Rents have declined in Sharjah this year [representational image].
Published: 22 July 2018 - 9:29 a.m.
Ajman and Sharjah have become more affordable with drops in both sales and rental prices compared to the first six months of 2017, according to a new report by UAE property platform Dubizzle.
The group's Northern Emirates report, which compares rentals and sales prices trends from H1 2017 to H1 2018, indicated an overall "prominent decline in rentals and sales prices in both Sharjah and Ajman across apartments and villas".
Apartments in Al Nahda and Al Khan experienced the biggest drops in Sharjah, decreasing 16% on the first half of last year, followed closely by Al Taawun which saw a 14% drop. Two bedroom apartments in Al Nahda saw the largest decline, falling 20% on H1 last year.
According to the report, the average cost for a two-bed in Al Nahda now stands at $9,800 (AED36,000).
Now more affordable, Al Nahda – along with Muwailih Commercial and Al Taawun – is now the most popular area amongst property seekers for both sale and rent, Dubizzle found.
Ajman, just North of Sharjah, saw a similar decline in both rentals and sales prices, with properties in this emirate dropping even further than Sharjah. Al Jurf and Ajman industrial area saw the largest drop in rental prices in the first half of 2018, with a decline of 18% compared to the first six months of 2017. This was followed by Al Sawan with a 14% decrease and Emirates City, where prices have dropped by 10%.
Sales prices in Emirates City and Al Mushairef saw average decreases of 21% and 19% respectively compared to H1 2017, beaten only by Al Nuaimiya which fell 23% over the same period.
Al Sawan, however, experienced the lowest decline in average sale price, dropping by only 10%.
Speaking on the results, Samer Abdin, dubizzle Property's general manager said: "Across the UAE, properties are becoming more affordable resulting in a decline in cost of living. We are seeing an oversupply of property units in the market right now which has created a more competitive and affordable market.
"Our data highlights that apartment sale prices in Ajman in particular have fallen at a more pronounced rate than rental prices, giving property seekers an excellent opportunity to invest in their own property," he concluded.