Property prices in some Ras Al Khaimah developments are showing signs of revival as the northern emirates benefit from Dubai's housing boom.
Al Hamra Real Estate Development, the property company behind 2,500 flats and 1,000 villas at Al Hamra Village, reported yesterday that apartment prices in its development rose 16 per cent during the first quarter of this year.
It added that property prices rose between 10 and 12 per cent last year, driven by new residents priced out of the Dubai market.
"The demand is mostly from local and expatriate end users and investors," said Benoy Kurien, the general manager of Al Hamra Real Estate.
Cluttons said that apartments it had been valuing in the scheme had risen by 17.5 per cent over the past year.
It reported that newly built one-bedroom flats in RAK are selling for about Dh350,000, while rents stand at about Dh30,000 per annum.
"The reason that investment in Ras Al Khaimah is making sense to some investors at the moment is that gross yields are pretty high," said Richard Paul, a director in Cluttons residential valuations team.
"The price increases seem high because they are coming off a fairly low base."
