Ajman property market report for Q3 2019: Ajman remains a largely stable market for investment

With the third quarter of 2019 coming to an end, it’s time to evaluate the highs and lows of property prices in Ajman. Similar to our Dubai Property Market Report of Q3 2019, this report will evaluate and account for the sale and rental price trends for properties in Ajman over the past three months. This report on Ajman property price trends compares prices for Q3 with property prices in Q2 2019.

For an accurate representation of sales trends for apartments and villas in popular areas, property prices in Ajman are compared on the basis of average price per square foot. While the average price per square foot is a better indicator of sale price fluctuations in the market, it is influenced by several factors. Variations in the average price per square foot may be due to the influx of new off-plan properties, property type, access to amenities and other pivotal factors including demand.

On the other hand, prices for rental properties in Ajman are compared on the basis of individual cost of property types available in the prominent neighbourhoods of the emirates. Let’s look at how property prices in Ajman fared for Q3 2019 when compared to the price trends for Q2.

TRENDS SEEN IN BAYUT’S AJMAN REAL ESTATE MARKET REPORT FOR Q3 2019

Property prices in Ajman for Q3 2019 reveal a good amount of stability. The sales prices for apartments in Ajman witnessed modest declines while rental prices showed moderate changes, with both increases and decreases within the 10% mark. 

With higher ROIs, stable market conditions, greater affordability and attractive housing options, Ajman has gained traction as a promising hub for real estate investments in the UAE.

Al Nuaimiya, Ajman Downtown and Al Rashidiya remain popular among tenants. Investors and buyers are also looking at similar areas; Ajman Downtown, Garden City and Al Rashidiya are the most prominent choices with those looking to purchase flats in Ajman. Other notable areas include Emirates City and Al Mowaihat.

PROPERTY PRICES IN AJMAN FOR BUYING APARTMENTS

TOP AREAS FROM THE AJMAN REAL ESTATE MARKET FOR INVESTING IN APARTMENTS

Ajman Downtown is the most popular area among buyers and investors for the purchase of apartments in Ajman. The price per square foot in the area showed a decline of 4.7% from AED 236 in Q2 2019 to AED 225 now. This could be attributed to the fact that Ajman Downtown is popular for off-plan investments, some of which have recently been completed and handed over. The cost of studios for sale in Ajman Downtown fell from AED 170k in Q2 of 2019 to AED 160k in Q3. For the same time period, 1-bed flats for sale went from AED 255k to AED 250k, while the price for 2-bed units for sale remained unchanged.

The second most searched for area for buying apartments in Ajman is Garden City. This suburban area is an emerging real estate market for investors. Maintaining a steady pace, the average price per square foot in Garden City witnessed a negligible drop of 0.7%. The highest visible impact is reflected in the price of 2-bed apartments for sale in Garden City, which went from AED 250k in Q2 to AED 240k in Q3. The prices for studios display stability, averaging at AED 140k, while 1-bed apartments for sale are priced AED 160k, on average.

Apart from the top two areas, the waterfront neighbourhoods of Al Bustan and Ajman Corniche alongside the properties in Emirates City and Sheikh Maktoum Bin Rashid Street have attracted investors in search of flats for sale in Ajman. 

Other popular areas that offer attractive property prices in Ajman for apartments on sale include the Al Sawan neighbourhood, Al Nuaimiya and Emirates Lake Towers. Apartment owners in these neighbourhoods would be happy to know that that average price per square foot for their properties have increased, with apartments for sale in Al Nuaimiya showing the highest increase of 8.3%. This could be attributed to increased demand, thanks to the area’s abundance of amenities. 

APARTMENTS FOR SALE IN EMIRATES LAKE TOWERS HAVE THE HIGHEST ROI IN AJMAN

With rental returns of up to 11.4%, apartments in Emirates Lake Towers is a good choice for real estate investors in Ajman. Other areas such as Al Nuaimiya, Emirates City, Garden City, Ajman Downtown and Corniche Ajman also boast impressive ROIs, all higher than 9%.

Al Sawan with its 8% ROI and proximity to Sharjah is also great for buyers interested in buy-to-let apartments in Ajman. Apartments in Al Rashidiya, Al Bustan and Sheikh Maktoum Bin Rashid Street also offer good ROIs of 7.3%, 5.6% and 6%, respectively.

Please note that these figures are the overall ROI for an area. They may vary depending on the sub-community and the property type.

PROPERTY PRICES IN AJMAN TO RENT APARTMENTS

TOP AREAS FROM THE AJMAN REAL ESTATE MARKET FOR RENTING APARTMENTS

Al Nuaimiya continues to be highly preferred by tenants. During Q3 2019, rental flats in Al Nuaimiya become more affordable than they were in Q2 of 2019 by a small margin. Rent for studios in Al Nuamiya went from AED 17k in Q2 of 2019 to AED 16.5k in Q3. The 1-bedroom flats for rent are now priced at AED 21k after a 4.5% fall in prices from Q2. The rental price for 2-bed apartments in Al Nuaimiya remains unchanged at AED 32k.

