Ras Al Khaimah's real estate sector is experiencing a significant boom, with Al Marjan Island witnessing a 348% year-on-year increase in retail sale prices by the first half of 2026, reaching AED 19.7 million. This surge, attributed to tourism and luxury developments, has positioned the emirate as a major retail hotspot, though a slight cooling was observed in the second quarter. Other areas in Ras Al Khaimah also saw substantial price growth. In contrast, Dubai's commercial rental market presented a mixed picture, with Deira leading in retail rent increases and Jumeirah Lake Towers and Business Bay showing growth in office rents, while some locations experienced a decline.

Ras Al Khaimah's real estate sector is experiencing a significant boom, with Al Marjan Island witnessing a 348% year-on-year increase in retail sale prices by the first half of 2026, reaching AED 19.7 million. This surge, attributed to tourism and luxury developments, has positioned the emirate as a major retail hotspot, though a slight cooling was observed in the second quarter. Other areas in Ras Al Khaimah also saw substantial price growth. In contrast, Dubai's commercial rental market presented a mixed picture, with Deira leading in retail rent increases and Jumeirah Lake Towers and Business Bay showing growth in office rents, while some locations experienced a decline.

Ras Al Khaimah's real estate sector is experiencing a significant boom, with Al Marjan Island witnessing a 348% year-on-year increase in retail sale prices by the first half of 2026, reaching AED 19.7 million. This surge, attributed to tourism and luxury developments, has positioned the emirate as a major retail hotspot, though a slight cooling was observed in the second quarter. Other areas in Ras Al Khaimah also saw substantial price growth. In contrast, Dubai's commercial rental market presented a mixed picture, with Deira leading in retail rent increases and Jumeirah Lake Towers and Business Bay showing growth in office rents, while some locations experienced a decline.

As the UAE witnesses the resurgence of the real estate sector,  despite the geopolitical challenges, the emirate of Ras Al Khaimah has recorded a sharp increase in property prices. This comes as commercial property prices in parts of the UAE surged by as much as 348 per cent in a year.

According to the data provided by Property Finder, a UAE-based real estate firm, the first half of 2026 showed sharp spike increases in Ras Al Khaimah, where average retail sale prices on Al Marjan Island reached AED 19.7 m. That represents an increase of 348 per cent in year-on-year sales.

Average Al Marjan Island retail sale prices increased from AED 4.4m in H1 2025 to AED 19.7m in H1 2026. However, there were signs of cooling between the first and second quarters.

Besides Al Marjan, RAK Central also saw a surge, with prices increasing from AED 3.4 m to AED 11.9 m, while Al Hamra Village retail sale prices rose 44 per cent to AED 2.4 m.

According to Property Finder, Ras Al Khaimah had developed into a major retail hotspot, with tourism and luxury developments driving substantial year-on-year increases despite the cooling off during the second quarter.

Dubai’s rental market

The study also recorded the year-on-year increase in Dubai’s commercial market. Deira produced the largest year-on-year increase among the five Dubai retail rental locations, with the average rising 61.5 per cent.

Jumeirah Village Circle retail rents increased 33.4 per cent to AED511,536, while Arjan rose 19.3 per cent to AED422,612.

Office rents increased 30.6 per cent in Jumeirah Lake Towers while Business Bay office rents increased 11.4 per cent. However, Bur Dubai office rents fell 29.2 per cent, while International City retail rents declined 11.4 per cent.

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