Ajman, which is located among prestigious seven emirates of the United Arab Emirates, has been steadily gaining popularity as a promising hub for real estate investment. Although it’s the smallest emirate in the UAE, it is well-known for its serene coastal charm and picturesque landscapes. Thus, Ajman real estate offers a lot of strategic advantages to savvy investors looking for lucrative investment opportunities in the property market.
Ajman stands out as a symbol of opportunity and growth in the ever-solving real estate sector of the UAE, characterized by its innovative strategies, advanced policies, and a wide range of property choices.
In this comprehensive blog, we will discuss all the reasons why Ajman’s real estate sector has become the talk of the town among discerning investors. Apart from Ajman’s surface allure of pristine beaches and modern developments, we will go deeper into the core strengths and unique advantages that one would get by investing in Ajman and how this would be a smart choice for real estate investors.
Why is Ajman a Thriving Commercial and Investment Hub?
First, Ajman is located strategically within the UAE’s dynamic economic ecosystem, which cannot be overstated. It is positioned along the Arabian Gulf coast and in an area very close to bustling Sharjah and Dubai and thus enjoys seamless connectivity and accessibility to major business districts, transportation networks, and leisure destinations.
This strategic advantage enhances Ajman’s appeal as a residential destination and also fuels its potential as a thriving commercial and investment hub.
Apart from the emirate’s strategic location, its progressive policies and investor-friendly regulations have been instrumental in creating a positive environment for real estate investment. Furthermore, freehold ownership for expatriates in specified areas, simplified property registration processes and attractive financing options, has positioned Ajman as a welcoming and supportive destination for real estate investors seeking long-term growth and returns.
Additionally, the diversity of property offerings in Ajman real estate further amplifies its appeal to a wide spectrum of investors with varying preferences and objectives. Whether it’s waterfront residences with panoramic views, commercial spaces in burgeoning business districts, or modern apartments in integrated communities, Ajman’s real estate market caters to diverse investment strategies and opportunities.
Ajman’s Real Estate Market Report
Ajman’s real estate market is experiencing remarkable growth; it is playing an important role in the flourishing property sector of the UAE. In December 2024, the emirate reported real estate transactions amounting to AED 2.28 billion, reflecting a year-on-year increase of 102%.
- Ajman’s strategic location along with its affordable property options and strong infrastructure make it an attractive and lucrative market for both domestic and international investors.
- Ajman’s real estate market report for 2024 reveals some of the popular areas for buying, renting and investing in this popular emirate.
- Some of the well-known areas in Ajman witnessed substantial per-square-foot appreciation in apartment sale prices, all of which range from 6% to 48%, mainly due to inventory increases and high demand for properties.
- The rental market in Ajman demonstrated comparatively moderate yet positive growth, with an increase in prices for apartments for rent in Ajman recorded between 7% and 54% across some specified locations.
- عجمان showed strong momentum in 2024, backed by an increase in property demand. Houses in Ajman that are for sale in certain areas here recorded a general upward trajectory, witnessing 7% to 65% hikes in average price-per-square-foot.
- The rental market for villas for rent in Ajman’s prime locations experienced significant growth, therefore, increasing up to 50% in popular neighborhoods.
- Family centric communities in Ajman continued to dominate market interest. Some of the key areas attracting real estate investors and tenants in Ajman include Al Nuaimiya, Al Yasmeen, AI Rashidiya and Al Zahya.
- The total value of real estate transactions in the northern emirate of Ajman exceeded AED20.5 billion in 2024, reflecting a year-on-year increase of 21 percent. The most significant sale, valued at AED300 million (around $81 million), took place in the Al Jurf 1 area, whereas the highest mortgage amounting to AED155 million (about $42 million) was noted in the Al Amera area.
According to Ajman Annual Property Market Report by ‘Middle East Economy’ Ajman’s real estate sector recorded 1,853 valuation transactions in 2024, with a total value exceeding AED 8.38 billion.
Al Rashidiya is the most sought-after district for buying flats in the northern emirate. Apartments for sale in Al Rashidiya recorded an average price of AED 416 per square foot, a 17.9% increase from 2023.
