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Al Noor development,
Ras Al Khaimah |
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Al Sanaa Development,
Ras Al Khaimah |
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Buying overseas: Goodbye Dubai...hello Ras Al Khaimah |
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HOME >> NEWS >> Buying overseas: Goodbye Dubai...hello Ras Al Khaimah |
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 Ras Al Khaimah translates as "the top of the tent" and, appropriately, this member of the United Arab Emirates sits in the northernmost point of the country, between Dubai and the waters of the Persian Gulf.
Overshadowed until recently by the more showy charms of its neighbour, the desert emirate is now seeing a heatwave of a different kind as developers and investors move in. Keen to follow the example and success of Dubai, Ras Al Khaimah (or RAK, as it is known) has instigated a programme of building that will see it change dramatically over the next few years.
Plans include Dubai-style offshore residential and leisure complexes, a new gateway city and large-scale conference facilities. The government has also commissioned sleek, innovative buildings from world-class architects.
Though it has an international airport bringing flights from the Middle East and Africa, RAK is also well placed for visitors arriving via Dubai, just 45 minutes drive away. A proposed new rail network connecting the entire UAE region will bring journeys down to 20 minutes, and this is also giving RAK a boost.
It's not only tourists the emirate is hoping to draw, however, but businesses and international property buyers. With murmurs that Dubai is now overheated and overdeveloped, agents say RAK is offering a chance to get a foothold in the UAE at half the price.
Residential accommodation is spread across low-rise apartment blocks and resort complexes, offering facilities that include gyms and spas, private beaches and tax-free retail outlets. Prices start from £45,000 for a studio and £65,000 for a one-bedroom apartment in a waterfront development. Villas with three-bedrooms start from around £220,000, though luxury four and five-bedroom homes can cost from £800,000.
Some property firms are claiming that prices have increased in the past year by as much as 200 per cent and that owners could see rents of as much as £25,000 per annum. However, Simon Battiste, of Dream Homes Worldwide, says such figures should be treated with caution.
"Prices have gone up in the region by around 30 per cent in the past six months," he says, "but a rise of more than 100 per cent over the next three to four years would be a fantastic return."
Mark Stott, of local agent Select Property, is equally scathing of inflated figures, claiming 20 to 25 per cent appreciation and around 15 per cent rental yields per annum is more realistic.
One of the key sites being sold is Al Marjan Island, a sprawling, man-made construction being built offshore. Buyers currently snapping up apartments are either speculators looking to sell on before completion or those needing a cheap base within commuting distance of Dubai.
"You can buy coastal property at a fraction of the cost of comparable residences in Dubai," explains Battiste. "In Ras Al Khaimah, £75,000 will get you a frontline beach or marina apartment. In Dubai it will get you something third line back from the sea or in a development that might be half-a-mile inland."
RAK's newly emerging status and Middle Eastern location may conjure up images of arid landscapes punctuated by building sites, but the tourist board is keen to point out that there is plenty to do. There are new golf courses and marinas as well as miles of deserted beaches. The area of Musandam, on the Oman border, offers the chance to see soaring mountains and sail the "Arabian Fjords" formed by the Straits of Hormuz. Dotted among the canyons and wadis are ancient villages where life goes on pretty much as it always has, and the ruins of hill forts, palaces and tombs dating back thousands of years.
According to Stott, buyers aren't solely investors looking to make a quick buck. He is seeing plenty of purchasers who love holidaying in the year-round sun of the UAE and says there's also an international community that works in Dubai full time, but sees RAK as a less frantic, more interesting place to commute from. "RAK is a beautiful location," says Stott says: "It's more dramatic in terms of landscapes and isn't as crowded or developed as Dubai or Abu Dhabi. Many people who buy there are looking for a good investment but there are also many who choose RAK for the lifestyle."
www.selectproperty.com; 0870 111 0000www.dreamhomesww.com; 0800 0193 847www.rakproperties.net; 00971 72330004
Buyers' guide
*Foreign nationals are allowed to own freehold in Ras Al Khaimah and ownership automatically grants you and your immediate blood relatives rights of residency in the emirate.
*Any money paid to a developer should be held in an escrow account, which is regulated and releases funds only for building a specific project.
*Many UK banks don't offer mortgages for purchase in the Middle East explore your finance options before securing a property.
*Check your developer has approval from the government masterplanner Rakheen, as well as all the necessary building permits. If these aren't in place, rethink your purchase.
Source: http://www.independent.co.uk/ |
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