Why Al Marjan Island is the Best Place for Short-Term Rentals: A High-Yield Investor’s Guide
Introduction
Short-term rentals in Al Marjan Island are emerging as one of the most profitable real estate investments in the UAE. With the upcoming Wynn Al Marjan Resort, rising tourism, and high rental yields, investors are increasingly turning to vacation rentals and Airbnb properties for strong ROI and passive income.
In this guide, we’ll explore:
✔ Why Al Marjan Island is a prime short-term rental market
✔ Projected rental yields & ROI compared to Dubai
✔ Occupancy rates, seasonality, and tourism trends
✔ Legal requirements & STR licensing in Ras Al Khaimah
✔ Best property types for Airbnb & short-term rentals
💡 By the end of this guide, you’ll know why Al Marjan Island is one of the UAE’s best locations for short-term rental investment.
1. Why Al Marjan Island is a Top Destination for Short-Term Rentals
Al Marjan Island is fast becoming one of the UAE’s top tourist destinations, attracting both holidaymakers and business travelers. This demand fuels a booming short-term rental market, providing property investors with strong rental income and high occupancy rates.
🚀 Key Drivers of the Short-Term Rental Market:
🏖️ Rising Tourism – Ras Al Khaimah welcomed over 1.2 million visitors in 2023, with growth projections exceeding 3 million by 2030.
🎰 The Wynn Effect – The $3.9 billion Wynn Al Marjan Resort, opening in 2027, will attract 5.6 million visitors annually, creating huge demand for vacation rentals.
💰 Higher Rental Yields Than Dubai – Short-term rentals in Al Marjan Island offer 6-9% net yields, compared to 5-7% in Dubai.
🌍 Less Competition, Higher Demand – Unlike Dubai, which has an oversaturated rental market, Al Marjan Island has fewer vacation rentals, allowing landlords to charge premium rates.
2. Rental Yields & ROI: Al Marjan vs. Dubai
Investors are increasingly looking at Al Marjan Island over Dubai due to lower property prices and higher rental yields.
| Location | Short-Term Rental Yield (%) | Average Property Price (AED per sq. ft.) | Occupancy Rate (%) |
|---|---|---|---|
| Al Marjan Island | 6-9% | 1,400 – 2,500 | 65-85% |
| Dubai Marina | 5-7% | 2,500 – 4,500 | 60-75% |
| Palm Jumeirah | 5-6% | 3,500 – 6,000 | 55-70% |
| Downtown Dubai | 4-6% | 2,800 – 5,000 | 60-75% |
💡 Takeaway:
- Al Marjan Island offers higher rental yields (6-9%) than Dubai’s luxury markets.
- Lower property prices make entry more affordable for investors.
- Higher occupancy rates (up to 85%) ensure consistent rental income.
3. Seasonality & Occupancy Trends
Short-term rental demand in Al Marjan Island follows seasonal trends linked to tourism peaks, business travel, and events.
📊 Peak & Off-Peak Seasons for Airbnb Rentals:
✔ Peak Season (October – April) → 85-95% occupancy rates 🏖️
✔ Mid-Season (May – June, September) → 65-80% occupancy 🌞
✔ Low Season (July – August) → 50-65% occupancy ☀️
Why It Matters:
✅ Investors can charge premium rates during high season.
✅ Mid-season stays driven by digital nomads & extended business travelers.
✅ Diversifying into long-term corporate stays can stabilize revenue in off-season months.
4. Legal Requirements & STR Licensing in Ras Al Khaimah
Investors looking to operate short-term rentals in Al Marjan Island must comply with Ras Al Khaimah’s vacation rental regulations.
✔ Steps to Legally Operate a Short-Term Rental:
1️⃣ Obtain a Short-Term Rental License from Ras Al Khaimah Tourism Development Authority (RAKTDA).
2️⃣ Register the property as a holiday home with the municipality.
3️⃣ Pay the required tourism fees & compliance costs.
4️⃣ Ensure the unit meets safety & furnishing requirements (fire alarms, guest safety measures).
5️⃣ Work with a licensed property management company (if you’re overseas).
💡 STR licensing is straightforward in RAK, making Al Marjan Island one of the easiest places in the UAE to set up vacation rentals.
5. Best Property Types for Short-Term Rentals in Al Marjan Island
The best-performing short-term rental properties are branded residences and beachfront apartments.
🏡 High-Demand Property Types for Airbnb:
1. Branded Residences (Nikki Beach, Address Residences, Rixos)
✔ Higher occupancy rates (70-90%)
✔ Premium nightly rates due to brand recognition
✔ Easier to market on Airbnb & Booking.com
2. Beachfront Apartments & Villas
✔ Best for luxury short-term stays
✔ Strong demand from high-net-worth travelers
✔ Higher capital appreciation potential
💡 Investing in well-located, fully furnished properties will maximize rental income.
Final Thoughts: Why Short-Term Rentals in Al Marjan Island Are a Top Investment
✅ Short-term rentals in Al Marjan Island generate 6-9% rental yields, outperforming Dubai.
✅ Tourism demand is rising, driven by Wynn Al Marjan Resort & Ras Al Khaimah’s tourism boom.
✅ Higher occupancy rates (up to 85%) provide consistent income.
✅ Less market saturation = stronger pricing power for landlords.
✅ Easier licensing process than Dubai.
📩 Want to invest in a high-yield vacation rental? Click here to Contact us today!
