Leading property market experts claim that Ajman, Sharjah, and Ras Al Khaimah have become real estate hotspots with excellent investment opportunities.
Dubizzle’s annual property market reports, which are based on primary data collected from site visits and user behavior throughout 2023, demonstrate that while all three emirates are experiencing a real estate boom, Ajman stands out with record growth in sales and rentals, while Sharjah and RAK become popular destinations for property purchases in the United Arab Emirates.
The reports that have been made available for each emirate demonstrate a remarkable upward trend in the sales and rental sectors in each of the three emirates, along with high rates of return on investment. These developments present profitable investment opportunities and a positive picture for both prospective homeowners and investors.
Leading property management firm Asteco predicts that the stable-positive trajectory seen in 2023 will continue, with the Northern Emirates market showing notable signs of growth and recovery throughout the year, as evidenced by a steady upward trend in both sales prices and rental rates. According to Asteco, the Northern Emirates real estate market is well-positioned for long-term growth in 2024 due to the foundation built in 2023.
Haider Khan, CEO of dubizzle, said the 2023 Annual Property Market Reports for Ajman, Sharjah, and Ras Al Khaimah showcase their emerging status as rising stars in the UAE property market. “We’ve noticed consistent increases in nearly all villa and apartment categories, bolstered by the availability of modern amenities at competitive price points and timely completion of off-plan projects and other developments. Listings advertised in Sharjah and the Northern Emirates attracted over 25 million page views in 2023, showing their appeal with property seekers in the UAE. With demand for housing and investment options rising across the UAE, these emirates have become prime opportunities for those wanting more competitive options with similar amenities and benefits,” said Khan.
According to dubizzle’s dedicated report, the Ajman property market saw a notable upsurge in 2023. This was due to the “quiet emirate’s” growing appeal as a prime real estate destination, which is being driven by its ongoing infrastructure developments, urban planning, and a variety of properties with desirable amenities.
Due to growing interest from investors and homebuyers, Ajman’s real estate saw some of the most notable increases in rents, per-square-foot prices, and ROI figures.
“Ajman Downtown leads the way as a prime apartment buying destination with a remarkable Return on Investment (ROI) of 9.44 percent, a clear indicator of its growing popularity and value in the property market. Al Yasmeen emerges as the most sought-after area for villa purchases with 6.15 percent, with Al Zorah providing an impressive ROI of 6.99 percent,” the report said.
With annual apartment rents ranging from Dh27,000 to Dh47,000, the rental market has demonstrated a healthy uptrend. With an average annual rent of Dh27,000, Al Nuaimiya is the market leader for rental apartments. With an average sales price of Dh371,000, it is also a top location for apartment purchases.
All prices in Sharjah have increased, with apartments typically costing between Dh601,000 and Dh1.01 million to buy, and between Dh21,000 and Dh45,000 per year to rent.
With an average asking price of Dh948,000 and a return on investment (ROI) of 3.51%, Al Khan is the most sought-after neighborhood for apartment purchases. Al Majaz and Muwaileh also became well-liked options with good returns on investment. With a 6.24 percent ROI, Al Majaz had the highest ROI for apartments, and Al Sabkha had the highest ROI for villas, at 6.23 percent. The cost of a three-bedroom apartment in Muwaileh, however, increased by an astounding 40.48 percent.
The best places to rent apartments were Al Nahda (which also saw a rent increase of 15.38%), Muwaileh, Al Qasimia, Al Majaz, and Al Taawun. Al Nahda was the most popular because of its prime location and affordable rents.
RAK real estate market witnessed another year of impressive growth in 2023, while also displaying complex up-and-down trends. “Completion of off-plan projects and developments, coupled with the availability of modern amenities, has sustained RAK’s appeal in the eyes of investors, buyers, and tenants. The preferred areas were Al Hamra Village, Mina Al Arab, and Al Marjan Island as the top choices for buying and renting properties,” said the report.
The average annual rent for apartments was between Dh22,000 and Dh42,000. Yasmin Village provided the best return on investment (ROI) of 11.71 percent, while Al Marjan Island recorded the highest apartment sales price of Dh1.57 million.
