Property transactions decline in RAK
10-May-2010 - Emirates Business 24-7
Property transactions decline in RAK
Realtors say transactions and listings continue to decline since 2009.
The number of transactions and new property listings with agents has declined in Ras Al Khaimah since the end of last year, realty agents said.
Mohanad Alwadiya, Managing Director, Harbor Real Estate, said: “We have not removed any listings for Ras Al Khaimah. However, we have not received any new listings for the past four months for the emirate. The fourth quarter of 2009 was the last time we concluded a transaction for a property in Ras Al Khaimah.”
He further said that the overall purchasing appetite of buyers has been very low due to the economic crisis and most of the stakeholders involved in the RAK property market have adopted “a wait and see” approach, hoping for the economic storm to clear out.
Laura Choueri, CEO, Choueri Real Estate, said: “There were many enquiries for the emirate as Ras Al Khaimah has a lot of opportunities for investors. However, the fourth quarter of 2009 was the last time we concluded a sales transaction in Ras Al Khaimah.”
Kosta Giannopolous, Manager-Residential Sales & Leasing, Better Homes said: “We get a few property enquiries for RAK each month.” The real estate agents, however, expect the market to gain momentum as the emirate has some promising developments.
Choueri said that while the Ras Al Khaimah market may not be as buoyant as Dubai, there are some very beautiful properties there which hold a lot of potential for investors. “As said, in the last quarter of 2009, there were lots of enquiries for one, two and three-bedroom apartments, yet those have not translated into sales.”
Alwadiya said: “Slowdown in new activities and progress announcements in the RAK property market have made it slide down in the investors’ top of mind awareness and consideration list. Further, lack of completed projects and limited finance options in RAK have become key decision-making variables in today’s market place which are hindering the ability of sellers to promote and sell their projects in the emirate.”
He said the market is witnessing an overall slowdown also driven by the migration of tenants to the more affordable areas in Sharjah and Dubai. “The rental prices have dropped by an average of seven per cent to eight per cent according to our estimates. When it comes to sale prices, we have witnessed a sharper drop mainly in the under construction/ off plan projects.
“Pick-up in the real estate sector of Ras Al Khaimah can happen but this must be complemented by a steady pace of construction progress, positive completion/success stories and a solid legal, marketing and operational framework that endorses the property market in RAK.”
Giannopolous said: “RAK has long been a place to escape the busy pace of Dubai. The developments in the emirate offer beautiful waterfront properties, such as Al Hamra Village and The Cove, which are already popular for weekend escapes and holiday homes.
Other projects of note include Mina Al Arab, developed by RAK Properties; and Bab Al Bahr, developed by Rakeen which will both become more attractive as they near their completion date; so now may be a great time to buy in RAK prior to completion and while these mega-projects and prices are affordable.”