04 August 2021, Trade Arabia – tradearabia.com
The real estate markets in the northern emirates of Sharjah and Ajman have recorded stability in sales and rental prices in the first half of 2021, thanks to the affordable prices, family-friendly amenities and healthy rental yields, according to UAE real estate portals Bayut & dubizzle.
Sales prices in both Sharjah and Ajman have increased or remained steady in most of the popular locations while rental prices have remained reasonable, stated the duo in its H1 2021 property market report.
As per the Department of Land and Real Estate Regulation in Ajman, the emirate has registered AED2.7 billion worth of real estate transactions in the first quarter of 2021.
Similarly, Sharjah has also recorded transactions worth AED6.7 billion in Q1, an increase of 84.9% compared to the same period in 2020, according to the emirate’s Real Estate Registration Department.
Sharjah and Ajman have also continued to offer strong return-on-investment of up to 10% for villas and apartments, while the rental market in both emirates has remained competitively priced in H1 2021.
According to Bayut & dubizzle’s combined property market report, ready apartments in Sharjah have experienced an uptick in sales price-per-square-foot during H1. The key highlights in the report are:
•Apartments in Al Khan have been the top choice for investors in H1 2021, with average price-per-square-foot rising by 14.9%, from AED714 to AED820.
•Al Majaz has seen sales price-per-square-foot for apartments remain steady at AED354, while Al Nahda and Muwaileh have recorded price increases between 3% to 8% in H1 2021.
•Al Majaz has also continued to offer strong rental returns of 6.57% for apartments for sale, while Al Nahda has been yielding an average ROI of 5.1%.
Sharjah’s rental market has remained tenant-friendly in the first half of 2021, recording price fluctuations of under 11% for apartments in popular neighbourhoods.
•Al Nahda has been the most preferred choice for tenants in search of rental apartments, followed closely by the waterfront neighbourhood of Al Majaz. The asking rents for flats in Al Nahda have seen minor declines between 4% to 8%, averaging at AED 16k for studios, AED21,000 for one-bed flats and AED28,000 for two-bed apartments.
•Prospective tenants have also shown an inclination towards Muwaileh, Muwailih Commercial, Al Khan, Al Qasimia, Abu Shagara and Al Mahatah for rental apartments in Sharjah.
According to Bayut & dubizzle’s half-yearly report, when it comes to villas for rent and sale in Sharjah, Al Tai has been the top choice for potential tenants and investors in H1 2021.
Al Gharayen has been offering high average ROI of 6.18% for villas in Sharjah, it added.
As per Bayut & dubizzle’s analysis of property trends in Ajman, Ajman Downtown has remained the most popular choice with prospective buyers looking for apartments in the first six months of 2021.
The average price-per-square-foot for ready apartments for sale in Ajman Downtown and Emirates City has remained steady in H1 2021, averaging at AED 202 and AED 175 respectively.
On the other hand, apartments in Corniche Ajman have experienced a 6.35% increase in average price-per-square-foot, rising from AED 418 to AED 445, said the report.
According to the duo, investors looking to benefit from high rental returns on apartments should consider Garden City, Ajman Downtown and Emirates City, which have been yielding average ROI of 9.83%, 9.62% and 9.61% respectively.
Consumer trends on Bayut & dubizzle reveal that Al Nuaimiya has remained the most popular choice among prospective tenants for rental apartments in Ajman. The report’s key highlights for the emirate are:
•In H1, the asking rents for flats in Al Nuaimiya have experienced slight decreases of up to 4%. Tenants can expect to pay AED15,000 for studios, AED19,000 for 1-bed and AED28,000 for 2-bed apartments in Al Nuaimiya.
•Other centrally-located neighbourhoods such as Al Rashidiya, Ajman Downtown and Al Jurf, as well as suburbs such as Al Rawda and Emirates City, have seen rental prices for apartments remain largely steady in H1 2021, recording minor declines of under 6%.
When it comes to villa properties in Ajman, Al Yasmeen has emerged as the preferred choice among buyers, while Al Rawda has remained the firm favourite for rental villas, stated the report.
For investors looking to earn high returns, villas in Al Helio have been offering an average ROI of 6.06%, based on projected rental yields, it added.
Bayut & dubizzle CEO Haider Ali Khan said: “The growing positive sentiment in Dubai and Abu Dhabi can also be seen in the Sharjah and Ajman property markets in the first half of 2021. Real estate transactions in both emirates have been on the rise, and certain neighbourhoods have even seen an uptick in sales prices.”
“On our portals too, we’ve recorded upwards of 7 million sessions for properties in Sharjah and Ajman over the last six months alone. With these competitive prices and strong rental returns, we can expect demand to stay strong for the Northern Emirates real estate market in the coming months,” he added.