Ajman Downtown ranks second on the list of top 10 areas to rent apartments in Ajman. Located close to E11, the area offers a variety of residential flats for rent with prices that have remained largely unchanged from the previous quarter. Rental price for studios in Ajman Downtown average at AED 16k, while 1-bed rental flats are priced at AED 22k. The only decline in prices was observed for 2-bed rental apartments in Ajman Downtown, where rents fell by 4.8% from AED 31.5k in Q2 2019 to AED 30k now.

The Q3 real estate price trends in Ajman display general stability within the rental market, with a slight increase in the rental prices for 1-bed apartments. This increase, which ranges between 2% and 7% was visible in areas like Al Jurf, Emirates City, Garden City, Al Mowaihat and Corniche Ajman. These are all well-developed neighbourhoods where demand is consistently high, so landlords are able to negotiate favourable rents. 

Other areas popular for rental apartments in Ajman include Al Rawda, Al Sawan and Al Rashidiya. Incidentally, Al Rashidiya emerged as the most consistent area with average rental prices for studios, 1-bed and 2-bed flats unchanged from the previous quarter.

Let’s now look at the property trends in Ajman for renting and buying villas in the city. 

MOST POPULAR AREAS TO BUY AND RENT VILLAS IN AJMAN

TOP AREAS FOR BUYING AND RENTING VILLAS IN AJMAN

We now move on to property prices in Ajman for villas. Most investors in search of villas for sale in Ajman prefer Al Mowaihat over other areas. Accounting for the largest number of searches, Al Mowaihat generally tends to be the first choice for buyers because it offers proximity to Sheikh Mohammed Bin Zayed Road (E311). As per current listings, the average starting price to buy villas in Al Mowaihat is AED 800k.

The Al Rawda area ranks second in terms of popularity among areas with villas for sale in Ajman. The well-established area offers a family-friendly lifestyle with several schools, restaurants and supermarkets nearby. As per Bayut listings, prospective investors can buy villas in Al Rawda for as low as AED 800k.

Al Yasmeen ranks third and Al Hamidiyah clinches the fourth spot on Bayut’s list of top 10 areas to buy houses in Ajman. Both these neighbourhoods are located close to the Ajman-Sharjah border, perfect for those who might want to travel frequently between the two emirates. Ranking fifth among the emirate’s top villa communities is Al Zahraa. Current listings reveal that property prices in Ajman for villas for sale in Al Zahraa start from AED 1M.

Potential investors have also shown interest in areas like Al Jurf, Musherief, Al Zahia, Al Bustan and Al Rashidiya to buy villas in Ajman in Q3 2019.

AL ZAHIA HAS THE BEST AVERAGE ROI FOR VILLAS IN AJMAN

Surpassing all other areas in terms of rental returns, Al Zahia boasts an impressive ROI of 9.5%. While this ROI is calculated for the entire area, returns for villa sub-communities and different property types may differ. Other areas with a good rental yield in Ajman comprise Al Yasmeen and Al Rashidiya with ROI of 6.3% and 5.7%, respectively. 

AL RAWDA TAKES THE LEAD AS THE MOST POPULAR PLACE TO RENT HOUSES IN AJMAN FOR Q3 2019

Al Rawda takes the lead among neighbourhoods best for renting villas in Ajman. The area is highly searched for by potential tenants looking for Al Rawda rental villas. One can easily rent a 3-bed villa here for a starting price of AED 50k.

The second most popular villa community amongst renters is Al Mowaihat. Known for offering the unlikely combination of luxury and affordability, Al Mowaihat villas for rent are available at prices as low as AED 55k. The Al Jurf and Al Rashidiya neighbourhoods rank third and fourth, respectively. With both communities located alongside Al Ittihad Street, connectivity is never an issue. Ranking fifth in the line-up is Al Nuaimiya with villas for rent available for as less as AED 50k.

Other prominent areas that are garner interest for tenants looking for villas in Ajman include Al Hamidiyah, Musherief, Al Bustan, Al Raqaib and Al Zahraa.

TOP OFF-PLAN PROJECTS IN AJMAN REAL ESTATE

MOST POPULAR OFF-PLAN PROJECTS IN AJMAN

Talking about off-plan investments in Ajman, potential investors and homeowners are more inclined towards investing in villas. In the third quarter of 2019, Al Helio 2 in Al Helio is the most popular development for off-plan villas in Ajman. Al Helio offers off-plan homes for sale in Ajman in varying sizes – ranging from 3 to 5-bed configurations to cater to a broader investment spectrum. 

Another great off-plan development in Ajman for villas is VIP Villa in Ajman Uptown. The gated community is great for families in search of homes that offer a luxurious lifestyle backed with modern amenities.

For investors keen on buying off-plan apartments in Ajman, Paradise Lakes in Emirates City is worth considering. Located in the suburbs, this peaceful community is ideal for upscale living and better connectivity to other emirates.

That’s all there is to the Q3 2019 market report on property prices in Ajman. Subscribe to MyBayut and take a look at the Quarterly Market Report for Abu Dhabi, Dubai and Sharjah real estate markets. 

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.