Ajman Property Market Report for Q1 2020: A stable real estate market with high rental yields

• Apartments for sale
• Apartments for rent
• Villas in Ajman
• Off-plan projects

With the first quarter of 2020 coming to an end, it’s time to evaluate how the property market in Ajman performed during the first three months of the year. To analyse this, we have compared the property prices of these months to that of the last three months of 2019. For rental properties, we have evaluated prices based of each unit type, while for areas offering properties for sale, we have considered an average price per square foot as our main parameter for estimating the prices.

While the COVID-19 pandemic is sure to have some financial implications on the UAE real estate market, property trends in Ajman have been showing encouraging signs of stability in the month before the outbreak. Similar to Q4 2019, areas such as Ajman Downtown, Al Nuaimiya and Al Rashidiya remain consistently appealing to investors and tenants.

Areas such as Garden City, Ajman Downtown and Corniche Ajman are also offering high returns on investments with over 8% rental yields for prospective investors.

Without further ado, let’s look at the property prices in Ajman for Q1 2020.

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

Offering excellent connectivity and access to state-of-the-art amenities, Ajman Downtown continues to be a hotspot for buyers in the charming emirate. In comparison to Q4 2019, the price per foot of the area declined slightly from AED 221 to AED 213 in Q1 2020. This could be primarily due to the new inventory of off-plan properties in the area, some of which are still under development while others have been handed over.

The average price of studios in Ajman Downtown is AED 165k while 1-bed apartments are available for AED 224k. Buying 2-bedroom apartments in Ajman Downtown can also be a good option in the area, given that they are available for an average price of AED 313k.

The second most popular area for buying apartments in Ajman is Al Sawan, an area located close to Sheikh Zayed Road and Ajman Public Beach, offering both connectivity and leisure attractions. Al Sawan witnessed a marginal decrease of 1.9% in prices, from AED 348 per sq.ft. in the fourth quarter of 2019 to AED 341 per sq.ft. now.

The price of studios in Al Sawan shows a corresponding decrease from AED 213k to AED 212k. Similarly, prices of 1-bedroom apartments slightly declined from AED 321k to AED 314k. The cost of 2-bedroom flats in Al Sawan decreased from AED 523k to AED 519k in the first quarter of 2020.

Apart from these two areas, Al Rashidiya and Al Nuaimiya have also been consistently attracting potential investors looking for apartments for sale in Ajman. Other areas that are equally popular with buyers include Garden City, Corniche Ajman, Al Bustan and Sheikh Maktoum Bin Rashid Street. While each of these areas shows a small dip in prices, the cost of apartments in Corniche Ajman has not changed, showing a good deal of stability.

GARDEN CITY TAKES THE LEAD WITH THE HIGHEST ROI IN AJMAN

Surpassing other areas, Garden City offers the highest rental yields of up to 9.9%. Following closely is Garden City and Ajman Downtown offering an ROI of up to 9.7%, gaining traction from a large number of investors.

Corniche Ajman also boasts an ROI of 8.2% while Al Sawan offers returns of up to 7.7%. Other areas such as Al Rashidiya, Al Nuaimiya and Al Bustan also show promising ROIs of 6.9%, 6.6% and 5.1% respectively.

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

Al Nuaimiya continues to be the top choice for tenants renting apartments in Ajman. One of the reasons for the consistent popularity of the area is the affordability and its proximity to waterfront destinations. Compared to Q4 2019, there is no change in the rents of Al Nuaimiya, which also reveals encouraging signs of stability. The average rent of studios in Al Nuaimiya is AED 15k while the asking price for 1-bedroom apartment rentals is still AED 20k. For tenants who are interested in larger units, 2-bedroom apartments in Al Nuaimiya are available for an average of AED 29k.

Another popular area is Ajman Downtown, which shows a moderate decrease in terms of rental prices. While the average rent of studios and 2-bedroom apartments in Ajman Downtown show no change, 1-bedroom units witness a slight decrease of 4.5% compared to the fourth quarter of 2019. The price of studios for rent in Ajman Downtown is AED 15k while 1-bedroom apartments in Ajman Downtown can be rented for AED 21k. However, renting 2-bedroom flats in Ajman Downtown will cost you an average of AED 30k.

The third most in-demand area for renting flats in Ajman is Al Rashidiya. It is located close to the Ajman-Sharjah border, making commuting easier for those who frequently need to travel between the two cities. Given that and the fact that it offers access to schools, supermarkets and clinics, the area’s consistent popularity among the tenants is not surprising.

