Stock Nahda
Newly completed apartment buildings in Sharjah and Ajman have kept rents in a tight check. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Sharjah’s Al Nahda area is the most popular among tenants as rents dropped across the board, says a report from Bayut-dubizzle. The average rent for studios in Al Nahda dipped from Dh17,000 to Dh16,000 in 2021, while there were notable drops of 9.61 per cent and 8.32 per cent at one and two-bedroom apartments respectively. Other prominent areas like Al Majaz and Al Taawun have also attracted tenant interest as overall rents remained competitive.

“Both Sharjah and Ajman have continued to offer an excellent inventory of reasonably priced, family-friendly units in established city centres,” said Haider Ali Khan, CEO of Bayut and dubizzle. “The stock in Sharjah has grown by a considerable margin of over 90 per cent to cater to the growing demand for units.”

Al Khan has been a firm favourite among investors interested in buying apartments in Sharjah. In comparison to 2020, the sales price-per-square-foot for apartments in most of the popular areas, including Al Majaz and Aljada, increased moderately between 1.49 per cent and 11.87 per cent. However, a minor decrease has been observed for apartments in Al Nahda, where prices dipped 5.32 per cent in 2021.

Al Majaz reported the highest RoI (return on investment) when it comes to the most searched areas for apartment sales in Sharjah, offering rental returns of up to 6.33 per cent. In terms of villa sales and rentals, Al Tai emerged as a firm favourite for tenants and buyers alike. Meanwhile, Muwaileh attracted investor interest with a healthy RoI of 5.61 per cent.

Ajman prospects

The rents for apartments in Ajman experienced moderate declines in most areas. Al Nuaimiya has been the most popular area for rented apartments. The decrease in rents by up to 8.62 per cent and the area’s amenities ensured that demand in Al Nuaimiya remained consistent throughout 2021. The rent for studios in the area has gone down slightly, from Dh15,000 to Dh14,000 in 2021, while rents for one- and two-bed apartments averaged at Dh19,000 and Dh28,000, respectively.

“The inventory in Ajman has also increased by close to 20 per cent in the last year alone,” said Khan. “Traffic across the board for the northern emirates and Sharjah has also grown consistently, coming close to 15 million sessions in 2021, pointing to the healthy demand in the market.”

Other areas like Al Rashidiya and Al Jurf also generated a lot of interest amongst tenants. In Rashidiya, rents decreased by 2 per cent to 5 per cent, while rents for Al Jurf apartments dropped by up to 2.7 per cent.

Apartments for sale in the most popular areas also became more affordable during 2021, with Al Rashidiya taking the greater chunk of buyer interest. The price per square foot for apartments decreased by up to 33 per cent, subsequent to the rise in inventory of low-priced units. Sales price per square foot in Ajman Downtown has also gone down by 2.12 per cent. On the flip side, apartment price per square foot in Corniche Ajman increased by 3.23 per cent.

Garden City and Ajman Downtown, with an RoI of over 9 per cent, have attracted potential buyers looking for healthy returns on buy-to-let apartments in the emirate.