Ajman 2019 End of Year Market Report: Competitive prices and high rental yields continue to attract buyers and tenants

Ajman has a thriving real estate market, with an abundance of freehold properties as well as off-plan investment projects that attract both locals and foreign investors. Owing to the reasonable prices in the market, properties in Ajman always remain in high demand. When it comes to the property prices in Ajman, costs have remained quite competitive, following suit from Dubai, Abu Dhabi and other property markets of the UAE, with most of the popular communities reporting decreases between 10-20% for both rent and sale.

For this year-end 2019 real estate report in the UAE’s smallest emirate, we have compared average property prices in Ajman from 2019 to those in 2018. To evaluate the performance of the top areas for sale we have compared the average price per square foot, while for rental properties we have analysed property prices in Ajman for each unit type. Bear in mind though, that prices are subject to change based on individual buildings depending on amenities and facilities provided. 

Areas such as Ajman Downtown, Al Nuaimiya and Al Rashidiya have been quite popular with investors and tenants this year too.  When it comes to the ROI, key areas such as Ajman Downtown, Emirates City, Al Nuaimiya and Al Zahraa have generated high returns, exceeding 8% rental yields.

Let’s take a look at Ajman property prices in 2019.

AJMAN DOWNTOWN IS THE MOST POPULAR AREA FOR BUYING APARTMENTS IN THE AJMAN REAL ESTATE MARKET

Ajman Downtown is an attractive prospect for investors looking to buy apartments in Ajman. Known for its expat population and excellent connectivity, the area is one of the key neighbourhoods of the emirate. The average price per square foot of area shows a decline of 17.1% in 2019 compared to the previous year from AED 285 in 2018 to AED 236 presently. This change in price is primarily driven by the increased supply from the abundance of off-plan properties in the area, some of which have also been completed and handed over while others are still going through the final phase of development.

The average price for studios in Ajman Downtown shows a decline from AED 200k in 2018 to AED 170k in 2019. Similarly, the price of 1 bedroom apartments in Ajman Downtown dropped from AED 280k to AED 250k while the asking cost of 2-bedroom apartments went from AED 380k in 2018 to AED 320k in 2019.

The second most in-demand neighbourhood to buy flats in Ajman is Emirates City, an area located between the two highways of the city. Emirates City witnessed a 23.4% decrease in average price per square foot, in comparison to the previous year.

The prices of studios in Emirates City show a slight decrease from AED 211k to AED 210k, while prices are still stabilising for the bigger units, due to the large supply of off-plan developments. 

Apart from these two areas, the family-friendly community of  Al Rashidiya too, offers healthy prospects for investment in terms of apartments in Ajman. The average cost of studios in Al Rashidiya is AED 310k while 1-bedroom apartments average at AED 440k. One can also invest in the family-friendly 2-bedroom apartments in Al Rashidiya for an average price of AED 585k.

Other popular areas that offer competitive prices for buying apartments in Ajman include the vibrant district of Al Sawan, Garden City, Al Nuaimiya, Corniche Ajman, Sheikh Maktoum Bin Rashid Street, Al Bustan and Al Helio.

AL NUAIMIYA TAKES THE LEAD WITH THE HIGHEST ROI IN AJMAN

Al Nuaimiya is a good choice for those interested in high rental yields from the real estate market in Ajman. It offers rental yields of up to 11%.

Following a close second, the Al Sawan neighbourhood offers an impressive 10% ROI on apartments for sale. Al Helio also boasts an ROI of 9.6%, leading to a high amount of interest from potential buyers.

Corniche Ajman with an 8.8% ROI and Garden City with 7.7% rental returns are also healthy options for real estate investors in Ajman. 

AL NUAIMIYA TOPS THE LIST OF AREAS POPULAR FOR RENTING APARTMENTS IN AJMAN

One of the reasons why Al Nuaimiya offers such a high ROI is the fact that it is one of the most consistently popular areas to rent flats in Ajman. The area has stayed on top for Ajman apartment rentals throughout 2019 and attracted more tenants with increased affordability. Compared to 2018, there is a decrease in the average asking price of studios by 8.3% and 1-bedroom apartments by 16%. Similarly, the prices of renting 2-bedroom apartments exhibit a 5.7% decline. One can rent studios in Al Nuaimiya for an average price of AED 16.5k while 1-bedroom apartments in Al Nuaimiya can be rented for an average of AED 21k. For people with larger families, renting 2-bedroom flats in Al Nuaimiya can be a feasible option too with prices averaging at AED 33k.

Following Al Nuaimiya in the list of places for renting apartments in Ajman is Ajman Downtown. The studio prices in the area decreased by 11.1% compared to the last year, while 2-bedroom and 3-bedroom apartments show a decline of 18.5% and 16.2% respectively. The average price of studios in Ajman Downtown is AED 16k while 1-bedroom flats in Ajman Downtown average at AED 22k. If you are looking for larger units, 2-bedroom flats are available for an average price of AED 31k.

