Sharjah, Ajman attract tenants, investors with affordable prices

Inayat-ur-Rahman, Business Editor

The real estate markets in Sharjah and Ajman have 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.

Sharjah has recorded transactions worth Dhs 6.7 billion in Q1 2021, an increase of 84.9% compared to the same period in 2020, according to the Emirate’s Real Estate Registration Department.

As per the Department of Land and Real Estate Regulation in Ajman, the Emirate has registered Dhs 2.7 billion worth of real estate transactions in the first quarter of 2021. Similarly,

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

Commenting on the trends, the CEO of Bayut & dubizzle and Head of EMPG Mena, Haider Ali Khan told Gulf Today that the growing positive sentiment in Dubai and Abu Dhabi can also be seen in the Sharjah and Ajman property markets in the first half of 2021. Real estate transactions in both Emirates have been on the rise, and certain neighbourhoods have even seen an uptick in sales prices.”

“On Bayut & dubizzle, too, we’ve recorded upwards of 7 million sessions for properties in Sharjah and Ajman over the last six months alone. With these competitive prices and strong rental returns, we can expect demand to stay strong for the Northern Emirates real estate market in the coming months,” Khan added.

According to Bayut & dubizzle’s combined property market report, ready apartments in Sharjah have experienced an uptick in sales price-per-square-foot in the first half 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 per cent, from Dhs 714 to Dhs820.

Al Majaz has seen sales price-per-square-foot for apartments remain steady at Dhs 354, while Al Nahda and Muwaileh have recorded price increases between 3% to 8% in H1 2021.

Al Majaz has also continued to offer strong rental returns of 6.57% for apartments for sale, while Al Nahda has been yielding an average ROI of 5.1%.

Sharjah’s rental market has remained tenant-friendly in the first half of 2021, recording price fluctuations of under 11% 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% to 8%, averaging at Dhs16000 for studios, Dhs 21000 for 1-bed flats and Dhs 28000 for 2-bed apartments.

Prospective tenants have also shown an inclination towards Muwaileh, Muwailih Commercial, Al Khan, Al Qasimia, Abu Shagara and Al Mahatah for rental apartments in Sharjah.

 When it comes to 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% for villas in Sharjah.

For more details, read Bayut & dubizzle’s Sharjah Market Report for H1 2021.

As per Bayut & dubizzle’s analysis of property trends in Ajman, Ajman Downtown has remained the most popular choice with prospective buyers looking for apartments in the first six months of 2021.

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 Dhs 202 and Dhs 175 respectively.

On the other hand, apartments in Corniche Ajman have experienced a 6.35% increase in average price-per-square-foot, rising from Dhs 418 to Dhs 445.

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%, 9.62% and 9.61% respectively.

Consumer trends on Bayut & dubizzle 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%. Tenants can expect to pay Dhs 15000 for studios, Dhs 19000 for 1-bed and Dhs 28000 for 2-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%.

 When it comes to villa properties in Ajman, Al Yasmeen has emerged as the preferred choice among buyers, while Al Rawda has remained the firm favourite for rental villas. For investors looking to earn high returns, villas in Al Helio have been offering an average ROI of 6.06%, based on projected rental yields.