Ajman is rising and promising as the rental hotspot in the Northern Emirates as budget-conscious residents, concerned about the intensifying rents in Sharjah and Dubai, relocate to the emirate, according to one realty consultancy.
In the recent report, it was said that the demand for affordable housing maintained to fascinate new arrivals, mainly from Dubai to Sharjah and Ajman in the second quarter.
While Dubai’s leasing market saw an important rise in the second quarter of 2014, with apartment rental rates rising 4% and villas by 5% compared to the first quarter, Sharjah recorded 3% quarter-on-quarter intensification for apartment rentals with year-on-year growth dropping to 31% from 38%.
Ajman is now taking over the mantle as the transfer destination for budget-conscious residents as landlords in Sharjah ask higher than average rental fees, specifically for brand new buildings in popular places like Corniche, Al Wahda and Al Nahda. Nevertheless, this enthusiasm to capitalize on market opportunity is not being matched by transaction volume, confirming that budget issues are still a key driver.
The report said Sharjah in particular has benefited in recent months due to aggressive rental rate increases in neighboring Dubai.
The complete and whole positive market response at the start of 2014 has also seen the reprisal of a number of stalled residential projects and commence of numerous new projects in the Northern Emirates which was anticipated to enhance recent stock in the next few years.