Ajman Market Report for H1 2020: Attractive prices and high rental yields bring greater attention to the UAE’s smallest emirate

• Apartments for sale
• Apartments for rent
• Villas sales prices and rentals
• Off-plan projects in Ajman

As we move into the second half of 2020, it’s time to analyse how Ajman’s property market fared during the first six months of the year. To evaluate consumer interest for real estate in Ajman in H1 2020, we have compared the average asking prices in the first six months of 2020 to those in the final six months of 2019. Similar to the other emirates of the UAE, the Ajman real estate market also felt the impact of COVID-19 during the first half of 2020. However, slowly and gradually, the market has been gaining stability as we enter the latter half of 2020.

Areas such as Ajman Downtown, Al Nuaimiya and Al Rashidiya continue to appeal to tenants and investors, thanks to their central location, well-planned amenities and easy connectivity to the other emirates. Meanwhile, Garden City, Emirates City, Corniche Ajman and Al Sawan are offering projected ROI of more than 7.5%, paving way for prospective investors to invest in these areas in Ajman.

Here is a complete analysis of Ajman property prices for H1 2020.

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

Ajman Downtown continues to remain appealing to investors looking to buy apartments in Ajman. Known for its excellent connectivity and affordability, the area has consistently made a mark with buyers looking to invest in the emirate. Compared to H2 2019, the price per square foot for apartments in the area decreased marginally from AED 224 to AED 214 in H1 2020. The average price for studios in Ajman Downtown is AED 167k while you can buy 1-bedroom flats in the area for AED 224k. Those interested in larger units can buy 2-bedroom flats in Ajman Downtown for AED 310k.

Offering favourable investment opportunities and a wide range of amenities, Emirates City is the second in-demand area with a good selection of flats for sale in Ajman. In comparison to the second half of 2019, the price per square foot of the area shows a moderate decrease from AED 190 in H2 2019 to AED 179 in H1 2020. The average asking price for 1-bedroom flats in Emirates City is AED 162k, while the average price for 2-bedroom apartments in Emirates City is slightly higher at AED 213k.

Al Sawan is the third most popular option with buyers interested in flats in Ajman due to its fairly affordable prices and proximity to Sheikh Khalifa Bin Zayed Road. Compared to the second half of the previous year, the area has seen a minor decrease in price per square foot, going from AED 348 in H2 2019 to AED 338 in H1 2020. The price of studios in Al Sawan is AED 209k while 1-bedroom flats in Al Sawan can be bought for an average price of AED 309k. Investors inclined towards bigger units can also consider 2-bedroom flats in Al Sawan which average at AED 528k.

In addition to these areas, Al Rashidiya and Garden City have also been gaining interest with investors. Al Nuaimiya, Corniche Ajman, Al Bustan and Sheikh Maktoum Bin Rashid Street are also equally popular with prospective buyers.

GARDEN CITY HAS THE HIGHEST ROI IN AJMAN

Garden City takes the lead with the highest ROI in Ajman of 9.8%. Ajman Downtown and Emirates City have the second-highest ROI with projected rental yields of up to 9.6%. Other areas with promising ROI include Corniche Ajman, Al Sawan, Al Nuaimiya and Al Rashidiya yielding 8.2%, 7.4%, 6.6% and 6.4%.

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

Al Nuaimiya continues to be the top pick for tenants looking to rent apartments in Ajman. The consistent popularity of the area could be attributed to the fact that the area offers affordable rents and is close to waterfront destinations. Compared to H2 2019, the area shows no change in the rental trends of studios and 1-bedroom apartments; however, the rent for 2-bedroom flats shows a slight decrease of 3.3%. Overall, the area reveals signs of stability. The average rent of studios in Al Nuaimiya is AED 15k while 1-bedroom apartments in Al Nuaimiya are available for an asking price of AED 20k. Tenants can also consider 2-bedroom flats for rent in Al Nuaimiya, available at AED 29k.

Another popular area that has consistently been garnering the interest of tenants is Ajman Downtown. The area shows a moderate decline in terms of rental prices. Compared to the second half of 2019, the rent of studios in Ajman have decreased by 6.3% while 1-bedroom and 2-bedroom apartments have witnessed a minor dip of 4.5% and 3.3%. The average rent of studios in Ajman Downtown is AED 15k while 1-bedroom apartments in Ajman Downtown can be rented for AED 21k. The cost of renting 2-bedroom flats in Ajman Downtown averages at AED 29k.

