As we complete the first quarter of 2019, it’s now time to take a look at the evolution of the property prices in Ajman. This time our data analysts compared the property prices from the last quarter of 2018 to the first quarter of 2019.
In the first quarter of 2019, the property prices in Ajman for both sales and rents experienced marginal decreases compared to those seen in Q4 of 2018, helping Ajman remain a popular choice for affordable housing.
The property price trends in Ajman also show an increased interest in urban communities with higher ROI such as Ajman Uptown and Ajman Corniche. The attractive payment plans combined with high ROI have bolstered investor interest in the Ajman real estate market
With that being said, here is a closer look at the transition of the property prices in Ajman from Q4 2018 to Q1 2019.
PROPERTY PRICES IN AJMAN FOR THE APARTMENTS FOR SALE
The Ajman real estate market continues to be a favoured choice for property investors. In the first quarter of 2019, in terms of the apartments for sale in Ajman, there were quite a few areas displaying a decrease in prices for 1-bed units ranging between 7-8%. The sales prices for 1-bedroom apartments in Garden City decreased from AED 195k in Q4 2018 to AED 180k in the first quarter of 2019.
Prices for buying flats in Al Sawan also experienced a decrease, where 1-bed units slid from AED 350k to AED 325k and 2-bed units also showed a decrease from AED 650k to AED 600k. Finally, 1-bedroom units in Al Nuaimiya and Al Bustan also went down from AED 260k to AED 237.5k and AED 470k to AED 436k respectively.
In terms of the popular areas with apartments for sale in Ajman, the neighbourhood of Ajman Downtown once again takes the top spot. Sales prices across the board for this community experienced marginal changes. The average cost of 2-bedroom apartments for sale in Ajman Downtown went down from AED 340k in Q4 of 2018 to AED 325k this quarter. The prices went up slightly for studios from AED 170k to AED 175k and prices were unchanged for 1-bed units at AED 260k.
Al Rashidiya is the second most sought-after area for investors thinking of buying flats in Ajman. Here the average prices for studios and 2-bedroom apartments stand at AED 205k and AED 355k. Only the average sales prices for 1-bedroom apartments in Al Rashidiya saw a hike of 6.1% from AED 245k in the last quarter to AED 260k now, which could be attributed to the handover of the luxury apartment units in Oasis Tower.
Garden City comes in third for buyers looking to purchase flats in Ajman and is the only area with the most significant decrease for 1-bedroom units. As for the average sales prices for the other units, the cost of studios in Garden City went down from AED 150k to AED 140k, while 2-bedroom units stand at AED 225k.
Al Sawan, Al Nuaimiya, Corniche Ajman, Emirates City, Sheikh Maktoum Bin Rashid Street, Al Bustan and Al Jurf are all other popular areas with flats for sale in Ajman, where the prices decreased between 1-7%.
Al Nuaimiya offers the highest ROI for apartment sales in Ajman
From the list of the 10 most popular areas for investing in the apartments in Ajman, Al Nuaimiya offers the highest ROI in Ajman at 13.8%. This is followed by a 9.7% ROI for the apartments in Garden City. Ajman Downtown, which is the most popular area for investing in Ajman’s apartments also offers high rental yields at 9%. Bayut’s report for property price trends in Ajman also shows that apartments in Al Corniche Ajman and Emirates City also offers high rental yields for investors at 8.7%.
PROPERTY PRICES IN AJMAN’S REAL ESTATE MARKET FOR RENTING APARTMENTS
Moving on to the property price trends for the rental apartments in Ajman; the most significant changes are a 9.1% decrease in rents for studios in Al Jurf, where prices went down from AED 17k in Q4 2019 to AED 15k now. The other notable price falls were at the 6% margin for 1-bed units in Al Sawan from AED 30k to AED 28k followed by studios in Garden City from AED 15k to AED 14k.
For Q1 2019, Al Nuaimiya was the most popular area to rent apartments in Ajman where prices experienced minor decreases for 1 and 2-bed units which are currently priced at AED 21k and AED 33k respectively. The rents for studios in Al Nuaimiya experienced a marginal increase from AED 16.5k in Q4 of 2018 to AED 17k in the first quarter of the year.
