1 июл. 2025 г.
Investment Insights
Al Marjan Island in Ras Al Khaimah is rapidly emerging as a standout market for waterfront property investment. With strong rental income trends, significant recent value gains, and landmark developments like the Wynn resort reshaping expectations, this analysis dives deep into the numbers at play.
Affordable Entry Price – AED 1,200–1,800/sq ft (2024)
In 2024, off-plan properties on Al Marjan Island were registering between AED 1,200 and AED 1,800 per sq ft. This included:
Base-level apartments starting around AED 1,200.
Branded or luxury units reaching AED 2,500 per sq ft.
Villas often priced AED 2,500+ per sq ft at the upper end.
Such a broad range allows for diverse investment strategies—from budget-friendly entry points to high-end positions—all while significantly undercutting comparable waterfront locations in Dubai that typically range between AED 3,500 and AED 5,500 per sq ft. This affordability not only democratizes coastal investment but also paves the way for sizeable profitability in the medium to long term.
Explosive Price Growth – +33.3% in 2024
Property values on Al Marjan Island experienced a dramatic surge:
Prices climbed from early 2023 averages of AED 745 per sq ft by 7.5% in the first half of the year.
Most strikingly, a 33.3% year-over-year increase in 2024 pushed the average to AED 1,067 per sq ft.
Premium segments—branded residences, beachfront villas—are commanding AED 2,500+ per sq ft.
This level of annual appreciation is rare for a single-year jump and reflects both speculative momentum and genuine market repositioning, largely propelled by high-profile resort projects and increased investor demand.
Rental Surge – +62% in 24 Months
Rents on Al Marjan Island have posted impressive gains:
Annual rent averages rose from AED 40,000 in April 2023 to AED 64,800 by April 2025, marking a 62% increase.
Rental rates now average AED 81 per sq ft, with a range between AED 50 and AED 120 depending on unit type and location.
Year-on-year growth stood at +45% in 2023–2024 and +12% in 2024–2025.
These rent spikes are driven by greater demand from tourists and residents, improved resort infrastructure, and deeper leisure-oriented offerings, signaling a clear shift toward income-generating potential.
Wynn Impact: 14% Land Price Jump; 20% YoY Growth
The presence of the Wynn integrated resort is reshaping the island’s investment narrative:
Immediately after Wynn's announcement, nearby land values jumped 14%.
In 2025 so far, Al Marjan recorded roughly 20% property value growth year-over-year, outpacing many more established UAE markets.
With Wynn’s construction now at roughly 55% completion and topping out expected by year-end, its operational opening in early 2027 will serve as a major catalyst for further appreciation.
This resort is not just a standalone landmark—it’s a market-moving asset that influences surrounding valuations significantly.
Villa & Apartment Price Structure
Off-plan data show a rich pricing segmentation:
One-bedroom apartments average AED 1.882 million (~AED 2,394 per sq ft).
Two-bedroom units average AED 3.1 million (~AED 2,659 per sq ft).
Three-bedroom units average AED 4.435 million (~AED 2,618 per sq ft).
Townhouses and penthouses often exceed AED 5 million.
This wide spectrum offers multiple positioning opportunities for investors, from mid-market family homes to luxury-grade holiday or signature properties.
Yields: 9–12.6% Gross; 5–9.4% Net
Short-term rental figures are strong:
Gross yields between 9% and 12.6% are common on platforms like Airbnb.
Net yields average 5–9.4%, factoring in occupancy rates and management costs.
Standalone revenue metrics show ADR (Average Daily Rate) of USD 180, 34% occupancy, translating into average annual gross income of USD 12,333 per unit.
These figures position Al Marjan ahead of many regional benchmarks by combining tourist appeal with investor profitability.
Short-Term Rental Market Snapshot
Current market figures include:
47 active vacation rental listings.
USD 180 average daily rate.
34.4% average occupancy.
USD 12,333 median annual revenue per listing.
These numbers show a vibrant, yet still developing, short-term rental ecosystem with significant room for expansion as tourism amenities mature.
Upside Potential: 70–147% Projection by 2030
Looking ahead:
Analysts forecast that prices might reach AED 10,000 per sq ft by 2030—implying upside of 350–500% from current values.
Other sentiment-based forecasts cite up to 147% gains over upcoming years.
This follows a pattern seen in other previously underappreciated waterfront regions that later became boutique hotspots.
While these are projections, they reflect the scale of possible upside as momentum builds toward infrastructure completion and resort openings.
Key Growth Drivers
Wynn Resort: Sets a new benchmark for prestige and draws international visitor attention.
Tourism Growth: RAK aims for 3 million annual visitors by 2030—supporting rental and hospitality demand.
Price Competitiveness: Island pricing remains below both Dubai waterfronts and local regional averages.
STR Performance: Strong operating data encourage speculative and rental market expansion.
Government Alignment: Regulatory clarity and development zone stratification support institutional interest.
Together, these factors form a compelling ecosystem that’s still aligning but holds clear promise.
Risks & Watchpoints
Construction Lags: Delays in Wynn’s opening or broader island infrastructure could temper investor sentiment.
Price Volatility: With rapid growth—62% rental climb, etc.—market stabilization draws nearer.
Liquidity Stage: Early development phases often see fewer buyers for resale units.
Regulatory Novelty: The introduction of casino-resort dynamics introduces uncharted socioeconomic factors.
Summary & Outlook
Al Marjan Island presents a uniquely well-rounded investment profile:
Entry Pricing: AED 1,200–1,800 per sq ft offers a low barrier to entry.
Price Appreciation: +33% in 2024, with ~20% pacing into 2025.
Rental Incomes: AED 81 per sq ft and near-12-month gains of +62%.
STR Earnings: Net yields up to 9.4% for short-stay models.
Long-Term Upside: 70–150% projected value growth as resorts and infrastructure mature.
For those seeking coastal ROI and ready to wait out two or three development phases, Al Marjan offers one of the most data-supported entry points in the GCC waterfront landscape.
