RAK lifestyle lures AED1bn investment

Ras Al Khaimah / Emirates Business

Its multicultural community is a hallmark of the popular Al Hamra Village neighbourhood in Ras Al Khaimah, as leading market developer Al Hamra Real Estate Development reveals in its latest investor nationality statistics for its flagship community.
According to Barry Ebrahimy, Head of Commercial for the company, the established community welcomed investors from a total of 99 countries since it was first launched in 2003, led by demand from the UK, Germany, India, Russia and the UAE.
“To date, we have seen over AED1 billion invested with British investors accounting for over AED400mn, Germans AED106mn, Indians AED115mn and Russians AED150mn. All of our investors are attracted by the exceptional value Al Hamra and Ras Al Khaimah offers once compared to other neighbouring markets in UAE,” he said.
In its latest report, the RAK-based developer shared a full breakdown of its owner-tenant mix, and revealed that 44% of residents hail from the UK and Europe with 20% from the UAE/GCC, 13% from Asia/Oceania and the remaining 23% encompassing MENA, the Americas and Africa.
The top five investors by nationality are the UK (20.73%), Russia (7.25%), India (6.19%) and Germany (5.17%). Says Ebrahimy: “We have a true league of nations under our roof with investors from virtually every corner of the globe including Mozambique, Dominican Republic, Fiji and even North Korea.”
“We offer the combination of affordable luxury, an inclusive, friendly and secure lifestyle with ample leisure pursuits, retail outlets, excellent schools nearby plus the confidence of a quality product within a mixed-use community. If you compare property prices and rental rates in Ras Al Khaimah against Dubai, for example, there are clear benefits when it comes to Al Hamra’s value proposition,” added Ebrahimy.
Data released at the recent Cityscape Global 2016 exhibition by regional real estate company Asteco, put the average rental price of a one-bedroom apartment in Dubai at AED 89,000, with two and three-bed units going for AED126,000 and AED167,000 respectively. Villas meanwhile, rent from an average of AED205,000 to AED313,000 per annum for a three to five-bedroom.
“Average rental rates at Al Hamra are definitely bucking the overall UAE trend with a studio available for AED32,000, one beds for a very acceptable AED48,000, a two-bedroom unit for AED67,500 and our top end five-bedroom villas at around AED325,000; all of which represent a compelling value option for tenants,” said Ebrahimy.
While that’s great news for tenants looking for quality but on a budget, a vital consideration, sales prices for Al Hamra homes offer unrivalled value.
According to the Asteco research, apartments in popular Dubai areas including Jumeirah Lake Towers and Dubai Marina range from AED1,180 to AED1,420 per square foot, in Business Bay, DIFC and Downtown Dubai prices vary from AED1,345, AED1,650 and AED2,000 per square foot respectively.
Villas in Dubai’s established communities such as Arabian Ranches, the Meadows and, at the top end, Palm Jumeirah, are selling from anywhere between AED1,125 per square foot (Arabian Ranches) to AED2,245 per square foot (Palm Jumeirah).
“Comparable units in Al Hamra Village, including the latest addition to our portfolio, the three, four and six-bedroomed Bayti homes, are selling for between AED536 and AED714 per square foot. Our average sales rates across the villas are AED642 per square foot, representing outstanding investment opportunities, particularly with the array of villa sizes and configurations we have available,” he notes.