Immeuble à Al Rashidiya, 11 chambres, 8300000 AED - 16753360

Building for Sale in Al Rashidiya – Al Ittihad Street

An excellent investment opportunity in the Al Rashidiya area – Al Ittihad Street, Ajman.

A mixed-use residential and commercial building is available for sale in a prime, strategic location in Al Rashidiya on Al Ittihad Street. Situated directly opposite the Falcon Towers and near Nesto Hypermarket, the property enjoys a vibrant location with easy accessibility and close proximity to numerous services and commercial facilities essential for daily living. Its location on Al Ittihad Street offers a significant investment advantage, particularly for those seeking a property in a well-known, bustling area close to major transport routes.

The land area is approximately 4,200 square feet. The building comprises 36 units—a mix of residential apartments and commercial shops—providing the investor with multiple revenue streams and making it an ideal choice for anyone looking for an established, income-generating asset.

The property consists of 30 one-bedroom apartments, one studio apartment, and five commercial shops. This configuration is highly practical from an investment perspective; one-bedroom apartments appeal to a broad tenant base—including individuals and small families—while the commercial shops provide an additional revenue stream alongside the residential income.

The building currently generates an annual income of AED 795,000. A crucial aspect of this deal is that three commercial shops are currently unleased and have not been factored into the existing AED 795,000 income figure. This implies an opportunity for the investor to increase future income by leasing out these units; consequently, the current income does not necessarily reflect the property's full revenue-generating potential.

The presence of three unleased units is a significant factor when evaluating the investment. The buyer acquires a property with an established income stream while simultaneously gaining clear potential to boost future revenue by activating the vacant spaces. Once these units are leased at appropriate market rates, the property's total annual income—and thus the return on investment—can increase.

At approximately 15 years old, the property is already established with an operational history, rather than a new project requiring a waiting period for completion or the commencement of revenue generation. This is a crucial point for investors who prefer purchasing an existing asset that offers immediate income upon acquisition, alongside the potential to enhance future earnings through the unleased units and effective property management.

Regarding the asking price, the building is listed at AED 8,300,000 with very limited room for negotiation, indicating that the price is close to the owner's final figure. Based on the current annual income of AED 795,000, the theoretical gross yield on the asking price is approximately 9.58% per annum—calculated before deducting expenses, operating costs, maintenance, and vacancy losses. Based on preliminary figures, the deal warrants serious consideration—especially given that three commercial units are not currently generating income.

Rough calculations place the sale price at approximately 10.44 times the current annual income. The average income per unit—derived by dividing total income by the 36 units—is roughly AED 22,000 per year; however, this is merely an arithmetic mean rather than the actual rent for each unit, as rental rates vary between apartments and commercial spaces.

The building’s key advantages include its prime location, existing income stream, diverse unit mix, and the presence of commercial spaces—including three vacant units that offer an opportunity to boost revenue. Furthermore, the inclusion of 30 "one-bedroom-plus-living-room" apartments ensures the property relies on a large number of units rather than a limited pool of tenants, a crucial factor for ensuring consistent cash flow.

For a serious investor, the best approach to evaluating the property prior to purchase involves reviewing the details of current income, lease agreements for all units, occupancy rates, individual apartment rents, and the status of the five commercial units (including the reasons why three remain unleased). It is also essential to review annual expenses, maintenance costs, and the building's overall condition. Additionally, comparing the potential rental value of the vacant commercial units against prevailing local market rates helps determine the potential increase in income once they are leased. This is a mixed-use residential and commercial building located in Al Rashidiya (Al Ittihad Street), opposite the Falcon Towers and near Nesto Hypermarket. Spanning an area of 4,200 square feet, the building comprises 36 units—including 30 one-bedroom apartments, one studio apartment, and five retail shops—generating a current annual income of AED 795,000. Notably, three of the retail shops are currently unleased and excluded from the current income figures, offering the investor a potential opportunity to boost future returns.

The asking price is AED 8,300,000 (with very limited room for negotiation). The property is ideal for investors seeking an established building in a prime location with a clear annual income stream and the added potential to increase revenue by leasing out the vacant commercial units.

This opportunity warrants serious consideration and a site visit, particularly for those looking for an established real estate investment generating nearly AED 800,000 in annual income, with the prospect of future revenue growth through the utilization of the currently unleased commercial spaces.