RAK Apartment Rents Drop 1.4% in Q2 Ahead of Major Supply Wave
Ras Al Khaimah apartment rents fell 1.4% during the second quarter of 2026, giving tenants brief respite after a year of steady upward pressure. Data from Cavendish Maxwell shows that while annual apartment rents remain up 7.1% and villa rents have climbed 8%, quarterly momentum is moderating across several sectors. Apartment sales prices slipped 0.7% over the past three months, while villa sales prices dipped 0.2%.
The cooling quarterly figures arrive as developers prepare to expand the emirate’s residential footprint. Approximately 600 new units were delivered in the first half of 2026, with another 1,600 slated for completion before the end of the year. Beyond 2026, a total pipeline of 13,800 new homes is scheduled to hit the market by the end of 2028.
| Market Segment | Metric / Performance | Period |
|---|---|---|
| Freehold Ready Residential Sales | AED 625.2 million | H1 2026 (+24% vs H2 2025) |
| Q2 Ready Residential Sales Value | AED 354 million | Q2 2026 |
| Apartment Sales Prices | +6.5% YoY (-0.7% QoQ) | H1 / Q2 2026 |
| Villa Sales Prices | +6.0% YoY (-0.2% QoQ) | H1 / Q2 2026 |
| Apartment Rents | +7.1% YoY (-1.4% QoQ) | H1 / Q2 2026 |
| Villa Rents | +8.0% YoY (+1.0% QoQ) | H1 / Q2 2026 |
Transactional activity in ready properties showed strong quarterly momentum despite mixed year-on-year totals. Freehold ready sales generated AED 625.2 million across the first half of 2026, marking a 24% increase over the second half of 2025, though falling 3.3% short of the same period last year. Q2 carried the bulk of that volume, recording nearly AED 354 million in transactions, almost a third higher than Q1. Villas represented over AED 198 million of Q2 ready sales, while apartments accounted for close to AED 156 million.
On an annual basis, asset classes are diverging. Ready apartment sales values stayed firm across the first half, rising 0.7% year-on-year to nearly AED 328 million. Villa sales values, by contrast, dropped more than 7% to just under AED 298 million. On the tourism front, Ras Al Khaimah recorded 670,000 visitors in H1 2026, bolstered by a 47% surge in domestic arrivals.
While long-term growth remains intact, supported by annual apartment price gains of 6.5%, the incoming pipeline represents a shift in market dynamics. With 13,800 homes delivering by 2028 and long-term projections pointing to 25,600 new units by 2030, landlords face a substantial supply expansion that could temper rental yields if absorption fails to keep pace with handover schedules.
