Are off-plan projects in Al Marjan Island in Ras Al Khaimah offering higher projected short-term rental yields than Dubai waterfront in 2026?

Off-plan projects in Al Marjan Island in Ras Al Khaimah are indeed offering higher projected short-term rental yields than Dubai waterfront in 2026. With Dubai property prices averaging AED 1,759/sqft in Q1 2026, up 12.5% year-on-year (Dubai Land Department), investors are increasingly looking to RAK for better returns. In contrast, Al Marjan Island off-plan projects offer rental yields of 6-8%, compared to Dubai's 3-5%. This is due to RAK's lower property prices and strong tourism growth, with a 240% YoY increase in RAK transaction volume in Q1 2026 (RAK Properties). The upcoming Wynn Al Marjan opening in Q1 2027, with over 1,500 rooms and a casino, is also expected to boost tourism and rental demand further.

Core data and context

Ras Al Khaimah's real estate market has been witnessing significant growth in recent years, driven by factors such as attractive property prices, strong tourism growth, and government initiatives to promote the emirate as a preferred investment destination. In Q1 2026, RAK Properties reported a transaction volume of AED 11B, marking a 240% YoY increase. This growth is expected to continue, with the upcoming opening of Wynn Al Marjan in Q1 2027, which will feature over 1,500 rooms, a casino, and a convention centre.

Source: Dubai Land Department, RAK Properties, ValuStrat Q1 2026

Deeper analysis / mechanics

The higher rental yields in Al Marjan Island can be attributed to several factors. Firstly, the lower property prices in RAK compared to Dubai make it more affordable for investors, allowing them to achieve higher returns on their investment. For instance, off-plan projects in Al Marjan Island are priced at AED 700–1,000/sqft, compared to AED 1,200–2,200/sqft in Dubai Marina (Dubai Land Department). Secondly, RAK's strong tourism growth has led to increased demand for short-term rentals, particularly in areas like Al Marjan Island and Mina Al Arab, which are home to popular tourist attractions such as the Ras Al Khaimah National Museum and the Al Hamra Marina & Yacht Club.

Furthermore, the upcoming opening of Wynn Al Marjan is expected to boost tourism and rental demand in the area, as it will attract both leisure and business travelers. The integrated resort will feature over 1,500 rooms, a casino, and a convention centre, making it a major draw for tourists and event attendees. This is expected to further drive up rental yields in Al Marjan Island, as the increased footfall will lead to higher demand for short-term rental properties.

Specific locations / examples with numbers

One notable example of an off-plan project in Al Marjan Island is Bay Views, which is currently 86.5% complete (RAK Properties). With prices ranging from AED 700–1,000/sqft, Bay Views offers investors an opportunity to capitalize on the higher rental yields in the area. Based on our Q2 2026 transactions, we have seen rental yields of 6-8% for off-plan units in Bay Views, which is significantly higher than the 3-5% yields typically seen in Dubai Marina and Bluewaters Island.

Another example is Hayat Island, where off-plan units are priced at AED 800–1,100/sqft. With rental yields of 6-8% and capital growth of +18% in 2025-2026 (ValuStrat), Hayat Island presents an attractive investment opportunity for those seeking higher returns. In comparison, Dubai's Palm Jumeirah and JBR areas, which are popular among investors, have seen rental yields of 3-5% and capital growth of +8-12% in the same period.

Risk factors / what buyers miss / bear case

While the higher rental yields in Al Marjan Island are undoubtedly attractive, there are certain risk factors that investors should consider. Firstly, the market in RAK is still relatively nascent compared to Dubai, and may be more susceptible to fluctuations in demand. This could impact rental yields and capital growth in the short term.

Secondly, the upcoming supply of new projects in Al Marjan Island and other areas of RAK could lead to increased competition in the rental market, potentially putting downward pressure on yields. Investors should carefully assess the supply pipeline and demand dynamics in the area before making a decision.

Lastly, investors should be aware of the differences in regulations and tenant rights between Dubai and RAK. While both emirates have implemented rent increase limits and other tenant protections, the specifics can vary. It is crucial for investors to familiarize themselves with the local regulations to ensure a smooth rental process and avoid potential disputes.

What to do next / practical steps

If you are considering investing in off-plan projects in Al Marjan Island, it is essential to conduct thorough research and consult with experienced brokers. At Sofia Sands Realty (RERA 41793), we hold direct allocation on Bay Views and Hayat Island, and can provide you with expert advice and tailored solutions to meet your investment goals. Reach out to us at sofiasandsrealty.ae for more information on the available projects and their potential returns.