Despite the stiff competition from bigger markets Dubai and Abu Dhabi, both the northern emirates of Sharjah and Ajman remained strong contenders for affordable, family-friendly living in the UAE last year, according to Emirati property portal Bayut.

Transactions have also gone up in these cities thanks to the attractive prices and innovative resolutions passed by the governments in both cities, state Bayut in its end of year market report for 2019.

According to the Sharjah Real Estate Registration Department, 61,357 transactions were recorded last year, up 13.4% compared to the property transactions in 2018.

Sharjah-based real estate developer Arada also reported a 33% increase in sales in 2019, showing a growing interest in the primary segment of the northern emirate’s real estate market.

Both Ajman and Sharjah have benefitted from the increased attention thanks to the new long-term visa rules, which gives real estate investors the added bonus of longer residency permits, it added.

"When it comes to the popular locations to live in Sharjah and Ajman, areas such as Al Majaz, Al Khan, Ajman Downtown and Al Nuaimiya have retained their appeal over the course of 2019 with both buyers and tenants, thanks to prices becoming more affordable compared to the year before," remarked Bayut CEO Haider Ali Khan.

The price trends for renting and buying apartments in Sharjah for 2019 are in line with the patterns seen in the neighbouring emirate of Dubai, he stated.

When it comes to Sharjah’s rental market, Al Majaz, Al Taawun and Al Nahda have held strong in 2019, with competitive prices ranging between Dh17,000 to Dh20,000 on average for studios, Dh25,000 to Dh28,000 for one- and Dh33,000 to Dh37,000 for larger two-bedroom units.

Similarly, for apartment sales, Bayut said Al Majaz, Al Khan, Al Nahda and Al Taawun have remained popular with buyers and investors with average price per sq ft of Dh381, Dh430, Dh352 and Dh362 respectively.

The only area that has experienced an increase in price per square foot is Muweilah, rising by just over 6% to Dh975 last year.

There are multiple factors that have attracted a large number of investors to the area, including the availability of newer, bigger properties close to the Sharjah University City, said the report.

For villas in Sharjah, Hoshi has remained the most sought after option with potential buyers, while Al Azra has retained the interest of tenants, it added.

According to Bayut, the areas which continue to offer high ROI in Sharjah include Al Taawun and Al Majaz, with rental yields of 7% and above.

"The primary market in Sharjah has also picked up in 2019, with areas such as Aljada, Muwaileh and Sharjah Waterfront City garnering interest," remarked Khan.

The superior finishing and good payment plans for projects such as Maryam Island and Al Zahia have also attracted expat residents wanting to make long-term investments in the UAE’s cultural capital, he added.

On Ajman, AByut said the emirate had sustained interest from buyers and tenants with prices becoming more competitive across 2019.

In the rental market, established districts such as Al Nuaimiya, Ajman Downtown and Al Rashidiya, which are closer to the centre of the city, have remained popular options, it stated.

Prices across the board have decreased by an average of 8% plus, in line with trends observed in other emirates.

Ajman Downtown and Al Rashidiya have also dominated the sales segment, along with Emirates City. The price per square foot to buy apartments in Ajman ranges between Dh200 to Dh500, making it a good option for those on budget, it added.

"For those interested in independent houses in Ajman, Al Mowaihat has retained its spot as the top choice for potential homeowners. Al Rawda has continued to attract tenants looking for larger, family-friendly units," revealed Khan.

"Al Nuaimiya is a good option for investors looking to get good rental yield with an ROI of 11%. Other areas with healthy ROI include Garden City, Emirates City and Ajman Downtown," he stated.

The primary market in Ajman continues to offer upscale units in upcoming areas such as Ajman Uptown and Emirates City, he added.

According to Khan, the emirates of Sharjah and Ajman closely follow trends in Dubai and Abu Dhabi.

"Similar results were observed throughout 2019 with prices declining in Sharjah and Ajman, however growth in terms of inventory and supply was also seen in these markets," he noted.

"This year, there have been several handovers in both cities, including reputed projects such as Al Zahia and Nasma Residences in Sharjah, and the Ajman Corniche Residence in the UAE’s smallest emirate," he added.-TradeArabia News Service

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