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Northern Emirates emerge as real estate hotspots offering strong investment opportunities

Ajman shines with record growth in sales and rentals, whilst Sharjah and RAK emerge as hotspots for property purchases in the UAE

Northern Emirates emerge as real estate hotspots offering strong investment opportunities

Dubizzle’s Annual Property Market Report for the Northern Emirates in 2023 shows significant growth in real estate markets in Ajman, Sharjah, and Ras Al Khaimah (RAK). Data from site visits and user behaviour throughout the year indicate an uptrend in sales and rentals, offering a promising outlook for investors and homebuyers.

Ajman

In 2023, the Ajman property market experienced a significant surge, making it an increasingly appealing real estate destination. This growth was driven by ongoing infrastructural developments and urban planning, as well as the availability of properties with desirable amenities. There was a notable increase in rents, per-square-foot prices, and ROI figures, reflecting the rising interest from investors and homebuyers in the “quiet emirate.”

Ajman Downtown leads the way as a prime apartment-buying destination with a remarkable Return on Investment (ROI) of 9.44%, 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%, with Al Zorah providing an impressive ROI of 6.99%.

Lucrative opportunities lay in the localities of Emirates City, Al Sawan and Al Amerah, which stand out as promising investment areas with ROIs of 8.87%, 8.29%, and 8.93% respectively.

In 2023, Al Yasmeen witnessed a significant 10.40% rise in villa prices per square foot, while Al Rawda saw a remarkable 27% increase. Al Zahya and Al Rawda offered competitive prices and returns on investment for villas. Meanwhile, Al Nuaimiya and Ajman Downtown were noted for their apartment sales, with Al Nuaimiya leading in apartment rentals as well.

Villa rents in Al Mowaihat saw a substantial increase of 40.63% for 4-bedroom villas, while Al Zahra experienced a nearly 20% increase, along with Al Yasmeen. On the other hand, apartment rents in Al Nuaimiya surged by over 53% for studio flats, Al Rawda witnessed a 15.38% hike for 2-bedroom apartments, and there were also rises in Al Rashidiya and Al Jurf.

Sharjah

Sharjah, known as the cultural capital of the UAE and close to Dubai, has seen a rise in rental and sales prices for apartments and villas, attracting a significant number of people. The city offers a variety of options to suit different preferences and budgets, with areas like Al Khan, Muwaileh, Al Tai, Al Jazzat, Al Nahda, and Al Qasimia being particularly popular among investors and residents.

Al Khan leads as the most sought-after area for buying apartments, with an ROI of 3.51%. Muwaileh and Al Majaz also emerged as popular choices with attractive ROIs. Al Majaz recorded the highest ROI for apartments at 6.24%, while Al Sabkha topped the list for villas with a 6.23% ROI. Muwaileh’s 3-bedroom apartment prices, meanwhile, saw a staggering rise of 40.48%.

The top areas for apartment rentals were Al Nahda (which also had a 15.38% rent increase), Muwaileh, Al Qasimia, Al Majaz and Al Taawun, with Al Nahda leading due to its ideal location and reasonable rents.

Al Tai, Al Jazzat, Sharjah Sustainable City and Muwaileh emerged as the most preferred neighbourhoods for villa rentals, with Al Tai offering an average annual rent of $29,970 (AED 111,000), and annual rents rising by 18.75% in Al Sabkha. Sharjah Sustainable City broke onto the scene in a big way, with an ROI of 5.06%, and offering spacious residences and modern amenities with a sustainable lifestyle.

Ras Al Khaimah

The real estate market in Ras Al Khaimah (RAK) 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.

In apartments, the average annual rent ranged from $5,940 (AED 22,000) to $11,340 (AED 42,000). Al Marjan Island recorded the highest sales price for apartments at $423,900 (AED 1.57 million), while Yasmin Village offered the highest ROI of 11.71%.

Al Seer apartments had the highest rise in rentals overall, at 16%. Among villas, Al Hamra Village saw the highest shift in average annual rents for villas at 10.34%.

Al Hamra Village is the most popular area for apartment purchases with an ROI of 7.33%. Al Marjan Island and Mina Al Arab also emerged as preferred choices for buyers, with the former recording average villa sales prices of $5,130,000 (AED 19 million) and seeing a whopping 35.33% increase in its 3-bedroom prices.

Al Hamra Village also topped the rental market for both flats and villas, followed by Al Marjan Island and Al Dhait for apartments, and Mina Al Arab seeing interest for both flats and villas. Al Hamra Village stood out once again, this time in the villa sales market, with an average price of $993,600 (AED 3.68 million). Mina Al Arab and Al Marjan Island followed, showcasing the diversity and appeal of the villa market in RAK.