Juma Al Tunaiji, Head of the Economic Studies & Commercial Cooperation Department at RAK Chamber, said that the developments that have taken place with regards to Ras Al Khaimah’s economy of in the last five years indicate the importance of the real estate sector and its overall contribution to the growth of the Emirate’s economy.
“The real estate sector’s contribution to GDP over 2011-15 increased from 14.9 per cent to 17.4 per cent, an increase of 2.5 per cent. Figures such as these demonstrate the vibrancy of Ras Al Khaimah’s real estate sector, an essential driver in the economic growth of the emirate, and the feasibility of investment in the emirate’s real estate sector.”
“Ras Al Khaimah is still full of successful and prosperous whose hidden potential has not been fully exploited yet and that still have a high service capacity, by the availability of low-risk rewarding returns, in addition to the unlimited support by the political leadership of any real estate investment initiative, as the local and federal governmental authorities are authorized to eliminate all obstacles that the investors face and in all stages of the investment process,” said Dr. Ahmed Rashed Al Shemaili, Assistant Director-General of Commercial Service and Business Development Sector at RAK Chamber.
Al Shemaili added that the role being played by RAK Chamber, is as an active driver to attract, regulate and assist real estate investors, as the Chamber offers them an integral network of commercial, economic and legal services, in addition to statistical data, information which can help investors to make feasibility studies of different real estate projects.