Comparative Investment Outlook: Al Marjan Island vs. Dubai Islands

As the UAE's real estate sector evolves, two standout coastal developments have captured investor attention: Al Marjan Island in Ras Al Khaimah and Dubai Islands in Dubai. While both offer beachfront living and strong growth potential, they cater to slightly different investor profiles. This brief comparison highlights key metrics that define their market outlook through 2030.

Entry Price and Capital Growth

Al Marjan Island currently offers a lower cost of entry, with average prices around AED 1,500 per square foot, compared to AED 2,800 on the Dubai Islands. This pricing difference reflects the maturity of Dubai’s market versus the emerging nature of Ras Al Khaimah’s luxury coastal developments.

However, what Al Marjan lacks in price today, it makes up for in upside potential. Property values are projected to climb to AED 6,000 per sq ft by 2030—a 300% increase. In contrast, Dubai Islands are expected to reach AED 7,000 per sq ft, representing a 150% growth. For investors focused on capital appreciation, Al Marjan presents a compelling opportunity.

Yield Performance and Income Stability

Al Marjan currently boasts a gross yield of 10.5%, significantly outpacing Dubai Islands at 7.5%. Even as yields stabilize over time, projections suggest Al Marjan will maintain a robust 8.5% yield by 2030, versus 6.5% on Dubai Islands.

Net yields on Al Marjan range between 5% to 9.4%, while Dubai Islands average slightly lower at 4.5% to 7.5%. For investors prioritizing income generation, Al Marjan delivers stronger cash flow—especially attractive in early-stage growth markets.

Short-Term Rental Metrics

Dubai Islands lead the short-term rental segment with higher occupancy rates at 45% and stronger average daily rates (ADR) of $250, yielding an estimated annual gross STR revenue of $22,000 per unit. Al Marjan, while still developing its hospitality footprint, records a 34.4% occupancy rate, ADR of $180, and STR revenue of $12,333.

These figures underscore Dubai’s established tourism infrastructure, making Dubai Islands more attractive for short-term rental strategies in the near term.

Strategic Considerations

• Al Marjan Island offers lower entry barriers, higher yield, and outsized capital appreciation potential—ideal for early movers and long-term investors.
  
  

• Dubai Islands, backed by Dubai’s global brand and infrastructure, provide more stable returns and stronger immediate rental income, suiting conservative or short-term-focused portfolios.
  
  

Both islands are shaping up to be regional investment hotspots, but your ideal destination depends on whether you're optimizing for yield and upside (Al Marjan) or stability and liquidity (Dubai Islands).