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Wed 19 Feb 2020 01:46 PM

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Sharjah, Ajman 'strong contenders' in UAE's affordable homes market

Bayut says emirates shine in 2019 despite growing competition from bigger cities such as Dubai and Abu Dhabi

Sharjah, Ajman 'strong contenders' in UAE's affordable homes market
Ajman remains a strong market for affordable homes.

Despite stiff competition from the bigger emirates of Dubai and Abu Dhabi, both Sharjah and Ajman have remained strong contenders for affordable living in the UAE in 2019, according to real estate website Bayut.

Transactions have also gone up in the Northern Emirates cities, it said, adding that, according to the Sharjah Real Estate Registration Department, 61,357 transactions were recorded in 2019, an increase of 13.4 percent on 2018.

Bayut said when it comes to the popular locations to live in Sharjah and Ajman, areas such as Al Majaz, Al Khan, Ajman Downtown and Al Nuaimiya have retained their appeal over the course of 2019 with both buyers and tenants, thanks to prices becoming more affordable compared to 2018.

In Sharjah, the price trends for renting and buying apartments in Sharjah for 2019 were in line with the patterns seen in the neighbouring emirate of Dubai.

In Sharjah’s rental market, Al Majaz, Al Taawun and Al Nahda have held strong in 2019, with competitive prices ranging between AED17-20,000 on average for studios, AED25-28,000 for 1-bedroom units and AED33-37,000 for larger 2-bedroom units.

Similarly, for apartment sales, Bayut reported that Al Majaz, Al Khan, Al Nahda and Al Taawun have remained popular with buyers and investors with average price per square foot of AED381, AED430, AED352 and AED362 respectively.

The only area that has experienced an increase in price per square foot is Muweilah, rising by just over 6 percent to AED975 in 2019.

According to Bayut, Ajman has also sustained interest from buyers and tenants with prices becoming more competitive across 2019.

In the rental market, established districts such as Al Nuaimiya, Ajman Downtown and Al Rashidiya, which are closer to the centre of the city, have remained popular options. Prices across the board have decreased by an average of over 8 percent.

Ajman Downtown and Al Rashidiya have also dominated the sales segment, along with Emirates City. The price per square foot to buy apartments in Ajman ranges between AED200-500.

Bayut’s CEO, Haider Ali Khan, said: “Sharjah and Ajman closely follow trends in Dubai and Abu Dhabi. Similar results were observed throughout 2019 with prices declining in Sharjah and Ajman, however growth in terms of inventory and supply was also seen in these markets.

"The growth in Sharjah’s off-plan segment has enabled agencies and developers to capitalise on a wider profile of investors. Projects like Aljada and Sharjah Waterfront City have gained a lot of popularity with both local and expat communities. As these projects mature and attract more investors, the real estate market in Sharjah is expected to grow further in the coming months."

He added: "Ajman’s strategic move to open up the freehold market earlier on, has certainly proved beneficial. The expat-friendly freehold communities have continued to remain popular with residents, and newer developments such as Ajman Uptown are also capitalising on this trend by offering properties that are integrated with comparable facilities.”