Cost of Buying Property in Ras Al Khaimah: The Complete Breakdown

Ras Al Khaimah (RAK) has emerged as one of the most affordable property markets in the UAE, attracting investors with prices up to 40% lower than Dubai. But what exactly does it cost to buy property in RAK? This 2025 guide breaks down all expenses from purchase prices to hidden fees—helping you budget smartly.

1. Property Prices in Ras Al Khaimah

Current Market Prices by Area

Location	Property Type	Price Range (AED)	Price per Sq.Ft (AED)
Al Marjan Island	1-Bed Apartment	600,000 - 1,100,000	900 - 1,300
RAK Downtown	Studio	350,000 - 550,000	650 - 850
Al Hamra Village	2-Bed Villa	1,200,000 - 1,800,000	750 - 950
Al Nakheel	3-Bed Townhouse	950,000 - 1,400,000	600 - 800

2. Upfront Purchase Costs

Mandatory Fees

4% Property Registration Fee (Calculated on purchase price)
AED 2,000 – NOC Certificate (for resale properties)
AED 2,500 – Ejari Registration (annual rental contract fee)

Optional But Recommended Costs

AED 3,000-5,000 – Professional property valuation
AED 2,000 – Home inspection report

Example Calculation for AED 800,000 Apartment:

Registration Fee (4%): AED 32,000
NOC: AED 2,000
Total Upfront Costs: ≈AED 34,000

3. Ongoing Ownership Expenses

Annual Costs

Expense	Average Cost (AED/year)
Service Charges	8 - 15/sqft
DEWA (Utilities)	6,000 - 12,000
Property Insurance	0.1% of property value
Visa Fees (if applicable)	3,000 - 5,000

Case Study:

For a 1,000 sqft apartment in Al Marjan Island:

Service Charges: AED 10,000
DEWA: AED 8,000
Insurance: AED 800
Total Annual Costs: ≈AED 18,800

4. Financing Costs (If Taking a Mortgage)

2025 Mortgage Rates in RAK

Bank	Interest Rate	Max LTV	Fees
RAKBANK	5.25%	75%	1% of loan
ADCB	5.50%	70%	0.5% of loan
Mashreq	5.75%	65%	1.5% of loan

Example for AED 1M Property with 70% LTV:

Downpayment: AED 300,000
Loan Amount: AED 700,000
25-year mortgage @5.5% = AED 4,280/month

5. Rental Yields & ROI Potential

Expected Returns by Area

Location	Avg. Rental Yield	Annual ROI (AED)
Al Marjan Island	7-9%	56,000 - 72,000
RAK Downtown	8-10%	28,000 - 40,000
Al Hamra	6-8%	72,000 - 96,000

6. Hidden Costs Many Investors Miss

Early Termination Fees (5-10% if selling within 2 years)
Special Community Assessments (For major repairs)
Furnishing Costs (AED 15,000-30,000 for basic setup)
Bank Charges (AED 2,500-5,000 for international transfers)

7. Cost Comparison: RAK vs Other Emirates

Cost Factor	Ras Al Khaimah	Dubai	Sharjah
Price per Sq.Ft	650-1,300	1,200-2,500	800-1,500
Registration Fee	4%	4%	4%
Service Charges	8-15/sqft	12-25/sqft	10-18/sqft

8. Budgeting Tips for Smart Investors

✔ Negotiate 1-3% off asking prices (Common in RAK market)

✔ Choose properties near new infrastructure (RAK Metro coming 2026)

✔ Consider fractional ownership (From AED 100,000 via platforms like Stake)

✔ Use property management (5% fee but saves vacancy costs)

Eplogoffplan helps investors identify smart-budget opportunities across the UAE, including RAK, while offering guidance on negotiation, infrastructure impact, and fractional investment solutions.