The centrally located Al Rashidya and Al Rawda, are the other popular communities to rent flats in Ajman, followed by Al Jurf, Al Sawan, Garden City and Al Mowaihat. Rental prices in Ajman have largely gone down by 8% to 20%, creating better opportunities for tenants to negotiate good deals and upgrade to larger units. 

Let’s now take a look at the popular communities to buy and rent villas in Ajman.

MOST POPULAR AREAS TO BUY AND RENT VILLAS IN AJMAN

When it comes to the most popular villa communities to invest in Ajman, Al Mowaihat tops the list, offering a host of amenities to prospective buyers. The community lies close to the Sharjah-Ajman border and is a few minutes away from the Sheikh Mohammed Bin Zayed Road (E311). It is also home to a few supermarkets, clinics and a community mall, making it easier to fulfil residents’ everyday needs. This has contributed to the area’s consistent popularity with those looking at villas for sale in Ajman. As per current listings, the average price to buy villas in Al Mowaihat ranges between AED 1M to AED 1.5M. 

Al Rawda is the second most sought-after area for investing in villas in Ajman. It is a well-connected area with a bus network, supermarkets and health care centres. The average price of 3-bedroom villas in Al Rawda is AED 1M, while 4-bedroom houses average at AED 1.1M. Investors can also think of buying 5-bedroom villas in Al Rawda for an average price of AED 1.5M.

Al Yasmeen ranks third while Al Helio secures a fourth spot in the list of areas popular for sale villas in Ajman. Each of these places offers easy access to amenities and a less crowded environment to live in. Various restaurants, schools, places of worship and healthcare centres are located near these two family-friendly communities in Ajman. The cost of Al Yasmeen villas ranges between AED 900k to AED 1M while investors can buy Al Helio villas for an average price of AED 1M to AED1.1M.

According to the current data, Al Zahraa, Al Hamidiya, Al Jurf, Musherief, Al Zahia and Masfoot have also emerged as the attractive investment areas in 2019.

AL ZAHIA HAS THE HIGHEST ROI

Al Zahia surpasses all other areas, offering a 10% ROI based on rental yield. While this area offers good ROI for those looking to invest in Ajman villas, other communities such as Al Yasmeen, Al Rashidiya and Al Hamidiyah also yield high returns of up to 6.7%, 5.4% and 5.3% respectively.

AL RAWDA IS THE MOST PREFERED CHOICE TO RENT VILLAS IN AJMAN

Al Rawda is the most popular area to rent villas in Ajman. The average cost of 3-bedroom houses in Al Rawda is AED 55k while 4-bedroom villas can be leased for AED 65k. Prospective tenants can also look at the 5-bedroom villas in Al Rawda which have average asking prices of AED 80k.

Al Mowaihat is another community that consistently garners interest from tenants. The family-friendly area ensures a comfortable lifestyle with a variety of houses ranging from 3 to 7-bed configurations, making it easy for tenants to choose options that best suit their needs. Renting houses in Al Mowaihat costs between AED 55k and AED 80k.

Al Jurf is the third most searched area for renting villas in Ajman. Connected to Al Ittihad Street, the place makes commuting easier for the potential tenants. The rent of villas in Al Jurf averages between AED 75k to AED 97k.

Next on the line-up of areas popular for renting villas in Ajman is Al Rashidiya followed by Al Nuaimiya. 

Besides the top areas, communities such as Al Hamidiyah, Musherief, Al Raqib, Al Zahraa and Al Bustan are also popular with tenants.

TOP OFF-PLAN PROJECTS IN AJMAN REAL ESTATE

MOST POPULAR OFF-PLAN PROJECTS IN AJMAN

Off-plan properties have a strong foothold in Ajman real estate. One of the most popular among these is the VIP Villa project in Ajman Uptown. This could be due to the fact that the area is located along Sheikh Mohammed Bin Zayed Road (E311), a major highway in the UAE, offering accessibility and connectivity. The community caters to those looking to make a sustainable investment in off-plan villas in Ajman.

Another great off-plan project is Paradise Lakes in Emirates City. The freehold community features a variety of residential apartments for sale in Ajman. 

A serene residential community with healthcare, retail and educational amenities, Al Amerah is also a good place for off-plan investments in Ajman. Offering a wide assortment of apartments, its off-plan project Al Mazraa Tower is an attractive prospect worth investing in.

Haider Ali Khan, CEO of Bayut, commented on the performance of the Ajman property market: 

“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. This year, there have been several handovers in both cities, including reputed projects such as Al Zahia and Nasma Residences in Sharjah, and the Ajman Corniche Residence in the UAE’s smallest emirate.

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. The Sharjah government announcing their highest annual budget so far, is a pretty promising sign, clearly showing that there is a consistent effort towards bringing in more development to the emirate.

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. These new projects also offer the added security of living in a gated community, a big factor that contributes to the decision making of a lot of homebuyers from different nationalities, thus fulfilling the needs of a more global audience.”

And that brings an end to Ajman Market Report. If you want to know how property trends fared for other real estate markets in the UAE, check out the Abu Dhabi Report for 2019.

Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Ajman.