Apartments and villas in upcoming ultra-lux projects in Ras Al Khaimah’s Al Marjan Island, including MASA Residence branded by YOO and Address Residences by Emaar, can fetch up to a whopping 58 percent return on investments over a five-year period, thanks to the upcoming multibillion-dollar casino-cum-resort project by Wynn, a new AI-based study predicted.
The Wynn Resort project is also triggering an influx of hotel and resort projects in Al Marjan, paving the way for the man-made island to successfully transition into a world-class hospitality destination.
The 16-storied waterfront residential project MASA Residence, inspired by renowned design genius Philippe Starck, and Address Residence by Emaar, comprising 234 high-end apartments, are projected to earn investors a cool 36 percent price appreciation over a three-year period, said the study by Realiste, a Dubai-headquartered AI-driven proptech operating globally.
The study also projected a market-beating 19.3 percent annual profit on resale for apartments and villas in MASA Residence and a 10 percent per annum profit on resale for apartments in Emmar’s project on Al Marjan Island.
“Al Marjan, dotted with a 23-kilometer scenic waterfront and palm-fringed mountain road, is fast developing into a premium leisure destination, attracting a myriad of residential and commercial projects, including hotels, residential buildings, villas, and retail outlets, offering a great opportunity for investors to reap in high double-digit returns over a relatively short span,” the Realiste study said.
Industry insiders said real estate prices in RAK are relatively affordable compared to Dubai, with the average price per square foot in the emirate estimated at AED1,627, as against AED2,203 in Dubai.
According to data from Realiste, the average price per square foot in Al Marjan is the highest in the emirate, reaching AED1,945, though when compared to Dubai’s prices, the area ranks only 69th out of 169 in terms of price per square foot.
Wynn Resorts announced plans to develop a multibillion-dollar integrated resort in RAK’s Al Marjan Island in January 2022, marking its first venture in the MENA region.
Scheduled for completion in 2026, Wynn Resorts’ landmark beachfront development, representing the largest foreign direct investment in RAK’s hospitality sector, will feature over 1,000 luxury rooms, a premium shopping mall and a state-of-the-art convention center, besides a variety of entertainment options, including a gaming area.
Mega hotel expansion plans on the island
The Realiste study said the casino project has significantly enhanced the area’s appeal as a destination for tourism and hospitality, with a long pipeline of investments from regional and global entities on the island.
Among the new investments include Abu Dhabi National Hotels (ADNH) recent land purchase for a new hotel, Aldar Properties’ reported plans to acquire an existing resort and additional land, totaling an estimated AED810 million, besides a slew of hotel and resort projects by some of the international majors.
Global hotel chains like Hilton and Marriott have also announced investment plans in the emirate.
Anantara Mina Al Arab, which is planning a 306-room project, including overwater villas. Conrad Marjan Island’s plans for a 120-room project, and Rove Al Marjan Island’s 450 rooms and a distinct beach club project are among the other hospitality projects slated to come up on the island.
Saij, A Mantis Collection Mountain Lodge’s plans to offer 35 lodges for eco-tourism enthusiasts, Sofitel Ras Al Khaimah Resort and The Westin Ras Al Khaimah are among the other brands planning to provide extensive accommodation and recreational options.
Impact of casinos on real estate projects
The Realiste study, citing research by Kahlil S. Philander and Bo J. Bernhard on the impact of casinos in the USA, and Lan, T on the emergence of gambling zones in Macau, indicated that the introduction of casinos positively affects the increase in nearby property prices.
“Casinos can serve as catalysts for economic development, driving up the value of local real estate through increased demand and investment,” it said.
“Wynn Resorts’ ambitious project in Ras Al Khaimah aligns with these findings, and is expected to significantly boost the local economy by attracting tourists, creating job opportunities, and promoting industry growth,” Realiste said.
The study also pointed out that by adhering to high sustainability standards, the project not only seeks to enhance the local economy, but also could potentially increase nearby property values, making it an attractive investment and living area.
“Furthermore, the scarcity of gaming zones in the Middle East region could positively impact the demand for such establishments.
“With only a few casinos in Lebanon and Egypt, there’s a potential market gap in the region that could be filled,” Realiste said.
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