Здание в Аль Джурф，Аль Журф 3, 11 спален, 26000000 AED - 16358732

This property is a new residential and commercial building in Al Jurf Industrial Area 3, Ajman. Its strategic location, on the second block of Sheikh Mohammed Bin Rashid Road, provides easy access and makes it ideal for real estate investment, especially given the large number of residential units and shops.

Completed in 2024, the building is relatively new, a significant advantage for investors. Newer properties typically require less extensive maintenance than older buildings, and their recent construction enhances their appeal to tenants and competitiveness in the market.

The land area is 13,455 square feet, ample for a project of this size. The building comprises a ground floor, two parking levels, and six residential floors. This design offers a large number of residential units and ample parking, a crucial feature for buildings with many apartments, as ample parking improves residents' convenience and reduces parking issues around the building.

As for the building's layout, it contains 48 one-bedroom apartments and 24 two-bedroom apartments, bringing the total number of residential units to 72. This variety of unit types makes the property suitable for a wide range of tenants. One-bedroom apartments are ideal for individuals, couples, and small families, while two-bedroom apartments target larger families. Therefore, the building's income is not dependent on a single tenant type.

In addition to the apartments, the building includes six commercial units, a significant investment opportunity as it provides another source of income alongside residential rentals. Shops located within a residential building can serve both the building's residents and the surrounding area, depending on the permitted activities, the location of the shops, and their sizes. Thus, the presence of commercial activity diversifies the property's revenue streams, reducing its reliance on the apartments.

The building also offers 55 parking spaces. With 72 apartments and 6 shops, the number of parking spaces is less than the total number of units. Therefore, when professionally evaluating this investment, it's crucial to understand the parking allocation, whether some apartments have designated parking spaces, if there are additional parking spaces available, or the possibility of using surrounding parking areas. It's also essential to understand the municipality's parking requirements and licensing regulations. These details don't diminish the property's value per se, but they are important for accurate appraisal before purchase.

Financially, the property generates an annual income of AED 2,350,000, while the asking price is AED 26,000,000. Based on these figures, the total annual return on the purchase price is approximately 9.04%, before accounting for operating expenses, maintenance, services, vacancy periods, or other costs. In other words, if the annual income of AED 2.35 million is the actual and stable total income, the investor would be purchasing the property at a price equivalent to approximately 11.06 times the annual income.

To simplify the investment, a property priced at AED 26 million with an annual income of AED 2.35 million suggests good income potential relative to its purchase price. However, the true net return is the most important figure for the investor, not just the gross return. If annual expenses such as maintenance, property management, insurance, electricity for common areas, elevators, air conditioning, utilities, and any other expenses incurred by the owner are factored in, the net income will be less than AED 2.35 million, resulting in a net return of less than 9.04%.

When evaluating the deal, it's crucial to verify the nature of the stated income: Is the AED 2,350,000 actual income earned over the past 12 months, or is it projected income at full occupancy? This is a critical point. If the figure represents actual rent collected from existing contracts, it provides the investor with a clearer and more secure view of the cash flow. If it's based on projected rental rates, these should be compared to actual leases and the building's current occupancy rates.

It's also important to consider the average unit income. If we divide the total annual income by just 72 apartments, excluding the income from the retail shops, the average annual income per apartment is approximately AED 32,639, or roughly AED 2,720 per month, as a theoretical average. However, this doesn't mean every apartment rents at this price, as the retail shop income is included in the AED 2.35 million figure. Furthermore, two-bedroom apartments are assumed to have different rental rates than one-bedroom apartments. Therefore, the actual rental rates should be consulted to determine the contribution of each unit type to the income.

The retail shops become increasingly important when analyzing income. If the six shops are leased under stable contracts and at good rents, they represent an additional source of income that can help support the property's overall return. Having a commercial space on the ground floor can also enhance the building's appeal to residents, provided the businesses are suitable for the area and do not cause any disturbance to the residents.

Overall, the asking price of AED 26 million should not be viewed solely based on the land area or the number of apartments, but rather evaluated as an income-generating investment asset. The investor here is not simply buying land and a building, but rather 72 residential units, 6 retail shops, and a declared annual cash flow of AED 2.35 million. This makes the most important valuation elements income stability, occupancy rate, lease terms, current rental values, annual expenses, building condition, quality of finishes, and future operating costs.

If the building is fully leased or has a high occupancy rate, and the leases are documented and the AED 2.35 million income is actual and stable,