Cost of Buying Property in Ras Al Khaimah
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
- 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)
- AED 3,000-5,000 – Professional property valuation
- AED 2,000 – Home inspection report
- Registration Fee (4%): AED 32,000
- NOC: AED 2,000
- Total Upfront Costs: ≈AED 34,000
3. Ongoing Ownership Expenses
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 |
- 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)
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 |
- Downpayment: AED 300,000
- Loan Amount: AED 700,000
- 25-year mortgage @5.5% = AED 4,280/month
5. Rental Yields & ROI Potential
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 |