Al Rashidiya is the third most popular area to rent apartments in Ajman. The rent of studios in Al Rashidiya is stable at AED 16k while 1 and 2-bedroom flats in the community show a slight decrease of 4.5% and 3.4% respectively. The 1-bedroom apartments in Al Rashidiya can be rented for an average of AED 21k, while 2-bedroom flats are slightly more expensive and average at AED 28k.

Apart from these three areas, Al Rawda and Al Jurf also offer attractive prospects for tenants looking to rent flats in Ajman. Other popular areas include Emirates City, Garden City, Al Sawan, Al Mowaihat and Corniche Ajman. Rental prices in each of these areas have remained quite steady since H1 2020.

Now let’s move on the list of popular areas where you can buy and rent villas in Ajman.

TOP 10 MOST POPULAR AREAS TO BUY AND RENT VILLAS IN AJMAN

Located close to the Sharjah-Ajman border, Al Mowaihat is one of the most popular areas to buy villas in Ajman. The area offers a peaceful environment to live in where one can enjoy access to supermarkets, schools, clinics and lush-green parks. That explains why the area is consistently popular with investors looking for comfortable accommodation in the emirate. The price to buy villas in Al Mowaihat ranges between AED 1.1M and AED 14M based on the current listings on Bayut.

Al Rawda is the second most sought-after area to buy houses in Ajman. It provides easy access to primary necessities such as schools, supermarkets and hospitals along with various recreational hangouts and facilities such as malls, restaurants and beaches. You can buy a 3-bedroom villa in Al Rawda for a price ranging between AED 740k and AED 1M while 4-bedroom houses in the community are available for a starting price of AED 1.4M. Investors interested in larger units can consider 5-bedroom villas in Al Rawda, currently available in a price range of AED 1.4M to AED 2.2M.

Al Yasmeen ranks third in the list of top areas with villas for sale in Ajman. Given that the area is home to various family-friendly attractions and provides access to other communities, the continued appeal for the area is not surprising. The sales price of villas in Al Yasmeen ranges between AED 850k and AED 1.8M as per current listings on Bayut.

In addition to these areas, prospective buyers can also consider Al Zahia, Al Manama, Al Hamidiyah, Musherief, Masfoot and Al Rashidiya when it comes to villas for sale in Ajman.

AL HELIO HAS THE HIGHEST ROI

Those keen on investing in the emirate will be happy to know that the villa community of Al Helio boasts an impressive ROI of 6.7%. Other neighbourhoods that offer high rental yields in Ajman include Al Yasmeen, Musherief, Al Mowaihat and Al Jurf. While Al Yasmeen has an ROI of 5.6%, Musherief yields returns of up to 5.4%. Both Al Jurf and Al Mowaihat offer a projected ROI of 4.7%.

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

In the first half of 2020, Al Rawda is the most popular area to rent villas in Ajman. Those looking for villas in Ajman can rent 3, 4 and 5-bedroom villas in Al Rawda. The price of villas for rent in Al Rawda starts at AED 45k. 

Al Mowaihat is the second most popular choice to rent villas in Ajman. Offering easy access to the Sheikh Mohammad Bin Zayed Road (E311) highway and reasonable rents, the area is perfect for those who need to travel from one emirate to another frequently. The price of villas for rent in Al Mowaihat ranges between AED 60k and AED 120k as per current listings on Bayut.

Musherief takes the third spot in the list of most popular areas to rent villas in Ajman. Located close to parks, schools, supermarkets and healthcare facilities, the area promises a wholesome living experience. The rent of 3-bedroom houses in Musherief starts from AED 55k.

Other popular areas to rent villas in Ajman include Al Nuaimiya, Al Jurf, Al Hamidiyah, Al Rashidiya, Al Yasmeen and Al Raqaib.

TOP OFF-PLAN PROJECTS IN AJMAN REAL ESTATE

MOST POPULAR OFF-PLAN PROJECTS IN AJMAN

When it comes to the off-plan properties in the second quarter of 2020, Lake Tower 2 in Emirates City has emerged as one of the popular off-plan projects in Ajman. This could be due to the fact that the area lies close to the two main highways of Ajman and offers access to various leisure facilities including sports venues, restaurants and beaches. The project is still under construction.

The second most popular off-plan project that has been gaining traction is Erica 1 in Ajman Uptown. Located along the Sheikh Mohammed Bin Zayed Road (E311), the area promises accessibility and connectivity. It features a variety of villas and townhouses. While phases of this project are completed, a few of the units are still under-development.

With that, we wrap our market report of Ajman property prices for H2 2020. The emirate appears to have favourable conditions for investors who want to gain steady returns. If you want to know how the other property markets of the UAE have performed in the first half of 2020, take a look at Abu Dhabi Market Report or Dubai half-yearly report.

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.