Sharjah, Ajman 'top property markets for families': report

Overall prices continue to show moderate decreases with certain areas such as Ajman Downtown and Muwaileh showing promising signs of stability, it stated.

Popular areas such as Al Majaz, Al Khan, Corniche Ajman and Emirates City are seeing a marginal increase in rent, indicating a rising demand for both luxury waterfront communities and those with easy access to Dubai, said the report.

In the third quarter, the sales and rental prices for apartments in Sharjah have followed the trends seen in the first half of the year. Prices remain affordable for both tenants and home buyers looking at flats in Sharjah’s popular neighbourhoods, stated Bayut.

For the rental market, family-friendly neighbourhoods such as Al Nahda and Al Qasimia experienced decreases between 3 - 8%. However, rents in popular investment zones such as Al Khan, Al Majaz and Al Mamzar, have experienced increases between 5 - 8%, which can be attributed to their increased demand, allowing landlords to negotiate better rents, said the report.

For apartment sales, the average price per square foot in the popular neighbourhoods witnessed declines ranging from 8-12%, it added.

According to Bayut, in terms of popularity, Al Majaz is the preferred area for both buying and renting apartments in Sharjah.

Al Majaz also offers investors a good ROI of 7.7%. For villas in Sharjah, the area of Hoshi received the most number of searches from investors and Al Azra is now the most popular choice for renters. Investors looking for good rental yield for villas should note that Barashi offers an average ROI of 6.7%, stated the report.

On Ajman, bayut said the prices for apartments echoed a similar trend to what was seen in Sharjah.

For rental apartments, declines have been within 1 - 5%. The only noticeable drop has been for two-bedroom apartments in Al Sawan, where rents went from Dh38,000 in Q2 2019 to Dh36,000.

As for apartment sales, the price per square foot for the most popular areas have experienced marginal decreases within the 1 - 6% range.

The only notable changes are an 8.26% increase in the average price per square foot in Al Nuaimiya, where prices increased from Dh218 to Dh236 this quarter.

This neighbourhood has been consistently popular with investors because of its high demand with tenants, making it a good option for those looking at healthy rental returns. On average investors can expect a rental yield of up to 10% with their properties in Al Nuaimiya, which is one of the highest in the country, stated the report.

In Q3 2019, Al Nuaimiya was also the most popular area with tenants looking at apartments in Ajman, whereas Ajman Downtown is the favoured choice for buyers/investors. Al Mowaihat remains the favoured choice for buying villas in Ajman while tenants are most interested in the rental villas in Al Rawda.

In terms of RoI, Al Nuaimiya and Emirates City deliver healthy rental yields at the 10% mark, said the UAE portal in its report. For those looking for a good ROI on villas, Al Zahia offers an average rental yield of 9.5%, it added.

Bayut CEO Haider Ali Khan said: "The property market in both Sharjah and Ajman remain healthy and attractive for buyers and tenants, echoing the trend we have observed over the course of the year."

"Property prices in both these emirates usually resonate with the trending prices of Dubai; when landlords get creative and offer attractive deals to tenants in Dubai, there is a natural tendency for landlords in Sharjah and Ajman to offer similar incentives, in order to maintain their appeal with potential renters," said Khan.

"Buyers/investors can also take advantage of this competitive market and lock in on good prospects at reasonable prices with high rental yields," he added.-TradeArabia News Service