CITYSCAPE: RAK real estate sector still growing

Rakeen managing director Ghassan T Youssef criticised greed in the development sector

The real estate market is still growing in Ras Al Khaimah, according to Rakeen managing director Ghassan T Youssef.

Speaking on the final day of this year’s Cityscape Dubai, Youssef explained, “The flow of property and prices never went crazy in RAK and our model adapted to markets. We never had all the hype.

“We never built the biggest or tallest developments, instead catering to real needs – shopping centres, hotels, residential towers…RAK is the industrial emirate and we provided real estate on the back of real GDP and industry,” said Youssef, going on to criticise greedy developers.

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

“If I buy a square foot of land for AED 150 and then spend AED 150 on infrastructure and AED 400 on construction, I’ll sell it on for AED 1,000 – that 10%, 12% or 15% is the normal margin for a developer. If I sell that square foot on for AED 5,000, that level simply isn’t sustainable, is it?”

And Youssef also pointed out that hospitality and tourism were now also driving the real estate and construction industries in Ras Al Khaimah.

“The northern emirates are the most beautiful, with the best weather too. RAK is relaxed and open with the most kind-hearted people. That is drawing interest from people who want to come across for a few days and want a place to call their own."

“Industry, tourism and hospitality will drive RAK real estate demand.”