The rents of studios and 2-bedroom apartments in Al Rashidiya show no change while 1-bedroom flats in the area declined by 4.5% compared to Q4 2019. While studios in Al Rashidiya can be rented for AED 16k, 1-bedroom flats are available for AED 21k. You can also consider renting 2-bedroom flats in Al Rashidiya for an average rent of AED 29k.

The next most popular choice on the list is Al Jurf which is followed closely by Al Rawda. Other areas that have also attracted the interest of potential tenants are Garden City, Al Sawan, Al Mowaihat, Al Bustan and Corniche Ajman. While rents in each of these areas remained quite steady, rentals for 2-bedroom apartments in Al Mowaihat also show an increase of 4.2% compared to Q4.

Let’s now move on to the places popular for buying and renting villas in Ajman.

MOST POPULAR AREAS TO BUY AND RENT VILLAS IN AJMAN

Located in proximity to the Sheikh Mohammed Bin Zayed Road (E311), Al Mowaihat is the most sought-after area to buy villas in Ajman. It offers a wealth of amenities, ranging from access to supermarkets to provision of healthcare facilities. That’s probably the reason why the area is consistently popular with investors in Ajman. The price to buy villas in Al Mowaihat ranges between AED 1.1M and AED 2.2M as per current listings on Bayut.

The second most desirable area to buy villas in Ajman is Al Rawda. It is an easily accessible area lying in proximity to numerous restaurants and many reputable schools. The price of 3-bedroom villas in Al Rawda starts from around AED 860k while one can buy 4-bedroom villas for prices ranging from AED 900k to AED 1.1M as per current listings on Bayut. Investors can also consider 5-bedroom villas in Al Rawda, which are available for a price range of AED 1.2M to 2.7M.

Al Yasmeen ranks third while Al Helio secures the fourth spot with prospective buyers interested in Ajman villas. Similar to the aforementioned areas, these two have also been consistently garnering the attention of investors. Each of them offers a comfortable environment and access to amenities thus they are ideal for families. The sales price of villas in Al Yasmeen range between AED 850k and AED 2.2M while Al Helio villas cost between AED 900k and AED 1.2M according to current listings on Bayut.

In addition to these places, Al Manama, Al Zahia, Masfoot, Al Hamidiyah, Al Rashidiya and Musherief have also emerged as the top areas to buy houses in Q1 2020 in Ajman.

AL YASMEEN AND MUSHERIEF HAVE THE HIGHEST ROI

Al Yasmeen and Musherief offer the highest rental returns in Ajman. Both of them boast an impressive ROI of 5.4%. Those keen on investing in villas in Ajman can also consider other communities such as Al Rashidiya, Al Mowaihat and Al Jurf as they offer rental yields up to 5%, 4.7% and 4.6% respectively.

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

Al Rawda is the most sought after area to rent villas in Ajman. Potential tenants looking for villas in Al Rawda can consider 3-bedroom houses in Al Rawda which are available for prices starting from AED 40k.

Al Mowaihat is the second most preferred area to rent villas in Ajman. Offering affordable rents and a comfortable lifestyle, the area is perfect for those looking for a relatively secluded accommodation in the city. The rent of houses in Al Mowaihat range between AED 53k and AED 77k as per current listings on Bayut.

Al Nuaimiya secures the third spot in the list of areas popular to rent villas in Ajman. Given that Al Nuaimiya is located close to waterfront destinations and a highway, the wide appeal of the area is unsurprising. The rent of 3-bedroom villas in Al Nuaimiya starts from AED 40k.

Next up on the list of popular areas to rent villas in Ajman include Al Jurf, Musherief, Al Rashidiya, Al Hamidiyah, Al Zahia and Al Yasmeen.

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 first quarter of 2020, Ajman Corniche Residence is one of the most popular projects in Corniche Ajman. This could be attributed to the fact that the area is located on the shores of Ajman, offering sought-after waterfront living in the emirate. Another reason could be that it is home to various popular supermarkets and restaurants, offering freedom of selection and accessibility. While phases of this project have been handed over there are still off-plan units available in the area.

The second most in-demand off-plan project is Begonia in Ajman Uptown. Located along Sheikh Mohammed Bin Zayed Road (E311), it is perfect for those commuting in and around the city regularly. The community features a wide range of villas and townhouses, of which many have been completed and handed over.

A coastal suburb of Ajman, Al Zorah is also one of the most preferred places to make off-plan investments in the city. For those looking to buy freehold villas, it’s off-plan project The Fairways is worth considering. Facing the mangrove forest, the area promises a serene environment to live in.

And that brings an end to Ajman Q1 market report for 2020. The real estate trends in Ajman reveal stable market condition in the emirate. To know about the current property trends of other real estate markets in the UAE, read up on Dubai Q1 property market analysis or Abu Dhabi Q1 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.