Real estate investors in Ajman paid an approximate price of AED 208k to buy 1 BHK flats in Al Rashidiya. The average sales price of 2 and 3 BHK flats here reported AED 296k and AED 397k, respectively.
Downtown Ajman, where one can even find villas for rent in Ajman, ranked as the second most popular destination among buyers who were interested in flats for sale in Ajman.
There has been a 23.7% increase in the average price-per-square-foot for apartments sale in Ajman downtown. On average, investors interested in buying 1 BHK flats in Ajman Downtown paid AED 310k. However, the average amount to purchase 2 BHK apartment was AED 463K, while 3 BHK was available at a price of AED 406k.
There are a few other areas in Ajman where one can buy apartments that included:
- Emirates City
- Al Yasmeen
- Corniche Ajman
- Garden City
- Al Bustan
Areas in Ajman with Lucrative Returns
Ajman’s real estate sector has shown promising returns in prominent areas, presenting appealing prospects for investors. A thorough analysis by Bayut highlights exceptional performers regarding Return on Investment (ROI) within the apartment segment:
- Emerging as the frontrunner, Garden City showcased an impressive projected ROI of 9.98%.
- Solidifying its position as a prime investment destination, villas for rent in Ajman Downtown recorded a noteworthy ROI exceeding 9.37%.
- While offering a more moderate yet stable return, Emirates City presented investors with average rental yields of 7%.
There are a few areas in Ajman that have demonstrated lucrative returns across some specific locations, offering attractive opportunities for real estate investors.
- Garden City has emerged as the frontrunner, with an impressive projected ROI of 9.98%.
- Apartments for rent in Ajman’s Downtown Ajman have become a prime investment destination with a noteworthy ROI exceeding 9.37%.
- Emirates City, which offers a more moderate yet stable return, presented investors with an average rental yield of 7%.
Ajman’s Renting Statistics
The quantity of rental transactions in the first half of 2024 increased 49% in Ajman, while the total value is AED 2.27 billion or $620 million. The growth observed indicates a trend of heightened economic activity within the emirate, alongside sustained growth, as an increasing number of individuals express a favorable interest to either buy or rent properties in Ajman.
According to Ammar Abdul Karim Al Kayed, director of the Rental Regulation Department, there’s a very detailed account of contracts for renting in this period.
- Rents for Houses: AED 1.211 billion
- Rents for commercial business units: AED 989 million
- Investment Renting: AED 80 million
Such varieties, which appear throughout the different types of properties, showcase that growth in Ajman’s real estate is promising for investors and inhabitants alike.
Government’s Contribution in Ajman’s Development
Abdulrahman Al Nuaimi, the Director-General of the Ajman Municipality and Planning Department, articulates that the notable surge in the rental market can be attributed to several key factors:
- Supportive Policies: The government’s supportive policies have initiated projects aimed at stimulating investment within the economy.
- Infrastructure Development: Significant improvements in infrastructure and services have made Ajman a more attractive place for both businesses and residents.
- Strategic Location: Ajman’s advantageous strategic location in proximity to other major cities in the UAE enhances its accessibility for commuters.
- Quality of Life: The enhancement of living conditions and community amenities creates a more inviting atmosphere for new residents in the emirate.
These elements collectively contribute to Ajman’s ongoing appeal as a prime location for living and investment.
Ajman: The Rising Real Estate Hub
A 49% increase in rental growth signifies more than mere statistics; it illustrates the emerging prominence of Ajman within the UAE real estate landscape. The emirate is soon to become:
- An economical alternative to the high-priced emirates of Dubai and Abu Dhabi.
- A vibrant hub for business development, particularly advantageous for start-ups and small enterprises.
- An appealing residential area for families and professionals seeking both quality and affordability.
Final Note
The 49% increase in transactions in the rental market during the first half of 2024 indicates significant growth in the city. Ajman is gradually establishing itself as a formidable contender in the UAE real estate sector with its strategic locations, government backing, and ongoing infrastructure development.
For investors looking to rent properties in Ajman, seeking new opportunities or residents in search of affordable yet comfortable living spaces, the burgeoning rental market in Ajman merits thorough exploration. The emirate’s expansion raises intriguing questions about how it will carve out its identity in the competitive landscape of the UAE real estate market.
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