At first glance, Al Marjan Island seems like a typical tourist destination but if you look closely, you will notice that this man-made archipelago is more than its scenic beauty. It checks all the boxes for a booming real estate destination and is touted to become the face of the UAE in the global real estate market in the future.
Despite its small size, it holds all the potential to give the big real estate empires of Dubai, Sharjah, and Abu Dhabi a run for their money. But what makes them so appealing to the eyes of real estate investors? Why is it preferred so heavily by foreign investors? Let us take a closer look into all the factors that make Al Marjan Island the go-to real estate destination of the UAE.
5 Major Factors that Make Al Marjan Island a Booming Real Estate Market
Al Marjan Island is located in the emirate of Ras Al Khaimah and is made of four coral-shaped man-made islands. It has gained significant attention over the past several years for its splendid landscape which is surrounded by azure waters. The breathtaking beaches and the avenues for entertainment and shopping on the island make it the perfect holiday destination.
But something shifted in the last few years as it steadily rose in the ranks of viable real estate markets of the UAE, and here are the major factors that led to its popularity among investors.
Favourable Geographic Position
Al Marjan Island gets major strategic benefits from its geographical positioning as it has quick and easy accessibility to Dubai and other UAE emirates, making business transactions immensely convenient. The location of the island not only provides a treat to the eyes but also makes it easy for a diverse range of industries to flourish. From manufacturing to logistics, entrepreneurs and conglomerates view it as a profitable platform to establish and expand their brands and businesses.
The Government of Ras Al Khaimah has also paved the way for enhancing the business climate of the island by initiating complete foreign ownership and tax-free zones. All these have vastly improved the opportunities to profit for investors and have led to a flourishing real estate market.
Booming Tourism Environment
The tourism industry of Al Marjan Island is its foundational backbone and it wouldn’t be an overstatement to say that this has opened the doors for the real estate market of the island to grow. With 7.8 km of stunning beaches and marvellous landmarks, tourists always have a field day on the island. And with the tourism industry being evergreen, this has grabbed the attention of major property developers to mark their presence on the island.
Tourism keeps the island relevant with the biggest names in the hotel industry opening their chains on the island, with the Wynn Resort soon to be functional as well. Similar to the off-plan properties of Dubai, top property developers are announcing residential and commercial projects of epic proportions regularly, keeping the market not only afloat but successful. All these keep the economy of the island, and the emirate, at large, stable and profitable. This ensures your investment is a viable one in the long run.
High Capital Appreciation
Al Marjan Island is not a huge island in terms of size. There is a limited supply of land but a huge demand for properties. This inverse ratio ensures that your real estate investment will have a huge capital appreciation as time goes on. As we stated above, tourism will be relevant always on the island and will keep other allied industries, including the real estate one, booming.
The high ROI (Return on Investment) of the properties also results from the favourable performance of the Gross Domestic Product (GDP) of Ras Al Khaimah in recent years. Real estate investors are bound to get huge capital gains from their investments on the island. The island generates huge employment, which brings a lot of settlers who look for rental properties. So, if you are thinking of renting out your property, the avenues for earning decent profit are skyrocketing as well.
Modern Urban Infrastructure
Despite its small stature, the island has left no stone unturned in making a spectacle of its infrastructure. The beautiful blend of the natural landscape with the modern infrastructure provides a sight to behold. Not only are the residential buildings on this island some of the most opulent ones in the country but the public landmarks and commercial buildings are an ode to top-notch luxury.
With the kings of Marjan Island building luxury residential projects, the overall architecture of the island is nothing short of a piece of art. Equipped with the most technologically advanced ideas and bespoke amenities, you will get the experience of the ultimate urban lifestyle when you invest in the properties here.
Eco-friendly Initiatives
Al Marjan Island is dedicated to the cause of sustainability and environmental conservation. This is extremely pivotal for its futuristic relevance as in future, the demand for properties that prioritize eco-friendly practices will be very high. As more attention is paid to climate change, the demand for properties that prioritize conscious efforts will be high and this island is filled with such properties.
The focus on waste management, water conservation, and the use of energy-efficient technologies make the properties of Al Marjan Island such as the Aqua Arc, futuristic and environmentally responsible. Even the government has made itself involved in it through the introduction of the UAE Blue Visa which rewards foreign nationals who make positive contributions to the environment.
To Conclude
Al Marjan Island is the future of the UAE real estate scene. Its promising features will keep the island relevant while contributing to the economy of the country. As such, investing in its real estate market is a smart choice for long-term capital gains.
With the booming tourism industry, the strategic advantage of its geographical location, relaxed taxation policies, eco-friendly practices, and modern infrastructural development, it is no surprise that it is the go-to real estate destination of the UAE.