Ajman real estate market report for H1 2019: Ajman continues to be an attractive investment destination

The Ajman real estate market so far in 2019 has provided favourable opportunities for both investors and renters in the city. With established neighbourhoods becoming more affordable, the emergence of newly-developed communities and high rental returns, Ajman is proving to be a very attractive housing market in the UAE, for locals, expats and global investors. In this report, we have compared the performance of the property market in Ajman over the first six months of 2019 to the last six months of 2018.

While analysing trends in H12019 compared to H2 of 2018, we can see property price trends in Ajman for both sales and rental prices have seen moderate declines on average, although waterfront communities like Corniche Ajman and Al Bustan have seen an upswing in prices. Neighbourhoods in the heart of Ajman, like Ajman Downtown, Al Nuaimiya and Al Rashidiya take the lead for investing and renting, while suburbs like Garden City and Emirates City are gaining traction, especially in the rental market.

Read on for an in-depth analysis of the property prices in Ajman for apartments and villas.

AJMAN PROPERTY PRICES FOR BUYING APARTMENTS WITNESS MINOR DECLINES

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

Property trends in Ajman reveal that more established, urban areas like Ajman Downtown, Al Rashidiya and Al Nuaimiya are still the clear favourites for potential investors. However, emerging neighbourhoods from the Ajman real estate market like Garden City and Emirates City are also generating interest from investors, especially due to connectivity to major road links like Al Ittihad Street (E11) and Sheikh Mohammed Bin Zayed Road (E311). 

Ajman Downtown has remained the undisputed winner as the most popular area to buy apartments in Ajman since H2 2018. One of the most developed neighbourhoods from the Ajman property market, Ajman Downtown is home to modern apartments surrounded by a plethora of amenities. Its proximity to the Ajman Free Zone and Al Ittihad Street (E11) also makes it the prime choice for investors.

Property prices in Ajman Downtown for buying apartments have seen decreases across the board between 2% – 6% from H2 2018. The recent off-plan deliveries has sufficiently increased inventory, resulting in these price fluctuations. The declining prices, however, give smaller investors the chance to invest in one of Ajman’s best neighbourhoods at more affordable price points. Prices to buy apartments in Ajman Downtown stand at AED 175k for studios, AED 255k for 1-bedroom units and AED 320k for 2-bedroom units.

The nearby community of Al Rashidiya is also amongst investors’ top choices for apartments for sale in Ajman. Its popularity is thanks to the significant number of amenities in the area such as schools, parks and restaurants and well-connected public transport system. Thus, the apartments for sale in Rashidiya are pricier than in other areas. Buying prices for studios in Al Rashidiya stand at AED 310k, while 1-bedroom flats average at AED 422k.

Property price trends in Ajman indicate that most areas have seen declines between 2% – 8%. Emirates City saw the largest decrease overall, with sales prices for 1-bedroom units going down from AED 210k to AED 190k in H1 2019. However, certain units in waterfront communities like Corniche Ajman have seen an uptick in sales prices. The 2-bedroom flats in Corniche Ajman saw sales prices jump by 12.3%, going up from AED 650k in H2 2018 to AED 730k in H1 2019. Similarly, the apartments in Al Bustan, which are close to the waterfront attraction of Marsa Ajman, saw prices rise for studios and 2-bedroom units.

Al NUAIMIYA OFFERS THE BEST AVERAGE RENTAL YIELD IN AJMAN REAL ESTATE FOR APARTMENTS

Those looking to invest in apartments in Ajman and enjoy high rental returns should consider the area of Al Nuaimiya, which offers average ROI as high as 13.3%. This can change depending on the type of unit you own. Al Nuaimiya is home to a mixture of low-rise and mid-rise residential buildings, which offers units ranging from studios to 3-bedroom apartments. The prices to buy apartments in Al Nuaimiya start as low as AED 180k.

Other areas with a healthy rental yield in Ajman includes Al Jurf and Garden City, which boast average ROI of 9.7%, which is subject to change depending on the property type.

PROPERTY PRICES IN AJMAN TO RENT APARTMENTS EXPERIENCE MODERATE DECLINES

TOP AREAS FROM THE AJMAN REAL ESTATE MARKET FOR RENTING APARTMENTS

Bayut’s Ajman real estate market report reveals that tenants also consider similar areas when renting in the emirate. Areas close to the Ajman Free Zone like Al Nuaimiya, Ajman Downtown and Al Rashidiya are top choices for renting apartments in Ajman. However, more affordable areas like Al Mowaihat, Al Jurf, Garden City and Emirates City are also picking up in interest.

Situated along Al Ittihad Street (E11), Al Nuaimiya is a firm favourite with renters, with prices only seeing minor decreases of 4% – 6%. The easy access to amenities like retail outlets, mosques, hospitals and schools makes it convenient for families and single professionals. Prices for rental studios in Al Nuaimiya has remained stable at AED 17k, while 1-bedroom units and 2-bedroom units have seen rents dip to AED 22k and AED 33k respectively.

