Rents in Ajman have fallen by 20% on average in most areas of the emirate since the beginning of this year until the end of last November, compared to the same period in 2018, according to a survey conducted by «Emirates Today» in different areas of the emirate.

Real estate owners attributed this decline to several reasons, most notably the abundance of supply with the delivery of many buildings, especially those with middle floors, in addition to the owners' conviction that there is a price correction for rents, which led them to give up the rent values ​​they had previously adhered to, as well as lower rents in Other emirates near Ajman, confirming the existence of a price correction in the emirate rents.

Dips

In detail, Emirates Today reported a decline in Ajman rents by 20% on average during the last 11 months of this year compared to the same period last year, according to real estate ads on rental websites, which are offered by rental offices. And property management in Ajman, during that period.

Nuaimiya

Al Nuaimiya, one of the most popular areas in Ajman, witnessed a decline in the average rental prices, as the studio unit recorded prices that did not exceed 10,000 dirhams in most rental ads, compared to 12 thousand and 13 thousand dirhams during the comparison period.

As for the residential unit in the category of room and lounge, recorded prices ranging from 15 thousand dirhams to 18 thousand dirhams in that region, compared to the prices of the comparative period of 2018, where the region recorded an average price ranges between 17.5 thousand and 22.5 thousand dirhams.

In the same area, two-bedroom and lounge units recorded average prices of AED 20,000 to AED 23,000, compared to an average of AED 22,000 to AED 25,000 during the comparison period. However, some residential units recorded prices that are around AED 2000 higher than the average prices of the region in this category of units, which are the most demanded in the Emirate by households.

Rashidiya

Al Rashidiya also witnessed a decrease in rental rates reaching an average of 20% also for the categories of room, lounge, two rooms and lounge, where the average rental rate for the room and lounge 16 thousand dirhams to 19 thousand dirhams, according to specifications for each housing unit, compared to 21 thousand dirhams and 23 thousand dirhams in the comparison period Last year, rents of the two-bedroom unit ranged from AED 18,000 to AED 22,000, compared to AED 23,26,000 during the comparative period.

Shelf and kindergarten

In the adjacent Al Jurf and Al Rawdha areas, average prices during the first 11 months of this year saw rental values ​​for the room and a hall ranging from 18,000 to 21,000 dirhams, while the two rooms recorded from 22,000 to 26,000 dirhams, compared to 20,000 to 23,000 dirhams for the room. The lounge, between 24 thousand and 28 thousand dirhams for the two rooms, during the same period last year.

Price correction

Ahmed Sultan, head of SkyCity's real estate office in Ajman, said that there is a real correction in rental prices in Ajman, pointing out that it recorded declines of up to 20% in most areas of the emirate since the beginning of this year until the end of last November. Compared to the same period in 2018.

Sultan attributed the decline to several reasons, including the large rental supply in the real estate market in the emirate, as well as the decline in rents in other emirates near Ajman, especially Sharjah and Umm Al Quwain, in addition to the conviction by the owners of the rental correction, which gave the power to property managers to reduce Rents.

Another reason is the large number of new buildings entering the market, especially the mid-rise floors that were recently delivered.

Strong competition

Hani Ebadi, head of Ajman's Al Nashmi Property Management Office, said property owners in Ajman have become more effective in dealing with the rental correction than before.

He explained that the sale value of the property is calculated by the rental income from it, which made many cling to the rental value in the previous period, but with the long period of non-occupancy began to convince many owners to deal with the rental correction in real, in addition to the entry of dozens of buildings in popular areas of value Low rentals such as Nuaimiya and Rashidiya.

He pointed out that the rental market in Ajman has witnessed, during the past few months, a strong competition for giving the tenant a lot of advantages, to revive the movement of rents in the emirate, noting that there are offices offering free parking, and others compete with the modernity of the building under the name of the first resident, while competing He expected the decline in rental values ​​until the end of the year.

Continued decline

The real estate expert, General Manager of Manarat Al Shati Real Estate Company, Fuad Jassim, confirmed the existence of a price correction for Ajman rents.

He attributed this to a number of reasons, most notably the abundance of the rental supply in conjunction with the presence of active delivery of many buildings, especially those with medium floors, and expected to continue to decrease rents in the emirate until the end of the year.

Less rental values

Ajman's Sheikh Mohammed Bin Zayed Road recorded the lowest rental values ​​during the past 11 months, with average room rent and a lounge of 14,000 dirhams, compared to 16,000 dirhams recorded in the same period last year.

As for the rents of the two rooms and lounge, recorded 16 thousand dirhams compared to 18 thousand dirhams, as the prices of rents in this region is one of the cheapest areas in Ajman.