Ras Al Khaimah’s freehold residential market recorded its first quarterly price decline in more than two years, according to data from the ValuStrat Price Index published this week.
The overall VPI eased to 123.5 points in Q2 2026, a 0.5 per cent drop from the previous quarter, though values remained 5.4 per cent higher than a year earlier. The index uses Q1 2024 as its base of 100 points.
ValuStrat describes the VPI as the first valuation-based index to track capital values in RAK’s freehold residential market. The 5.4 per cent annual figure is the slowest rate of growth the index has recorded in two years, reflecting a broad moderation after several quarters of accelerating gains.
Villas and apartments both showed signs of softening. The villa index held flat quarter-on-quarter at 124.1 points, but annual growth slowed from 7.4 per cent in Q1 2026 to 4.6 per cent.
Apartments edged down 0.8 per cent over the quarter to 123.1 points, with annual growth of 5.8 per cent. The weighted average capital value across all residential property stood at AED 1,429,516, with a per-square-foot average of AED 1,006.
At the location level, Al Marjan Island apartments continued to outperform, posting 9.4 per cent annual growth to reach a capital value of AED 928,000 per unit, or AED 1,160 per square foot.
Values there were unchanged quarter-on-quarter. Al Hamra villas were the next strongest performer, up 6.2 per cent year-on-year to AED 2,208,600, also flat over the quarter. Growth was more subdued at Mina Al Arab, where apartment values rose 2.3 per cent annually but fell 1.3 per cent in the quarter, and villa values gained 3 per cent year-on-year while holding steady.
Average gross rental yields across freehold apartments and villas both came in at 5.3 per cent.
The RAK index brings ValuStrat’s total proprietary index count to 10, covering residential, office and industrial segments across the UAE and Qatar.
