Join us in discussions and sharing pictures about projects of Ajman by creating an account just now!

Rental Rates in Ajman

I read this old (End of 2006) article somewhere and just wanted to know if anybody can inform us about the current status of the rents and renal market in Ajman.

Here is the article:

Lesser rents quoted for the high tower buildings in Ajman
Tuesday, December 26, 2006
Many new high tower buildings have come up over the past one year in Ajman, and the real estate agents in the place are facing a tough time, trying to draw tenants to the buildings.
Read more

djamel05's picture

Gulf News comparing rents in UAE Emirates, published last week

House hunters weigh rent and time taken to reach office
By Robert Ditcham, Staff Reporter
Published: August 23, 2007, 01:01

Dubai: Faced with the strenuous decision of where in the UAE to call home, most newcomers to the country factor in the rent they can afford and their travel distance to work.

It seems that, for the moment at least, the distances involved in commuting from Dubai to the northern emirates of Ras Al Khaimah (RAK), Fujairah and Umm Al Quwain (UAQ) are mostly too lengthy for people's liking.

Real estate brokers say the main alternatives to Dubai are still Ajman, Sharjah and Abu Dhabi, where residents can enjoy lower rents and still be within touching distance of Dubai's job scene and lifestyle options.

According to second quarter 2007 statistics by UAE-based property services company Asteco, rents for a one-bedroom apartment in Ajman are around the Dh22,000 mark. In RAK, Fujairah and UAQ a similarly sized apartment will set you back around Dh25,000.

Meanwhile, in Dubai, a one-bedroom apartment in Karama and Bur Dubai averages approximately Dh75,000, and in Dubai Marina will cost Dh135,000.

This price difference has put Dubai out of contention for many mid-income families, say property analysts.

"We are seeing a very strong trend of people moving out of Dubai, especially young, middle-income families, because rents are not affordable for them and schooling is cheaper elsewhere," said Peter Penhall, CEO of property portal Gowealthy.com.

"Ajman has been the most viable alternative because of its short distance to Dubai."

Roger Wilkinson, managing partner of Northern Emirates Property, a Sharjah-based property leasing and management company, described the residential real estate market in Fujairah and UAQ as "low key" compared to Ajman.

In terms of future rents, Penhall said Dubai will always command a premium because of the advanced state of its real estate sector, its wide array of lifestyle options and the quality of its projects.

However, he said despite rents being substantially lower in the northern emirates, the gap in the quality of apartments is moderate.

COSTS
Look carefully, you are saving a lot

Based on the assumption that petrol costs are Dh0.14 per km and the distance to Fujairah is 120km (round trip 240km).

Approximate petrol cost of daily round trip commute from Dubai to Fujairah: Dh34

Approximate annual petrol cost of round trip from Dubai to Fujairah: Dh12,380 (assuming that travel on weekends for Dubai-based activities)

Average annual rent of one-bedroom apartment in Karama and Bur Dubai (Dubai): Dh75,000

Average annual rent of one-bedroom apartment in Fujairah: Dh26,000

Overall saving for resident who has moved to Fujairah, but commutes daily to Dubai: Dh36,620

Smitty's picture

This is like comparing apples to oranges

Toph3333 - I don't think we can compare rents "in Ajman" to the rents we will realize from the Emirates City. How long is the commute from any of the mentioned developments into Dubai? Will anyone working at the Dubai Land, or any of the other developments between the E311 and E611 want to live in any of the mentioned developments? I don't think so.

Like any real estate purchase, location is one of the prime factors in the decision process and the location of the Emirates City will set it apart from any rental unit in the core of Ajman City. We have a location like none other.

I agree with

I agree with Toph3333.......Emirates City will take advantage of its location which is not comparable to the City of Ajman....But all in all what should we expect of rental market by the end of 2009 when most of the developers hand over the apartments to owners?

Good points

I also agree that Emirates City is totally 'separate' , due to its location commuting-wise.
IF/When the road network will be upgraded and commuting to Dubai becomes less of a hassle, then the properties by Emirates Road will take advantage of this - but also, as we all know. There are so many towers coming up in the next few years, that there will also be a lot of apartments on offer.

Plus, the new regulations in Dubai with landlords required to get a permission ( with a fee ) to be able to rent their property out. If this regulation does not cover Ajman, I can see lot of people trying to get to the 'ladder' in there.

At the moment, all we can do is speculate - that is if we are about to rent out (which I am not planning).

ajman bound