UAE real estate is thriving in Ajman, Sharjah and Ras Al Khaimah are showing discerning investors it is worth looking beyond Dubai and Abu Dhabi for healthy returns.
With returns of more than 11.5% on real estate investments and rent hikes of more than 40% UAE property buyers can look to the northern emirates for profits.
Dubizzle’s highly anticipated Annual Property Market Report for the Northern Emirates has revealed that the region’s real estate markets have witnessed significant growth in 2023, with Ajman, Sharjah, and Ras Al Khaimah (RAK) at the forefront, according to the property platform.
UAE real estate in 2023
Based on primary data gathered from site visits and user behaviour throughout 2023, the reports released for each emirate have shown an impressive uptrend in both the sales and rental sectors, revealing a promising outlook for investors and homebuyers alike.
Haider Khan, CEO of dubizzle, said: “Our 2023 Annual Property Market Reports for Ajman, Sharjah, and Ras Al Khaimah showcase their emerging status as rising stars in the UAE property market.
“We’ve noticed consistent increases in nearly all villa and apartment categories, bolstered by the availability of modern amenities at competitive price points and timely completion of off-plan projects and other developments.
“Listings advertised in Sharjah and the Northern Emirates attracted over 25m page views in 2023, showing their appeal with property seekers in the UAE.
“With demand for housing and investment options rising across the UAE, these emirates have become prime opportunities for those wanting more competitive options with similar amenities and benefits.”
Ajman real estate in 2023
The Ajman property market experienced a significant surge in 2023, according to dubizzle’s dedicated report, showcasing the “quiet emirate’s” increasing appeal as a prime real estate destination, driven by its ongoing infrastructural developments, urban planning, and a variety of properties with desirable amenities.
It saw some of the most notable surges in rents, per square foot prices, and ROI figures, due to increased interest from investors and homebuyers.
Ajman Downtown leads the way as a prime apartment buying destination with a remarkable Return on Investment (ROI) of 9.44 per cent, a clear indicator of its growing popularity and value in the property market.
Al Yasmeen emerges as the most sought-after area for villa purchases with 6.15 per cent, with Al Zorah providing an impressive ROI of 6.99 per cent.
The rental market has shown a healthy uptrend, with annual apartment rents ranging from AED27,000 ($7,350) to AED 47,000 ($12,800).
Al Nuaimiya leads in apartment rentals with an average annual rent of AED27,000 ($7,350), and also ranks high for apartment purchases with an average sales price of AED 371,000 ($101,000).
Lucrative opportunities lay in the localities of Emirates City, Al Sawan and Al Amerah, which stand out as promising investment areas with ROIs of 8.87 per cent, 8.29 per cent, and 8.93 per cent respectively.
Villas in Al Yasmeen average an annual buying price of AED1.32m ($359,000), with a solid ROI of 6.15 per cent.
A notable 10.4 per cent increase in price per square foot for villas has been observed in 2023 in Al Yasmeen, while Al Rawda saw a 27 per cent increase in square foot price.
Al Zahya and Al Rawda followed closely, offering competitive prices and ROIs for villas. Al Nuaimiya and Ajman Downtown have been recognised for their apartment sales, with Al Nuaimiya also leading in apartment rentals.
Villa rents increased in Al Mowaihat (a high 40.63 per cent for 4bhk villas), and Al Zahra (almost 20 per cent), and Al Yasmeen, whereas apartment rents in Al Nuaimiya (over 53 per cent for studio flats), Al Rawda (15.38 per cent hike for 2bhk), Al Rashidiya, and Al Jurf have seen a rise, reflecting a dynamic rental market.
Ajman’s property market is evolving rapidly, offering diverse and lucrative opportunities for investors and homebuyers. The year 2023 was pivotal, with substantial growth in both the sales and rental sectors.
Sharjah real estate in 2023
Sharjah’s real estate market showed significant growth in 2023, as detailed in dubizzle’s comprehensive annual property market report.
Valued for its proximity to Dubai, the emirate has continued to attract a significant number of people, with an upward trajectory in both rental and sales prices for apartments and villas.
It also caters to a range of preferences and budgets, with certain areas emerging as particularly attractive for investment and residency.
Preferred neighbourhoods are Al Khan, Muwaileh, Al Tai, Al Jazzat, Al Nahda, and Al Qasimia, which list among the most sought-after among prospective tenants and buyers.
There has been a general rise in prices across the board, with apartments averaging from AED601,000 ($164,000) to AED1.01m ($275,000) in selling prices, and AED21,000 ($5,700) to AED45,000 ($12,000) in annual rents.
Al Khan leads as the most sought-after area for buying apartments, with an average asking price of AED948,000 ($258,000) and an ROI of 3.51 per cent.
Muwaileh and Al Majaz also emerged as popular choices with attractive ROIs. Al Majaz recorded the highest ROI for apartments at 6.24 per cent, while Al Sabkha topped the list for villas with a 6.23 per cent ROI. Muwaileh’s 3bhk apartment prices, meanwhile, saw a rise of 40.48 per cent.
Top areas for apartment rentals were Al Nahda (which also had a 15.38 per cent rent increase), Muwaileh, Al Qasimia, Al Majaz and Al Taawun, with Al Nahda leading due to its ideal location and reasonable rents.
Al Tai, Al Jazzat, Sharjah Sustainable City and Muwaileh are the most preferred neighbourhoods for villa rentals, with Al Tai offering an average annual rent of AED111,000 ($30,000), and annual rents rising by 18.75 per cent in Al Sabkha.
Sharjah Sustainable City broke on to the scene in a big way, with an ROI of 5.06 per cent, and offering spacious residences and modern amenities with a sustainable lifestyle.
Ras Al Khaimah real estate in 2023
The real estate market in Ras Al Khaimah (RAK) witnessed another year of impressive growth in 2023, while also displaying complex up-and-down trends.
Completion of off-plan projects and developments, coupled with the availability of modern amenities, has sustained RAK’s appeal in the eyes of investors, buyers, and tenants.
The preferred areas were Al Hamra Village, Mina Al Arab, and Al Marjan Island as the top choices for buying and renting properties.
In apartments, the average annual rent ranged from AED22,000 ($6,000) to AED42,000 ($11,400).
Al Marjan Island recorded the highest sales price for apartments at AED1.57m ($427,500) while Yasmin Village offered the highest ROI of 11.71 per cent.
Al Seer apartments had the highest rise in rentals overall, at 16 per cent. Among villas, Al Hamra Village saw the highest shift in average annual rents for villas at 10.34 per cent.
Al Hamra Village led as the most popular area for apartment purchases with an average sale price of AED656,000 ($178,600) and an ROI of 7.33 per cent.
Al Marjan Island and Mina Al Arab also emerged as preferred choices for buyers, with the former recording average villa sales prices of AED19m ($5.2m) and seeing a 35.33 per cent increase in its 3bhk prices.
Al Hamra Village also topped the rental market for both flats and villas, followed by Al Marjan Island and Al Dhait for apartments, and Mina Al Arab seeing interest for both flats and villas.
Al Hamra Village stood out once again, this time in the villa sales market, with an average price of AED3.68m ($1m).
Mina Al Arab and Al Marjan Island followed, showcasing the diversity and appeal of the villa market in RAK.
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