Sharjah, Ajman continue to attract tenants, investors

Date: Aug 03, 2021

The real estate markets in Sharjah and Ajman continued to record stability in sales and rental prices in the first half of 2021, according to Bayut & dubizzle.

“Affordable prices, family-friendly amenities and healthy rental yields have led to a growing demand for real estate in the Northern Emirates. Sales prices in both Sharjah and Ajman have increased or remained steady in most of the popular locations while rental prices have remained reasonable,” said the H1 2021 property market report released by Bayut & dubizzle.

Ajman registered Dh2.7 billion worth of real estate transactions in the first quarter of 2021, as per the Department of Land and Real Estate Regulation. Similarly, Sharjah has recorded transactions worth Dh6.7 billion in Q1 2021, an increase of 84.9 percent compared to the same period in 2020, according to the emirate’s Real Estate Registration Department.

“Sharjah and Ajman have also continued to offer strong return-on-investment of up to 10 percent for villas and apartments, while the rental market in both emirates has remained competitively priced in H1 2021,” said the report.

In Sharjah, ready apartments experienced an uptick in sales price-per-square-foot in the first half of 2021, while in Ajman, Downtown has remained the most popular choice with prospective buyers looking for apartments in the first six months of 2021.

Apartments in Al Khan have been the top choice for investors in H1 2021, with average price-per-square-foot rising by 14.9 percent, from Dh714 to Dh820. Al Majaz has seen sales price-per-square-foot for apartments remain steady at Dh354, while Al Nahda and Muwaileh have recorded price increases between 3.0 percent and 8.0 percent in H1 2021. Al Majaz has also continued to offer strong rental returns of 6.57 percent for apartments for sale, while Al Nahda has been yielding an average ROI of 5.1 percent.

Sharjah’s rental market has remained tenant-friendly in the first half of 2021, recording price fluctuations of below 11 percent for apartments in popular neighbourhoods.

Al Nahda has been the most preferred choice for tenants in search of rental apartments, followed closely by the waterfront neighbourhood of Al Majaz. The asking rents for flats in Al Nahda have seen minor declines between 4.0 percent and 8.0 percent, averaging at Dh16,000 for studios, Dh21,000 for one-bed flats and Dh28,000 for two-bed apartments.

In the category of villas for rent and sale in Sharjah, Al Tai has been the top choice for potential tenants and investors in H1 2021. According to Bayut & dubizzle’s half-yearly report, Al Gharayen has been offering high average ROI of 6.18 percent for villas in Sharjah.

In Ajman, the average price-per-square-foot for ready apartments for sale in Ajman Downtown and Emirates City has remained steady in H1 2021, averaging at Dh202 and Dh175 respectively. On the other hand, apartments in Corniche Ajman have experienced a 6.35 percent increase in average price-per-square-foot, rising from Dh418 to Dh445.

“Investors looking to benefit from high rental returns on apartments should consider Garden City, Ajman Downtown and Emirates City, which have been yielding average ROI of 9.83 percent, 9.62 percent and 9.61 percent respectively,” said the report.

Consumer trends reveal that Al Nuaimiya has remained the most popular choice among prospective tenants for rental apartments in Ajman. In H1 2021, the asking rents for flats in Al Nuaimiya have experienced slight decreases of up to 4.0 percent. Tenants can expect to pay Dh15,000 for studios, Dh19,000 for one-bed and Dh28,000 for two-bed apartments in Al Nuaimiya. Other centrally-located neighbourhoods such as Al Rashidiya, Ajman Downtown and Al Jurf, as well as suburbs such as Al Rawda and Emirates City, have seen rental prices for apartments remain largely steady in H1 2021, recording minor declines of under 6.0 percent.

SOURCE: Khaleej Times