Average residential rental rates in freehold locations in Ras Al Khaimah have experienced a minor dip of around 1 percent during the first quarter, according to CBRE.
Its Q1 2017 RAK MarketView report said that rents in areas, including Al Hamra Village and Mina Al Arab, fell by around 5 percent annually.
With around 1,440 new units at the Pacific project on Al Marjan Island expected to be delivered in phases over the coming quarters, there could be further deflationary pressures on the horizon for RAK’s residential apartment market, it added.
The situation is likely to be compounded by rising supply levels, and subsequent rental declines, in the Dubai and Sharjah markets, which could also have a knock-on effect on housing in the emirate.
Mat Green, head of Research & Consulting UAE, CBRE Middle East, said: “Despite the softening market conditions, it is likely that RAK will actually see an increase in the number of new residential developments under construction, with a number of new mixed-use developments currently being planned for masterplan locations such as Al Marjan Island.”For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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