Tuesday, April 05, 2011

RAK property sector all set for steady growth in 2011

The real estate sector in Ras Al Khaimah (RAK) is all set to rebound from the regional real estate downturn, as experts have predicted a rise in sales and construction activities. However, prices are unlikely to touch pre-economic crisis levels.

Since early 2009 and during the year 2010, there was a decline in demand for properties in RAK, inline with the trend across the UAE and the whole region. Therefore, several developments were either put on hold or were slowed down, and demand dropped. Meanwhile, some buyers who purchased off-plan properties struggled to make payments.

This year, the situation however, seems to turn around, as there is a growing interest in residential properties again, while developers have begun to pick up activities on certain high-profile projects.

According to the General Manager at RAK Bank, Graham Honeybill, there is some confidence returning to the market, although the investors continue to be cautious.

He said that good properties in good locations are continuing to fetch good prices. But owing to oversupply, some segments are continuing to face problems.

Leading developer, RAK Properties, posted a rise in net profit for 2010, earning $51m, an increase of 10% over the previous year. The Company is also speeding up its work on the $2.7bn mixed-use Mina Al Arab project, and is hoping for additional growth in earnings for 2011.

The recent announcement by the Federal government about plans to boost infrastructure spending in the emirate is also likely to boost the property market in RAK. Nearly $1.55bn is likely to be invested to improve the water and power distribution networks in RAK and the other northern emirates.

Such improvement in utilities, coupled with planned upgrades to road links, will further strengthen the RAK’s appeal as a residential and commercial center.

RAK will soon have the same standard of services as that of Dubai and Abu Dhabi, but with reasonable pricing, minus the congestion of either city.

According to John Heck, the Vice-Chairman of RAK Properties, RAK is best suited for those from other emirates, who wish to live in the calmness of the emirate and commute.

With the return of confidence in the local and regional economy, the RAK property sector is all set for a steady recovery this year.

1 comment:

Taslim Shukri said...

2011 has been a good for Dubai Real Estate, as their is an increase in the demand of properties and control in the prices. And companies earning profits on their projects also, which were going in decline in previous two years.