RAK master developer Al Marjan expects prices to rise
The Ras Al Khaimah master developer Al Marjan Island expects plot prices to appreciate because of a shortage of waterfront plots.
The artificial islands cluster, which now houses three hotels – Rixos Bab Al Bahr, Double Tree by Hilton and Marjan Island Resort and Spa – with about 1,500 hotel rooms, will have about six hotels on a second island, said Abdullah Al Abdooli, the managing director of Al Marjan Island. The entire development is set for completion in 2025, and will have about 8,000 hotel rooms.
Plot prices have gone up by 20 per cent so far this year, and are expected to increase by 20 per cent again next year because of the shortage of beachfront properties, Mr Al Abdooli said.
“The occupancy rates of our Al Marjan Island resorts are encouraging, and that is why we are seeing a huge demand on the beachfront for hotels, and this is key to the increase in price,” he said.
“A lot of investors are launching projects, and the real estate market is promising in the UAE, not only us. It is a secure country and the ease of doing business is encouraging.”
In July, the UAE Central Bank said that total loans and advances decreased by 0.2 per cent month-on-month to Dh1.54 trillion as non-residents withdrew Dh6.3 billion from their accounts during the month.
The tightening of liquidity in the UAE is not going to affect sales to local investors, according to Mr Al Abdooli.
“It’s a cycle and there might be a small correction in prices but at the end, real estate is stable,” he said.
The developer is reviewing four project submissions for islands one and two. The company also expects to develop business districts, residential neighbourhoods and a downtown on the mainland in RAK in the next few years.
The company is responsible as a master developer for all freehold land that belongs to the government of RAK.
On Monday, the Dubai conglomerate Mohammed Omar bin Haider Holding Group said it would build a Dh1bn mixed-use complex at Al Marjan Island, spread across 1.4 million square feet. The project is currently in the design phase. It will include a five-star hotel, luxury residential apartments, commercial buildings and a retail area.
Follow The National’s Business section on Twitter
Published: September 6, 2016 04:00 AM