Attractive rental prices and returns boosted demand for Sharjah and Ajman real estate during 2021
The real estate market in both Sharjah and Ajman has maintained its attractiveness to a wide range of investors and tenants thanks to the competitive prices offered by the well-known areas in the two emirates, according to Bayut and Dubizzle report on the Sharjah and Ajman real estate market for the year 2021. He indicated that the demand for real estate in both emirates has improved during the months past, with promising signs of a recovery from the slowdown caused by the Corona pandemic in early 2020.
Commenting on the findings in the report, Haider Ali Khan, CEO of Bayut and Dubizzle and President of EMPG Group in the Middle East and North Africa: “The real estate market in Sharjah and Ajman offers a wide range of options that have the ability to meet the requirements of a large segment of the population. The real estate market in both emirates witnessed a remarkable growth during 2021, which coincided with the increase in the total number of properties offered on the Bayut and dubizzle platforms. By 90% in Sharjah and 20% in Ajman, in addition to the growth of the total number of visits to both sites to approach 15 million visits during the year 2021.”
According to the data provided by the report regarding the real estate market in Sharjah, apartment rents recorded a moderate decrease in general, while selling prices increased slightly in the well-known areas.
Al Nahda continued to be the most sought-after area by tenants during 2021, which coincided with a decrease in rents, which contributed to an increase in demand by tenants.
The average annual rent for studio apartments in Al Nahda decreased from AED 17,000 per year in 2020 to AED 16,000 per year in 2021. One- and two-bedroom apartments also recorded notable decreases in rental rates estimated at 9.61% and 8.8%. 32% in a row.
The list of areas most requested by tenants also included Al Majaz and Al Taawun areas, according to the Bayut and Dubizzle report, which indicated the continued competitiveness of rents in them in general.
On the other hand, Al Khan was the preferred choice for investors interested in buying apartments in Sharjah during 2021. It is noteworthy that the average selling price per square foot in the emirate witnessed moderate increases in most of the known areas, including Al Majaz and Al Jada, which ranged between 1.49% and 11.87% .
However, a slight decrease in the average square foot price of apartments in Al Nahda was observed by 5.32% during 2021.
In turn, apartments in Al Majaz area recorded the highest return on investment with a rate of 6.33%, which contributed to attracting more investors.
Looking at the villas, Al Tayy was the most attractive area for tenants and investors alike during 2021. While the villas in Muwailih provided the highest return on investment, estimated at 5.61%.
Apartment rents in Ajman witnessed moderate declines in most of the known areas during 2021. Al Nuaimiya topped the list of areas most in demand by renters looking for apartments, which is attributed to the decrease in the average rent by 8.62%, in addition to the facilities and services provided by the area.
The average rent for studio apartments in Al Nuaimiya decreased slightly from AED 15k per year in 2020 to AED 14k per year in 2021, while the average rent for one and two-bedroom apartments was AED 19k per year and 28k UAE dirhams annually, respectively.
According to the Bayut and Dubizzle report on the Ajman real estate market, the list of areas most in demand for renting apartments included Al Rashidiya and Al Jurf, where the average rent in Al Oula decreased by 2% to 5%, while the average rent for apartments in Al Jurf decreased by 2.7%.
The average selling price per square foot for apartments in Ajman witnessed moderate declines to become more competitive and enhance its ability to attract more investors during 2021. Al Rashidiya attracted the most interest from buyers, as the average selling price per square foot for apartments decreased by 33%, Which is attributed to the delivery of more units with reasonable prices.
The average selling price per square foot in Ajman Downtown decreased by 2.12%, while the average selling price per square foot for apartments in Ajman Corniche increased by 3.23%.
On the other hand, the distinguished return on investment, which exceeded 9%, contributed to attracting more investors to buy apartments in both Garden City and Ajman Downtown.
As for the villas sector, the Al Yasmeen area topped the list of areas in most demand for buying villas in Ajman.
Whereas, villas in the Ajman downtown area provided the highest return on investment, which was estimated at 7.65%.
The report indicated the interest of tenants looking for villas in the areas of Al Rawda, Al Mowaihat and Al Hamidiyah.
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