| RAK: Real estate moving forward Despite difficult conditions in the real estate market following the global economic downturn during 2009 and 2010, Ras Al Khaimah (RAK) has held up relatively well, and a number of developments are being pushed ahead. Work on Al Marjan Island - a cluster of five man-made islands near the Al Hamra area outside RAK City - is progressing well, and in January 2012 it was reported that the flagship $1. However, infrastructural challenges have been cited as a reason for what some see as smaller-than-expected returns. While RAK isn't unique in this regard within the UAE, connectivity problems throughout the market are likely to be resolved at a slow pace because of high number of buildings marked for completion and handover. However, these new revenue streams, in addition to the handover of 3000 apartments, villas and offices by the year-end 2012, means that RAK Properties should return to growth in the short-to-medium term. The occupancy level for the project as a complete stood at 84% by February 2012, according to AHREDC. Several other key tourism infrastructure projects will come on-line in 2012, including Bab Al Bahr, scheduled to open its doors in the first quarter of 2013 on Al Marjan Island. 2m tourists to visit the emirate by the end of 2012, up from 800,000 in 2011. Each of these developers is on track to oversee the completion of major projects in 2012-13. The Mina Al Arab villas project, for example, started in 2005 by RAK Properties, is now in its final stages. A handful of major players continue to dominate the sector: Al Hamra Real Estate Development Company (AHREDC), Rakeen Development and RAK Properties, that are all partly owned by the government and less than a decade old. With RAK set to gain an advantage from swelling numbers of tourists, largely due to increased government promotion of the sector, such developments will cater to the uptick in demand. The islands will offer a broad mix of developments, from commercial to residential, including apartments for rent. Although the company posted net profits of $29. RAK Properties - the emirate's biggest property developer - has also seen large-scale developments edge closer to completion, including Mina Al Arab, a $3. |
Sunday 10 June 2012
RAK: Real estate moving forward
