RAK Properties Posts Dhs52m H1 Profit

Ras Al Khaimah-based real estate developer RAK Properties announced that it earned a net profit of Dhs52 million in the first half of 2014, up marginally from Dhs51 million earned in the first half of 2013.

The developer’s revenues amounted to Dhs149 million while total sales value reached Dhs234 million in the first six months of this year.

RAK Properties’ current total assets are valued at Dhs4.7 billion, it said.

The developer launched a number of new projects including Flamingo Villas and Lagoon Heights at Cityscape Global last year, cashing in on a booming real estate market in the UAE.

Flamingo Villas, its flagship project, comprises of 124 sea-view villas and is located on the coast line in Mina Al Arab. RAK Properties confirmed that construction works on the project began in the first half of 2014.

The company also launched the Bermuda Villas project, which is a new beachfront community consisting of 157 villas and townhouses, it said in a statement.

“The company’s strong performance for the first half of the year is a clear indication of the increasing confidence in RAK as a strategic place to build your business and your home,” said Mohammed Sultan Al Qadi, managing director and CEO, RAK Properties.

“We have also been carefully studying the country’s real estate market conditions, which prompted us to study launching new projects, which includes more residential developments and hospitality leisure projects. We are upbeat that the remaining half of 2014 will be very fruitful for us.”

Real estate prices across the northern emirates such as Ajman and Ras Al Khaimah saw an uptick in rents and property prices in 2013 and during the first half of 2014 as budget-conscious tenants from Dubai and Sharjah relocated there.

According to an Asteco report, rents for units across new master planned communities in Ras Al Khaimah rose two per cent quarter-to-quarter in Q2 2014, and were up 23 per cent from the same period last year.

Meanwhile, rental rates for a typical apartment in Ras Al Khaimah rose almost 12 per cent in Q2 2014 compared to the same period last year.