Business | Property

Flat rentals fall flat in Ajman

Rents in Ajman have dropped by more than 40 per cent

  • By Salam Al Amir, Staff Reporter
  • Published: 00:00 May 6, 2010
  • XPRESS

  • Image Credit: Xpress /Ahmed Ramzan
  • The Nuamiya area in Ajman

Ajman: Rents in Ajman have dropped by more than 40 per cent this year, real estate agents and a senior official at the Ajman Municipality and Planning Department said.

Mariam Al Rumaithi, Director of the Rent Contracts Authentication Department at the municipality, said that based on data culled from rental values of tenancy contracts they have stamped, rents have dropped by almost 40-50 per cent this year.

Due to the huge number of tenants moving from expensive apartments in the emirate to cheaper ones that offer better facilities, the municipality has also seen a spike in the number of contracts authenticated.

"Some have even moved to Ajman from neighbouring emirates," she said.

Rifaat Abdul Rahman of Aman Real Estate in Ajman said the drop in rents is frustrating property owners who are unable to reverse the supply glut. He said property owners are now competing to provide tempting offers to potential tenants, with some offering furniture for free with any two-bedroom flat leased.

Two-bedroom units leased for not less than Dh55,000 before the credit crunch now go for Dh32,000 to Dh38,000, depending on location, said Abdul Rahman.

Ajman resident Younis Mohammad, 34, said he recently moved from a one-bedroom apartment he rented in 2007 for Dh32,000 to a two-bedroom apartment for Dh27,000.

Shireen Mosalami, 30, said that she moved to a four-bedroom villa in Ajman for Dh40,000 from a Dh34,000 one-bedroom apartment in Sharjah.

Comments (7)

  1. Added 20:38 May 6, 2010

    For a country to have a healthy economy, housing rents should be affordable. It should not consume 50-60 per cent of the tenant’s monthly income so that people have some extra money to spend on furniture, clothes, electronics, flower pots, etc. There is chain reaction involved here: If one does not have any extra money to spend on things, how can furniture shops and others run their businesses or pay their staff? The shop owner will have to close down business and lay off staff, and that will eventually be a big blow to the country’s economy. People must spend money to keep the economy rolling and this is only possible when people have extra money to spend.

    Marin, Sharjah, United Arab Emirates

  2. Added 20:30 May 6, 2010

    I used to live in Ajman but have now moved to Sharjah like many other people who are doing the same. There are two main reasons for this: First, the quality of water is very bad there and, second, the commuting difficulties to and from Emirates Road. Ajman has too many signals, and reaching Emirates Road takes 15 - 20 minutes. Also, the emirate has only one-lane roads to and from Emirates Road.

    S N Hashmi, Ajman, United Arab Emirates

  3. Added 15:12 May 6, 2010

    Ajman people are lucky. In Abu Dhabi, the rents are still too high. I wonder when they will ever come down. One can only pray.

    Irfan, Abu Dhabi, United Arab Emirates

  4. Added 12:45 May 6, 2010

    It is really good news for many people who are having to struggle a lot just to pay the rent.

    SAYED ABDULLA , Dubai, United Arab Emirates

  5. Added 12:16 May 6, 2010

    Housing rents are very high in all of the UAE. They should be decreased so that people can afford them in order to ‘survive’ in the country. It’s good news that rents are dropping in Ajman and I just hope the same will be the case in other parts of the UAE too. Rents should be what they were three years back.

    Anwar, Abu Dhabi, United Arab Emirates

  6. Added 09:59 May 6, 2010

    What about Al Ain area? Hope the prices of flats and villas fall too.

    Md Farhad Hussain, Al Ain, Bangladesh

  7. Added 03:34 May 6, 2010

    I think it is serious matter. The authorities should restrict supply of plots to builders. The economy of the country will be negatively affected if more new buildings come up even as existing buildings remain empty. I think the authorities should develop low-rise buildings with proper infrastructure and lots of greenery.

    Neeraj Punhani, Shaoxing, China

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