Ajman Downtown comes in as the second-most popular for rental apartments in Ajman. Property prices for apartments for rent in Ajman Downtown have seen moderate declines overall, which could indicate that tenants are negotiating better rental deals, due to the larger inventory available in the region. The 1-bedroom units in Ajman Downtown have seen the most significant decrease, dropping from AED 25k to AED 22k in H1 2019. Meanwhile, prices to rent studios in Ajman Downtown have dipped to AED 16k, while 2-bedroom flats dropped to AED 31k.

Overall, trends for property prices in Ajman show that rentals have declined across the city’s most popular areas. The largest price decline for flats for rent in Ajman is in Corniche Ajman, where 1-bedroom flats dropped by 15.8%, falling from AED 38k to AED 32k. Other areas in the Ajman real estate market have seen prices slide between 3% – 12%, with a few decreases around the 15% mark as well.

MOST POPULAR AREAS TO BUY AND RENT VILLAS IN AJMAN

TOP AREAS FOR BUYING AND RENTING VILLAS IN AJMAN

Potential investors looking at villas for sale in Ajman turn to the area of Al Mowaihat as their first choice, which has generated 38.4% of searches. Al Mowaihat is located on the outskirts of Ajman, close to Sheikh Mohammed Bin Zayed Road (E311). Prices to buy villas in Al Mowaihat starts from an affordable AED 975k.

This is followed closely by the Al Rawda area. The villas for sale in Al Rawda are also an ideal investment opportunity, with connectivity to other emirates via the Sheikh Maktoum Bin Rashid Street. The Al Yasmeen neighbourhood accounts for 8.4% of total searches and is followed by Al Zahraa (6.3%) and Al Jurf (3.8%). Other areas that investors look at to buy villas in Ajman are Al Hamidiyah, Musherief, Al Rashidiya, Al Nuaimiya and Al Sawan.

Prospective tenants also look at similar areas from the Ajman real estate market to rent villas. Al Rawda takes the top spot, bringing in 36.4% of complete searches for villa rentals in Ajman. This area is dotted with multiple restaurants and supermarkets while being close to many schools, which makes it popular with renters in Ajman. The prices to rent villas in Al Rawda start as low as AED 28k, which allows renters to enjoy larger living spaces for lower costs. Coming in second to rent villas in Ajman is Al Mowaihat, generating 28.5% of the interest from potential tenants.

Similar to villa sales, other areas from Ajman property market that are popular for villas rentals include Al Jurf (8.7%), Al Rashidiya (5.6%) and Al Zahraa (5.4%). Renters also look at the neighbourhoods of Al Nuaimiya and Al Hamidiyah, amongst others.

AL SAWAN OFFERS THE BEST AVERAGE ROI IN AJMAN FOR VILLAS

Investors looking at villas for sale in Ajman with good average ROI should consider the neighbourhood of Al Sawan, which boasts an impressive average ROI of 9.3%, which is subject to change depending on the type of unit. Al Sawan is located near other popular areas such as Corniche Ajman and Al Nuaimiya and is home to spacious villas for sale. Other areas in the Ajman property market that offer buyers healthy rental returns on average for the overall neighbourhood are Al Yasmeen and Al Nuaimiya, which have average ROIs of 7.5% and 7% respectively.

TOP OFF-PLAN PROJECTS IN AJMAN

There are several promising off-plan projects in Ajman real estate for investors to take advantage of. The most popular of these off-plan properties in the Ajman real estate market is Erica 1 in Ajman Uptown, which has generated 30.5% of the total searches by Bayut users.

Located just off Sheikh Mohammed Bin Zayed Road (E311), Erica 1 is an upcoming villa community with spacious and quality homes. This is followed by another upcoming project in Ajman Uptown, known as VIP Villas, which accounts for 26% of overall interest in Ajman’s off-plan properties. VIP Villas is home to larger units and are ideal for buyers who want to invest in luxury at an affordable price point.

Other off-plan properties from the Ajman real estate market that have caught the attention of investors include Erica 2V, Al Mazraa Tower and Smart Tower 1. 

FORECAST FOR H2 2019

Commenting on the trends seen so far, Haider Ali Khan, the CEO of Bayut said:

“The price changes in the last six months for properties in Sharjah and Ajman follow the same trend we have observed for Dubai and Abu Dhabi. It is a consumer led market in both emirates, with competitive prices for sales as well as rentals. Handovers in key areas like Al Nahda, Al Taawun and Ajman Downtown, reflects increased investor interest which is clearly evident from the high volume of searches conducted by users on Bayut as well. A growing market size is always a good sign and Sharjah and Ajman are also known for the healthy ROI both emirates offer when compared with other similar cities across the world.”

That concludes Bayut’s report on the Ajman real estate market in H1 2019. We hope this Ajman property market report helps you make smart decisions when renting or investing in the city. Find out how property markets in other emirates have performed with our Dubai market report and Abu Dhabi real estate trends report. If you are looking for a similar family-friendly environment away from the bustle of the city, take a look at our detailed Sharjah H1 Market Report for 2019. And stay tuned to MyBayut for more updates on the latest real estate trends. .