Ajman Downtown ranked second for the popularity of apartment rentals in Ajman. Here the most notable decreases are at the 6% margin for rents for studios and 2-beds in Ajman Downtown, where prices went down from AED 17k to AED 16k and AED 34k to AED 32k respectively. Rental prices for 1-bedroom flats in Ajman Downtown experienced a minimal change and stand at AED 23k.
Located close to the Ajman – Sharjah border, the community of Al Rawda took the third spot when it comes to flats for rent in Ajman. Here the rental prices for studios and 1-bedroom units remain unchanged at AED 14k and AED 22k respectively. Only the rents for 2-bedroom apartments in Al Rawda saw a dip of 5.4% and went from AED 28k in the previous quarter to AED 26.5k now.
The other popular areas for renting apartments in Ajman include Al Rashidiya, Al Sawan, Garden City, Al Jurf, Emirates City, Al Mowaihat, Corniche Ajman. Here studios in Al Rashidiya also dropped at the 6% margin from AED 17k to AED 16k. The only areas that did not see a change for its rents in the Ajman property market include Al Mowaihat and larger units in Al Rashidiya, Al Jurf and Emirates City.
TOP AREAS TO BUY AND RENT VILLAS IN AJMAN
For the investors looking to buy villas in Ajman, Al Mowaihat stays as the most popular area for villa sales in the first quarter of 2019, accounting for 40.1% of total searches. The prices for the villas for sale in Al Mowaihat start at AED 1M according to Bayut’s current listings. Following Al Mowaihat, Al Rawda is in the second spot accounting for 33.5% of searches. This time Al Yasmeen takes the third spot accounting for 8.7% of searches closely followed by Al Zahraa (7.1%) and then Al Jurf (3.6%). The other popular areas by investors looking at investing in the houses in Ajman include Al Hamidiyah, Musherief, Al Nuaimiya, Al Rashidiya and Corniche Ajman.
As for tenants, the top area for villa rentals in Ajman is Al Rawda, gathering 40% of searches by Bayut’s users. The starting prices for the houses for rent in Al Rawda is AED 50k for a 3-bed villa, as per the current listings on Bayut. Al Mowaihat is the second most popular for villas rentals in the Ajman real estate market accounting for 24% of searches by tenants. This is followed by Al Jurf (10%), Al Hamidiyah (4.9%) and Al Nuaimiya (4.7%). The other popular areas for renting houses in Ajman include Al Zahraa, Musherief, Al Rashidiya, Al Bustan, and Al Yasmeen.
BEST OFF-PLAN PROJECTS IN AJMAN
Bayut’s real estate market report for Q1 2019 for Ajman reveals that the area of Emirates City is the most popular project with off-plan properties in Ajman. Within Emirates City, the Paradise Lakes Towers attracted the most attention from potential investors accounting for 49.1% of the searches. Investors looking to purchase properties in this off-plan project will find the buying prices for an apartment in Paradise Lakes start from AED 145k for a 1-bedroom unit, as per Bayut’s current listings.
Ajman Uptown is the next most popular off-plan project in Ajman that got significant interest from potential investors. Here Erica 1 had the highest number of searches gathering 33% of the searches. Other off-plan developments in Ajman that caught the attention of buyers looking to invest in the Ajman property market include Al Helio, Corniche Ajman and Al Rashidiya.
FORECAST FOR Q2 2019
Haider Ali Khan, CEO of Bayut, said: “In recent years the Ajman property market has grown substantially, offering investors and renters a large portfolio of properties to choose from. While prices on average have decreased, there have been a number of recent deliveries in Emirates City and Al Nuaimiya to keep Ajman in the limelight. From a value perspective, Ajman is easily one of the most attractive markets to invest in the UAE and perhaps even globally, with some areas reporting ROI of over 10%. With a flourishing free zone and a lucrative property market to attract potential buyers, we can expect Ajman to grow even further in the months to come.”
That brings us to the end of the Q1 2019 market report for Ajman and conclusively, the series of Bayut’s property market reports. If you are looking to lease or invest in the other emirates, take a look at our published market reports for Abu Dhabi, Dubai and Sharjah to make an informed decision.
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Disclaimer: The above report on the property prices in Ajman is based on properties advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Ajman.