Rental prices on Al Marjan Island in Ras Al Khaimah have seen a dramatic surge over the past two years, with the median annual rent climbing from Dh40,000 in April 2023 to Dh64,800 in April 2025 a rise of 62 per cent in just two years, according to data from Property Finder.

The most recent figures show a 12 per cent year-on-year increase between April 2024 and April 2025, following a steep 45 per cent jump the previous year.

The sharp rise in rental prices is largely concentrated in apartments and duplexes, which dominate the market on Al Marjan Island, making up 97 per cent of all residential rental listings.

Currently, the median rental price per square foot on Al Marjan Island stands at Dh 81, with listings typically ranging between Dh50 and Dh120 per sq ft. The median size of a rental property is 773 sq ft.

Compared to other sought-after residential areas in Ras Al Khaimah such as Al Hamra Village and Mina Al Arab rents on Al Marjan Island are approximately 20 per cent higher. This premium is driven by the island’s growing appeal as a waterfront destination and its proximity to high-profile developments, including the upcoming Wynn Al Marjan, the first integrated resort in the Middle East.

Fibha Ahmed, Vice President of Property Sales at Bayut & dubizzle, highlighted the Marjan island’s apartment sector as a key driver of the upward momentum. “We’ve seen solid growth across the board, but it’s the apartment segment in Al Marjan Island that really stands out,” she said. “Rents jumped by 42 per cent year-on-year from Q1 2023 to Q1 2024, and then climbed another 13 per cent  by Q1 2025.”

This sharp trajectory underlines the growing appeal of the waterfront destination not just for tenants in search of upscale, well-connected homes, but also for investors eyeing compact units with strong rental yields.

According to Fibha, user engagement backs the numbers. “Our data at Bayut shows Al Marjan Island consistently attracts around 25 per cent of all apartment rental views in Ras Al Khaimah, despite being a smaller community in size. That’s a significant concentration of demand, driven by both media attention and actual user interest.”

Ankur Aggarwal, Chairman and Founder of BNW Developments stated that
“Based on current momentum and upcoming high-impact developments, BNW Developments anticipates rental prices in Al Marjan Island to increase by approximately 10–15 per cent over the next 12–24 months. This growth will likely be driven by continued demand from international tenants, rising tourism, and the relatively limited availability of premium inventory.

As projects like the Wynn Resort near completion and tourism-linked infrastructure scales up, we expect further tightening in supply, pushing rents steadily upward. The island is on course to become one of the UAE’s most dynamic investment destinations, with robust returns for both short-term and long-term asset holders.”

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Source: Khaleej Times

16th May 2025