A booming tourism industry & stunning landscape makes the northern emirate the perfect location for a second home – but what do you need to be aware of?
Year round sunshine, white sands and stunning mountain scenery – it’s not hard to be sold on Ras Al Khaimah’s appeal as a second home or holiday home location.
This month we’ve been focusing on the UAE’s northern most emirate and currently one of the world’s fastest growing tourism hotspots. We’ve provided a list of some of the best things to see and do as a visitor, and analysed the current performance of the local property market for investors.
Ras Al Khaimah is a compelling destination for investors looking for real estate for dream family holidays, or as an asset that has the potential to provide strong monthly returns.
So if you’re considering making a purchase on the shores of the Arabian Gulf, here are three things that you should know before you part with your money:
Until 2002, investors from overseas were permitted from purchasing property in the UAE. But now any foreign national can purchase property in the country in government designated areas in each emirate.
In Ras Al Khaimah, the main developments where you can purchase real estate as a foreign national are Al Hamra Village and Al Marjan Island. The former is a luxury integrated community with over 3,500 existing residences, prestige hotels such as the Waldorf Astoria and an 18-hole golf course. Al Marjan Island is Ras Al Khaimah’s answer to the Palm in Dubai – a man-made island complex that extends into the sea, consisting some of the most highly sought after developments in the region.
It’s largely recommended that any property purchase is primarily completed with cash. You can apply for a mortgage from a local provider, but in 2013 the UAE Central Bank introduced a mortgage cap of 75% for expats and 80% for UAE nationals. (Seek independent financial advice before proceeding with any purchase).
As with any property investment, you should carefully consider all costs that you’re likely to incur. If you plan to let out your property, you could consider a fully managed investment or hiring a letting agent, where all maintenance responsibility and work tenanting your property is taken care of for you, particularly helpful if you’re overseas and will find it difficult to get to Ras Al Khaimah on a regular basis.
If you own property in Ras Al Khaimah, or indeed anywhere in the UAE, you will need to apply for a residency visa. These allow you to be able to stay in the country for as long as six months, and are renewed once you leave the Emirates.
This visa application costs 1,100 AED (£191), and there are certain requirements you must meet in order to be granted one:
Your property should have a value of at least 1 million AED (£173,684)
The deed of the real estate must be issued in the property owner’s name and this will be the same name on the visa
You should be able to prove you have a minimum monthly income of 10,000 AED (£1,736)
The property must be complete at the time you apply for the visa