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.
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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.
Marin8 May 2010 12:02jump to comments