What are your plans for relocating to RAK? What is the standard cost structure, and how does it differ from Dubai and Abu Dhabi? Let it tear it down to give you a better view.
Introduction
One of the seven emirates, Ras Al Khaimah is already heading toward stepping up as the cheaper version of Dubai or Abu Dhabi. Besides the constantly developing framework of inhabitants, natural beauty and a laid-back way of living make it a rather enticing place in terms of affordability but still quite comfortable.
Housing Costs
One good thing about the accommodation here in Ras Al Khaimah is that it is slightly cheaper than the Cost of living in Dubai and Abu Dhabi.
- Studios: Establishing a studio for an investor in RAK takes an average of AED 200,000 – AED 300,000.
- Apartments: One-bedroom apartments would range from AED 350,000 to AED 500,000.
- Villas: Prices of RAK-based villas start at AED 1,000,000 and go up to a maximum of AED 3,000,000.
How do these prices compare against Dubai and Abu Dhabi? Prices in Dubai for comparable properties are easily double or triple those here, more if they’re in a premier location. Studio apartments in Downtown Dubai average AED 1,000,000, with villas in Palm Jumeirah often selling for well above AED 10,000,000.
Some factors contributing to the variation in housing costs within RAK include location, available amenities, and size. Due to their location and luxury amenities, property prices in waterfront communities, such as Mina Al Arab or Al Hamra Village, are generally expected to be higher.
Transportation Costs
RAK has cheap transportation facilities available.
- Public Transport: The city of RAK, although without a metro, is well facilitated with buses and taxis at one’s service. A one-way ticket by bus would cost about AED 5, while a taxi ride starts from AED 3.
- Car Ownership: No metro exists, so RAK’s car ownership is very high. The average mid-range car buying price may be around AED 60,000, and insurance may fall between AED 1,200 and AED 2,000, to be paid annually. However, the fuel price seems low, as the average petrol cost is around AED 2.5 per liter.
How does this figure compare with the cost of living in Dubai and Abu Dhabi? In the bigger towns, the cost of getting about can be more significant because of larger public transit frameworks and higher living costs.
Food and Groceries
In RAK, one can quickly go out, dine in, and do grocery shopping quite affordably.
- Restaurant Meals: Fast food outlets AED 20 per meal, casual dining AED 50, fine dining AED 150 per person.
- Groceries: This could be provided by AED 300 per week grocery shopping, catering to a small family’s needs, fresh produce, and some imported items.
Want to save some money on food? Shop in open markets.
Utilities
Utilities in RAK are generally affordable.
- Electricity and Water: Costs range from an average of AED 300 for any small apartment per month.
- Internet: Fast speed costs about AED 300 per month.
In comparison, utilities are more expensive than living in Dubai and Abu Dhabi. For example, electricity and water bills for a similarly sized apartment in the two more significant cities would fall between AED 400 and AED 500.
Entertainment and Leisure
RAK offers a wide range of various entertainment and leisure activities at relatively affordable prices.
- Entertainment: These include cinema, where tickets cost approximately AED 35; theater/concerts start from AED 100 to AED 300.
- Leisure Activities: Gym Memberships cost around AED 200 a month, while sports clubs or hobbies vary according to the activity.
Though Dubai and Abu Dhabi offer numerous modes of entertainment and leisure, one can lead a balanced life at less cost than these emirates since the RAK entertainment activities are not that expensive.
Overall Cost of Living
Generally, RAK is cheaper than other cities in the UAE.
- Cost of Living Index: It will also be much lower than Dubai and Abu Dhabi indices, making the city massively appealing to those looking for a more affordable way of life.
- Salaries: In general, except for Dubai and Abu Dhabi, salaries in RAK remain relatively low. As earlier indicated, however, this capacity is much offset by lower income levels as other essential costs, such as the cost of living, are relatively low. A mid-level professional is likely to earn an AED of 12,000 per month.
Need to learn how to budget like a pro and cut down on some of those expenses in RAK? Here are some tips:
- Housing: Choose areas with the most good amenities but at more affordable prices.
- Transportation: Use public transport whenever possible, and maintain a car if you have one well to avoid high repair costs.
- Food: Obtain local market supplies and enjoy cooking at home to save some money that may be spent trivially on food.
- Utilities: Be mindful of the consumption of energy to keep utilities low.
Conclusion
Are you suitable for Ras Al Khaimah? With even comparatively lower costs of living, natural beauty, and construction still in progress, RAK looks more feasible for investments than the high prices in Dubai and Abu Dhabi. It is obvious that if one aims to make money or simply dreams of a less stressful life, there is much to do in RAK.
Ready to make the move? Understanding the cost of living will help you plan better and wring out the best from this emerging emirate.
For professional advice on the ideal property investment in RAK, TopLuxuryProperty deserves to be contacted. With extensive experience in satisfying the diverse needs of several communities, their consultation services will appropriately guide you through the process and help you make an investment decision with minimal risk.
