Sharjah, Ajman turn 'attractive property hubs for buyers, tenants'
SHARJAH, February 17, 2021
The real estate markets in Sharjah and Ajman have followed similar trends to the larger emirates of Dubai and Abu Dhabi in 2020, and stayed competitive for buyers, investors and tenants, according to the latest data released by leading property portals Bayut & dubizzle.
Attractive prices, in conjunction with timely government measures to support the real estate sector and wider economy, have helped to ensure the steady performance of property markets in the northern emirates.
As per the Department of Land and Real Estate Regulation in Ajman, the emirate reported real estate transactions totalling AED8.9 billion ($2.4 billion) in 2020, while Sharjah recorded a 10% year-on-year growth in transactions in the third quarter as per the Sharjah Real Estate Registration Department.
Both emirates have also continued to offer investors healthy ROI of up to 11% in certain communities, while the rental markets in Sharjah and Ajman have remained a hub for affordable housing.
On the Sharjah market, the report said the emirate remained tenant-friendly in 2020, registering price declines of under 15% for rental apartments in popular neighbourhoods.
According to trends observed on Bayut & dubizzle, the sales prices for ready apartments in Sharjah have exhibited moderate declines in 2020.
Sharjah’s leading developer Arada has also reported a 35% increase in sales last year, indicating strong buyer interest in the emirate’s off-plan market.
Prospective investors have turned to Al Majaz as their first choice in 2020, where the average-price-per-square-foot has declined by 6.5% to AED 371.2.
The centrally located neighbourhood of Al Nahda has seen price-per-square-foot for apartments remain largely stable at AED 422.8, while flats in Al Khan and Muwaileh have become more competitive, stated the report.
Al Qadisiya has been yielding a high return-on-investment of 11.3% for ready apartments for sale, followed by Al Gharb, which has been offering an average ROI of 8.2%, it added.
Bayut & dubizzle’s report said among the popular neighbourhoods in Sharjah, Al Nahda has emerged as the top choice for tenants in Sharjah, followed closely by the long-standing favourite Al Majaz.
The asking rents for apartments in Al Nahda have averaged at AED17,000 for studios, AED 25,000 for 1-bed apartments and AED33,000 for 2-bed flats.
Prospective renters have also shown interest in affordable suburbs such as Muwaileh and Muwailih Commercial, while established neighbourhoods including Al Qasimia, Al Taawun and Al Khan have also remained as popular choices.
When it comes to villa properties, buyers and investors have shown the most interest in Hoshi, while Sharqan has been the top choice for potential tenants. Barashi has been yielding healthy returns of 6.2% for villas, making the area a popular choice with investors keen to benefit from high return-on-investment.
On Ajman, the Bayut & dubizzle’s analysis said the Emirates City had ranked as the most popular area for apartment sales. The sales price-per-square-foot for ready apartments in Emirates City has averaged at AED 175.6 in 2020.
Central districts such as Al Rashidiya and Ajman Downtown have also seen price-per-square-foot become more competitive, boosting their popularity among buyers and investors, it stated.
In terms of ROI, apartments in Emirates City and Ajman Downtown have been yielding high returns of 9.7% and 9.5% respectively, it added.
The report said Al Nuaimiya has been the favourite for prospective tenants searching for apartments in Ajman, as per the data released by Bayut & dubizzle.
The average asking rents in Al Nuaimiya have seen moderate declines up to 10%, standing at AED15,000 for studios, AED19,000 for 1-bed apartments and AED29,000 for 2-bed flats.
Other central neighbourhoods such as Al Rashidiya and Al Jurf, as well as suburbs including Emirates City and Al Rawda, have seen modest reductions in rental costs under 13% for apartments.
Prospective buyers interested in villa properties in Ajman have shown the most interest in Al Mowaihat, said the statement.
On the other hand, Al Rawda has ranked as the top choice for potential tenants. For buyers keen to benefit from high return-on-investment, villas in Ajman Uptown have been offering an average ROI of 6.5% in 2020.
Haider Ali Khan, CEO of Bayut and dubizzle and head of EMPG, Mena said: "The UAE as a whole has been through an unprecedented year and Sharjah and Ajman have also not remained immune to the impact of the prevailing market conditions."
'With the market being as price sensitive as it currently is, prospective tenants and buyers have shown a lot of interest towards the more competitively priced properties in these emirates," stated Khan.
"While our overall traffic has exceeded 7 million sessions in a single month at the end of 2020, the traffic for properties in both Sharjah and Ajman has also been growing across the year on both Bayut & dubizzle by over 20%," he added.-TradeArabia News Service
