Should you invest in Ras Al Khaimah?
With the upcoming opening of Wynn Marjan Island, the first casino in the United Arab Emirates, real estate investment in Ras Al Khaimah is booming. New developments are multiplying, and prices for off-plan projects are skyrocketing, with some exceeding the prices of beachfront projects in Dubai. But will the promises of double-digit returns and capital gains be fulfilled? What is the reality? In this article, I give you my opinion on this market and the dangers it poses, based on facts as far as possible.
Ras Al Khaimah, the new Las Vegas?
Certainly not. In Las Vegas, there are now nearly 80 casinos on the famous Strip. With only one casino, and perhaps two within five years, we are a long way from the figures in Las Vegas.
Some agents also present Wynn Marjan Island as the future largest casino in the world. This is not the case. There are much larger casinos around the world, particularly in the United States and Macau.
Comparing Ras Al Khaimah to Las Vegas, solely because of the presence of a casino, is a gross mistake, or worse, a lie. And besides, real estate prices in Las Vegas are not that high.
A casino on the outskirts of Dubai
Not quite. To get to Marjan Island from Burj Khalifa, allow about 1 hour and 20 minutes by car during off-peak hours. During rush hour, the journey time can quickly reach 2 hours. And it takes even longer if you're leaving from the Marina or Palm Jumeirah. Forget the idea of living in Ras Al Khaimah and commuting to Dubai every day.
Casinos coming soon to Dubai and Abu Dhabi?
We know that MGM Group, one of the world's largest casino owners, has applied for licenses in Dubai and Abu Dhabi. Its goal is clear: to open several casinos in the two main cities of the Emirates.
Construction on three establishments has already begun. The Bellagio, Aria, and MGM Grand are currently under construction on a private island in Jumeirah, next to the Burj Al Arab. Work is expected to be completed by 2028 at the latest.
As repeatedly stated by MGM Group CEO William Hornbuckle, the licenses have not yet been issued. According to him, it is only a matter of time.
The consequences of opening casinos in Dubai
The Wynn Marjan Island will undoubtedly be an exceptional resort. But will it be superior enough to the MGM Group's establishments built in the heart of Dubai to justify a nearly two-hour round trip? The question will certainly arise, and it is not certain that Ras Al Khaimah will emerge victorious from this competition with Dubai.
Rumors of a casino in Abu Dhabi
There are persistent rumors thata casino will open in Abu Dhabi in the next few years, probably on Yas Island, near Disneyland. It must be said that it currently takes around three hours to drive from the center of Abu Dhabi to Marjan Island, and it is difficult to imagine tourists from Abu Dhabi making such a long journey to go to the casino. A casino on Yas Island could further boost the local real estate market, which is already buoyed by the announcement of the opening of Disneyland in 2030-2032.
Double-digit capital gains and rental yields guaranteed in Ras Al Khaimah?
That's what we hear a lot on social media. But personally, I'm skeptical. I think people interested in the casino will choose to stay at a hotel rather than rent an Airbnb. With 1,500 rooms, the Wynn Resort will be a major competitor for apartments available for short-term rental. We know that Wynn offers attractive prices to attract players; this is the case in all of its hotels, and will likely be the case in Ras Al Khaimah as well.
When it comes to capital gains and resale, the local market is not yet liquid enough to guarantee quick exits with capital gains. Few real estate agents are based in Ras Al Khaimah, and it is difficult to imagine that agents in Dubai would make the trip to RAK on a daily basis to manage resales. The same applies to rentals.
Conclusion
I think it is risky to invest large sums of money in Ras Al Khaimah today. If casinos were ever officially announced in Dubai or Abu Dhabi, the consequences for the RAK real estate market could be immediate and severe, with potential panic among investors and certainly a drop in resale prices.
Consider Ras Al Khaimah as a diversification opportunity if you have already invested in Dubai and Abu Dhabi.
Don't set the wrong goal, and be realistic about the expected financial performance of this investment.
Would you like to discuss this further? Please contact me at +971 56 367 2667.
Guillaume Giroux, Dubai Immo founder and real estate expert, Dubai, UAE
As founder of the Dubai Immo Group and a real estate investor, I bring you daily updates on the Dubai market. My aim is to provide you with all the keys you need to invest wisely and securely, by sharing my in-depth analysis and strategic advice.
