Building for sale in Al-Hamidiyah, area 7265 sq m / Income after rental 10% / Building age 1.5 years

A distinctive mixed-use residential and commercial building is for sale in the Al Hamidiya area of Ajman. This is a strong investment opportunity for those seeking a relatively new, established, and income-generating property. Its strategic location, situated on a corner lot behind the Ajman Traffic Department, is a significant advantage for investment properties, especially those with mixed uses including retail shops and diverse residential units.

The building enjoys a prime location in Al Hamidiya, specifically behind the Ajman Traffic Department, providing clear visibility and easy access to roads, services, and amenities. Its corner location further enhances its value, offering greater exposure and openness to the interior, highlighting the retail spaces, improving accessibility, and providing the residential units with better ventilation and natural light, thanks to the building's layout.

The land area is approximately 675 square meters, equivalent to roughly 7,265 square feet. This is a very generous size for an investment building with this number and variety of units. Most importantly, the building is relatively new, only about a year and a half old, a significant advantage for investors. Purchasing a modern building typically reduces the likelihood of significant maintenance costs associated with its age. However, it's essential to inspect the building's condition and verify warranties, maintenance plans, and operational procedures.

Regarding permits, the building has a ground floor plus eight stories, and the existing ground floor plus eight stories is a crucial factor in property valuation as it reflects the building's structural capacity and the stated permit. Nevertheless, the buyer should review the official plans and licenses to confirm all details concerning the number of floors, permitted uses, and allowed areas.

The building boasts a diverse range of units, including eight retail shops, four studios, a guard's room, one one-bedroom apartment, five two-bedroom apartments, and two three-bedroom apartments. This variety is a major investment strength, providing multiple income streams and catering to different tenant segments, whether through the retail shops, studios, or larger family apartments.

The building's current annual income is approximately AED 562,800, which is based on current earnings. If the units are re-leased at the same market value, the projected annual income is approximately AED 675,360. This represents a difference of approximately AED 112,560 annually between the current income and the projected income after re-leasing. This translates to a potential income increase of roughly 20% compared to the current income, assuming all units are available for rent at the stated values and in accordance with applicable regulations and contracts.

The asking price for the building is AED 6,500,000. Based on the projected annual income of AED 675,360, the total return on the asking price is approximately 10.39%, slightly exceeding the previously mentioned 10%. If the return is calculated based on the current income of AED 562,800, the total current return is approximately 8.66% annually.

One of the deal's key strengths is that the investor isn't solely reliant on current income. According to the figures, there's an opportunity to increase income to approximately AED 675,360 annually by reaching the targeted rental levels. This makes the property more attractive from an investment perspective, especially if the projected income is realistically achievable in the market.

In other words, the asking price of AED 6.5 million is roughly 9.62 times the projected income of AED 675,360, a metric the investor can use when comparing this building to other investment properties. Furthermore, the relatively modern building, corner location, and numerous shops and residential units offer several compelling factors for consideration.

The presence of eight retail shops is particularly significant, as the corner location on two streets allows them to benefit from high visibility and increased foot traffic. The diverse residential units provide income from a wider range of tenants. The availability of two- and three-bedroom apartments also makes the building suitable for families, not just individuals or employees.

From an investment perspective, the building's relatively young age of only about a year and a half is a significant advantage. This means the investor acquires a relatively new building without having to purchase land and wait years for a new project to be completed. Consequently, the buyer can benefit from the current rental income, with the potential to increase future revenue if the targeted rental rates are achieved.

In general, this building can be described as a modern residential and commercial investment in Al Hamidiya. It occupies a corner lot on two streets, behind the Ajman Traffic Department, with a land area of 675 square meters (approximately 7,265 square feet). The building has a permit for a ground floor plus eight floors and includes eight retail shops and a variety of residential units. The current rental income is AED 562,800, with a target rental income of AED 675,360. The asking price is AED 6.5 million.

Based on current figures, the current gross yield is approximately 8.66%, while the expected gross yield after reaching an income of AED 675,360 is approximately 10.39%. Therefore, the statement "10% net yield" is very close to the actual calculation. However, it is important to differentiate between gross and net yield, as net yield is affected by maintenance, management, and service expenses, as well as any other expenses or fees incurred by the owner.

Before making a purchase decision, it is essential to review existing lease agreements, rental values per unit, occupancy rates, potential rent increases upon renewal, shop leases, annual expenses, licenses and plans, and the building's condition and warranties. If the expected income of AED 675,360 is confirmed. . .