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The company plans to invest USD 272 million in building new hotels in Ras Al Khaimah over the next five years.
RAK Properties is targeting revenue of USD 109 million in 2021 as the as UAE’s property sector continues to recover from the crisis induced by the coronavirus pandemic.
The developer, that made a net profit of USD 30 million on revenue of USD 66 million last year, intends to sell 300 units at its two projects in Ras Al Khaimah – Marbella Villas and Bay Residence, said the company's acting chief executive Mohammed Al Tair.
In order to increase sales, it is offering various incentives including flexible payment plans as well as a waiver on service charges.
'In 2021, we are going to have bigger sales than last year. We achieved Dh240m last year despite the pandemic and this year it will be Dh400m-plus,' Al Tair said.
The developer of the USD 2.7 million master development Mina Al Arab reported a more than five-fold jump in net profit in Q1 2021 to USD 17 million as revenue grew three times to reach USD 33 million, compared with the same period last year.
It is expected that property prices in UAE will stabilize in 2021 as the economy recovers from a coronavirus pandemic-induced slowdown and government initiatives spur growth. According to the report by property consultancy Asteco issued last month, sales and rental prices in Ras Al Khaimah were flat quarter-on-quarter for the first three months of the year.
Al Tair said the property market is recovering as governments open up economies to boost growth.
In addition to that, new visa programs such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme to attract foreign professionals to UAE are expected to support the local real estate market.
To increase the number of units for sale, the company plans to launch a new residential tower as part of its Bay Residence project in Mina Al Arab as well as the second phase of Marbella Villas.
Moreover, RAK Properties is also active in the hospitality sector and is building at the moment two projects at Mina Al Arab: Intercontinental Hotel & Resort and Anantara Mina Al Arab Hotel & Resort. The Intercontinental Hotel is scheduled for opening in the second half of 2021, while the Anantara Mina Al Arab hotel will start operations in Q3 2022.
The developer aims to build one or two more hotels in the next five years involving a total investment of USD 272 million, Al Tair said.
So far, the company has built properties only in Ras Al Khaimah and Abu Dhabi, but as its chief executive says, it is 'always open for discussions' to build in other locations.
