Covid-19 and its precautionary measures have brought drastic new changes for the overall economy including the real estate sector. Even with a global pandemic dominating the first half, the Sharjah and Ajman property markets were only moderately impacted and remained affordable for prospective buyers and tenants, according to UAE property classifieds website.
Property prices on the whole have experienced a moderate decline mirroring the trends observed in the other emirates while the ROI in both emirates have remained impressive, going up to 9.8% in the case of some communities in Ajman and well over 7% for established districts in Sharjah, stated Bayut in the H1 2020 report.
During the first six months, Sharjah's property market experienced moderate declines in the sales and rental prices for apartments.
Prices for the rental apartments in Sharjah fell on average between 2 - 10% in the family-friendly areas like Al Majaz, Al Nahda and Muwaileh, statred the report.
The average rent for studio flats in Al Majaz, the most popular community to rent flats in Sharjah, has averaged at a competitive AED 18,000, while rents for one- and two-bed flats have decreased slightly to AED 26,000 and AED 35,000 respectively.
There have also been no prominent increases in rent in any of the popular areas, putting tenants on better bargaining grounds.
The average price per square foot for apartments for sale in Sharjah have decreased on average by 2- 7% in most areas, with the exception of Al Majaz where the price per square has increased slightly by 3.1% to average at AED 385.
Al Majaz has also continued to reign as the most popular area for investors to buy apartments in Sharjah. It is, however, Al Taawun with a 6.9% ROI that offers the highest rental yield for flats in Sharjah.
In terms of villas in Sharjah, Al Rahmaniya has emerged as the most popular choice for home buyers and investors, while Sharqan has remained the most popular choice with tenants.
The villas in Barashi have been offering an impressive average ROI of 7.3% for investors looking to capitalise on healthy rental returns.
On neighbouring Ajman, Bayut said the prices for apartments in the emirate have followed a trend similar to that observed in Sharjah.
In H1, the well-connected neighbourhood of Al Nuaimiya remained the most preferred area for tenants in search of flats in Ajman, stated the Emirati portal in its H1 report.
While most of the other popular neighbourhoods such as Ajman Downtown and Al Rashidiya have experienced marginal declines in rent, the average prices in Al Nuaimiya have remained fairly stable, pointing to consistent demand, it added.
The average rent for studios and one-bedroom flats in Al Nuaimiya have remained steady at AED 15,000 and AED 20,000 while the annual rents for two-bedroom flats have dropped marginally by 3% to AED 29,000.
Ajman Downtown has continued to be the popular choice with those looking to buy apartments in the emirate. Compared to H2 2019, the price per square foot for apartments in the area has decreased marginally from AED 224 to AED 214 in the first six months of the year.
The price per square foot for buying apartments in Ajman’s other popular areas have also experienced marginal decreases within the 2-7% range. The only notable change was a 6.8% increase in the average price per square foot in Al Nuaimiya, where prices increased from AED 339 to AED 362 during the first half of 2020.
This neighbourhood has seen an influx of new properties and remains highly sought-after by tenants making it a popular hub for property investment. In terms of ROI, it’s apartments in Garden City that have offered the best rental yields of 9.8%, which is one of the highest in the country.
Investors and home buyers interested in buying villas in Ajman have favoured Al Mowaihat as their top choice, while Al Rawda has continued to attract the most interest from tenants. Al Helio with an ROI of 6.7% has been a healthy prospect for investors looking for high rental yields.
CEO of Bayut and dubizzle Haider Ali Khan said: "A general trend that we have observed as a result of the measures taken to contain COVID-19 across the UAE is that people are now looking to upgrade to more private properties."
"Given that prices are generally more affordable in Sharjah and Ajman, the homes in these well-connected emirates have become increasingly attractive for both investors and tenants. Even with the overall decrease in rent, both Ajman and Sharjah boast impressive ROIs, which make them attractive prospects to investors looking for long-term gains," he added.-TradeArabia News Service
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