Rental prices have dropped in Sharjah and Ajman, classifieds platform dubizzle says in its first report on the country’s northern emirates. The UAE website compared first-quarter data for this year with 2015, finding that rents for one-bedroom aparments in Sharjah fell almost 4 per cent, while some neighbourhoods of Ajman saw a drop of 21 per cent. Indeed, the report shows prices in these Emirates are now as much as 33 per cent lower than in prime Dubai areas.
The health of Dubai’s real estate market has a ripple effect on the property market in the northern emirates, predominately Sharjah and Ajman due to their close proximity. dubizzle’s report findings indicate an overall decline of prices in Sharjah and a levelling off of prices in Ajman as housing are more affordable across the country, the report said.
“With the highest price for a one-bedroom apartment rental in Ajman priced at an average of Dh39,000 and Dh41,000 in Sharjah, these prices are non-existent in Dubai and are a significantly lighter blow to the wallet at 33 per cent cheaper than a one-bedroom apartment in one of the more affordable districts in Dubai, International City and 200 per cent cheaper than a one-bedroom apartment in prime district Downtown Dubai. The affordable rental prices in both Sharjah and Ajman indicates promising investment opportunities in the Northern Emirates should the legal framework be clearly defined to boost investor confidence,” says Ann Boothello, Senior Product Marketing Manager for Property at dubizzle.
“Although dubizzle’s data showed a significant decline in prices in certain districts in Sharjah, and Ajman, the overall decline is mild as these Northern Emirates still remain a viable option for UAE property seekers and offer more economical options than its neighbour Dubai for those UAE residents on smaller income brackets,” she adds.
How the emirates fare
Sharjah is a growing, affordable option for professionals working in Dubai, the report says. It shows that property rental prices in Sharjah’s coastal areas have significantly decreased compared to the first quarter of 2015. Al Mamzar and Al Majaz saw rental price drops of 7 per cent each, while Al Qasba has seen prices drop 13 per cent. Al Qasba also witnessed a 39 per cent decrease in sale prices per sq ft.
Overall, real estate transactions in Sharjah witnessed a 44.6 per cent increase in 2015 - worth Dh25.5 billion – and the Emirate saw a 42 per cent increase in evaluation enquiries, the report said, quoting the Real Estate Registration Directorate of Sharjah.
The Sharjah Investment and Development Authority, Shurooq, recently revealed that when comparing 2014 and 2015 figures, Sharjah's real estate sector had successfully developed approximately 84.5 million square metres in land space, leading to the establishment of over 60 real-estate projects, this contributing to the leveling softening of property prices in the Emirate.
Meanwhile, Ajman has emerged as the most affordable emirate for property rental prices despite increases spotted in several districts. The report also reveals a drop in rental and sale prices across Ajman, with the Al Butain community experiencing a 43 per cent decrease in sale price per sq ft and 19 per cent decrease in rental prices per sq ft while, in other areas such as Al Rashidiya, rental prices remained stable.
Ajman’s Al Nakhil area witnessed an increase in rental prices across the board by 10 per cent and 3 per cent for one-bedroom and two-bedroom apartments respectively. The report also revealed an increase of 8 per cent for one-bedroom apartments and 21 per cent for two-bedroom apartments rental prices in Al Hamriya.
“Although rental prices increased by 10 per cent in Al Nakhil, Ajman, the area is still more of an economical option than others, priced at Dh33,000 annually for a one-bedroom apartment. The increase in rental prices could indicate that, although prices are dropping across the emirates, there’s no doubt Ajman housing is considered the most affordable; there are those who will not opt to upgrade their home at a time like this, and will instead grab the best deal to increase their long-term savings and live more comfortably, whether they are Ajman residents or from neighbouring cities, Sharjah or Dubai,” says Boothello.
The website has over over 5 million unique visitorsa month, with an average of two visits per week, per visitor and an average duration of 16.5 minutes per visit, and over 1.5 million unique visitors to property section alone.The site is billed as the biggest properties marketplace in the UAE, with over 1000 real estate agencies markettheir properties for rent and sale.
