Why Should You Invest in Al Marjan Island?
The UAE is a land of ever-development that will never tire of delivering path-breaking advancements through the plethora of high-end places for you to invest in. One such area that has emerged as a bona fide investment-worthy place in the past few years, owing to the numerous benefits it provides, is undoubtedly Al Marjan Island.
This man-made archipelago has been creating quite the waves in the real estate market of the nation and has been deemed by industry experts as the next big hotspot for investments. But what exactly makes it so lucrative? Why investing here will do you well in the future? Why should you look into the properties in this area for a wise investment?
We search for the answers to these questions and more in this space as we explain why you should consider this area for your investment.
7 Reasons to Invest in Al Marjan Island
From its strategic location to its booming tourism industry, Al Marjan Island holds immense potential and endless possibilities that make it a highly sought-after area for investments. The primary reasons for investing here are as follows.
Strategic Positioning
Al Marjan Island in Ras Al Khaimah benefits hugely through its geographical location, which pays high dividends for strengthening its strategic positioning. The fact that it offers easy accessibility to Dubai and other emirates in the UAE elevates its appeal.
Henceforth, the apt location of the area facilitates the growth and flourishing of a bunch of industries, including manufacturing, services, and logistics, thanks to how easy it is to export and import goods from here.
Go Green Initiatives
The Government of Ras Al Khaimah has focused heavily on several green initiatives to include conservation and sustainability at the forefront of the development of Al Marjan Island. Despite featuring top-notch industrial developments, the archipelago has not shied away from prioritising eco-friendly practices.
The low carbon footprint, along with the energy-efficient technologies, waste management, and water conservation practices that are followed in Al Marjan Island, speaks for conscious and responsible efforts. With each passing year, the demand for green living will only increase. This would make this area high in demand for local as well as foreign investors.
360-Degree Waterfront Living
Being surrounded by azure water, the waterfront residences of Al Marjan Island offer an uninterrupted view of the sea and access to splendid white sands. The area boasts some high-end residential properties such as Aqua Arc, which offers 360-degree waterfront views that are too good a deal to pass on.
It truly is a testament to coastal living in one of the most chic nations of the world. With a variety of residential living units – ranging from luxurious apartments to exotic villas, from magnificent penthouses to opulent townhouses, you get the best of waterfront living on the islands. Some of the most anticipated residential projects in the UAE – Pelagia, Aquino, Acacia, Aqua Maya, and La Perla - are all based on Al Marjan Island.
High Capital Appreciation
Since this is a rapidly developing area, the creation of landmark projects has contributed to heightening the capital appreciation of properties. Both residential and commercial properties offer high capital gains as well as rental yields, making it the perfect place for investors to invest their capital.
Additionally, the Gross Domestic Product (GDP) of Ras Al Khaimah has witnessed high performance in recent years, which speaks volumes about the potential that this place offers for investors.
Favourable Business Environment
The Government of Ras Al Khaimah has left no stone unturned in enhancing the business environment of Al Marjan Island. In an effort to foster healthier relationships with foreign nations and attract foreign investors, a bunch of positive initiatives have been implemented.
Putting together tax-free zones, relaxing the regulations for foreign ownership, and streamlining the processes of business registration have improved the business climate of the region, thereby attracting entrepreneurs and businesses to invest in the region.
Dominant Tourism Industry
It shouldn’t come as a surprise that Al Marjan Island is one of the most breathtaking locations in the country. It is a mesmerising archipelago made of four man-made islands – Breeze, Treasure, Dream, and View – each with its own distinct beauty. Needless to say, this is one of the most-visited places in the UAE.
The hospitality sector of the area is one of the best, not only in the Middle East but in the entire world, as the biggest who’s who of the hotel industry have left their imprints on the island through their branded hotels and resorts. This brings us to our next point.
Lively Event Hub
The presence of top-rated hotels and resorts in the archipelago has resulted in the area turning into a haven of leisure and recreational pursuits for both tourists and residents alike. From adventure sports to water activities, you will never have a dull moment on Al Marjan Island. The shopping and retail outlets, along with world-class restaurants, further elevate the charm of the place.
This pristine destination offers everything you need for a stunning weekend escapade, which explains why it is at the top of the list of investment-worthy areas in Ras Al Khaimah. The fact that you will get a family-friendly neighbourhood in every corner makes it the perfect place for families to spend a holiday in, as well as to settle down.
To Conclude
Al Marjan Island checks all the boxes that make for a smart investment. Its geographical location, compliance with eco-friendly policies, tourism sectors, and high capital appreciation of its marvellous waterfront residences sum up the allure of this magical place.
It is no surprise that it has cemented itself as a highly sought-after, promising real estate destination in the UAE. It has rightfully captured the attention of investors from far and wide for all the perfect reasons. And its real estate market is only going to boom even further in the near future.
FAQs
Can foreigners invest in Al Marjan Island?
Yes, foreigners can invest in Al Marjan Island since it is a freehold area where foreign citizens can get 100% ownership of properties.
What kind of ownership/foreign-buyer policies apply?
Foreign buyers get 100% foreign ownership in designated freehold areas in Al Marjan Island, which means investors of any nationality can buy property with full ownership rights on the island.
What types of property are available on Al Marjan Island?
There is a diverse range of properties available on Al Marjan Island. This includes apartments (from studios to 5-bedrooms), penthouses, townhouses, and villas, along with commercial properties, with options available for both off-plan and readymade purchases.
What are the entry prices and relative value compared to Dubai?
The entry prices for properties in Al Marjan Island are comparatively more affordable than in Dubai, with the average prices being around 30% lower in the former.
While Al Marjan offers apartments averaging AED 1200/sq. ft. and villas AED 1500/sq. ft., Dubai offers them for AED 1900/sq. ft. for apartments, and AED 2700/sq. ft. for villas. However, please note that this can vary depending on location and property type. The difference in prices denotes the more mature market of Dubai versus the emerging status of Al Marjan Island.
What kind of rental yields or returns can investors expect?
Investors can, on average, expect rental yields of around 15% ROI (Return on Investment), with some projects offering 7.5% to 12% depending on the type of leaseback packages.
Is the market for off-plan properties favourable on Al Marjan Island?
Yes, the off-plan market in Al Marjan Island is considered extremely favourable due to the strong potential for capital appreciation and booming tourism.
Can investment in Al Marjan Island lead to residency or other visa benefits?
Yes, investing in a property or group of properties on Al Marjan Island can lead to various residency benefits, such as the possibility of the 10-year Golden Visa for investments over AED 2 million, and a 2-year investor visa for investments over AED 750,000.
Is Al Marjan Island suitable for short-term investors?
Yes, Al Marjan Island is suitable for short-term investors because of its growing tourism market and potential for high rental yields from short-term rentals.
Is the island fully developed?
Al Marjan Island is still developing, but it is developing at a rapid pace with high-scale projects being announced and constructed regularly.
Can I resell my property before it is completed?
Yes, you can generally resell your property in Al Marjan Island before it is completed, subject to specific conditions set by the developer you are buying from and the local real estate regulations in Ras Al Khaimah.