Sharjah, Ajman remain affordable as prices continue to fall

New report shows Q1 price declines across both cities but return on investment remains strong
Sharjah, Ajman remain affordable as prices continue to fall
The property markets in both Sharjah and Ajman have grown substantially in recent years, with reputed builders such as Eagle Hills exploring options.
By Sam Bridge
Wed 17 Apr 2019 02:07 PM

Both Sharjah and Ajman remain affordable alternatives for buying and renting properties in the UAE, according to real estate portal Bayut.com.

Prices have dropped on average across popular districts for both emirates, but return on investment (ROI) has remained high, reaching up to 7 percent in Sharjah and over 11 percent in Ajman for certain neighbourhoods, Bayut’s Q1 market reports revealed.

In Sharjah, price trends for Q1 showed that apartments have mostly witnessed minimal decreases between 2-6 percent for both sales and rentals, with prices staying stable in certain areas.

According to Bayut’s data, larger apartment units for sales in popular locations like Al Majaz and Al Khan have seen price declines of up to 6 percent while the most significant rental price changes have included decreases around the 11 percent mark in Abu Shagara and Al Khan.

According to search trends, Al Majaz is most popular with investors to buy apartments in Sharjah but potential tenants turn to Al Nahda as their first choice for renting apartments in the emirate.

When it comes to villas in Sharjah, the area of Al Sabkha generated the most searches by both investors and renters, Bayut said.

For apartments in Ajman, the overall price trends for both sales and rents show marginal declines between 1-6 percent with prices remaining stable in many areas.

For apartment sales, the only significant declines are at the 7-8 percent margin for units in Garden City and Al Sawan while the most significant rental decreases are for units in Ajman Downtown, Al Rashidiya and Al Jurf, where prices have gone down by an average of 6 percent.

In terms of popularity, Ajman Downtown has received the most interest from investors while for apartment rentals, Al Nuaimiya retains the top position in Q1.

For villas in Ajman, Al Mowaihat is the most popular among investors whereas tenants are most interested in Al Rawda.

Haider Ali Khan, CEO of Bayut, said: “The property markets in both Sharjah and Ajman have grown substantially in recent years, with reputed builders such as Eagle Hills and Emaar exploring options here. Over the first quarter of 2019, both Sharjah and Ajman present a lucrative opportunity for investors.

"From a rental perspective as well, the combination of reasonable rents and easily accessible schools makes both these emirates extremely attractive options for families in the UAE.”

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