Highest increase in residential rent recorded in Ajman
Ajman witnessed an average 70 per cent overall increase in rents for one, two and three-bedroom apartments over the last 12 months, recording the highest residential rent increase in the UAE.
According to annual research by Dubai-based property services company Asteco, the average increase in rents for two and three-bedroom apartments in Ajman was 69 per cent and 76 per cent respectively. At the end of 2005’s third quarter, residential rates in Ajman were approximately AED 22,000 for a two-bedroom and AED 29,000 for a three-bedroom apartment of similar quality.
Amongst one, two and three-bedroom apartments, the maximum annual rental increase and demand was seen for one-bedrooms in the UAE. Sharjah witnessed a similar trend with an annual increase of 30 per cent from AED 21,500 in 2004 to AED 28,000 in 2005. Ajman recorded the highest percentage increase from approximately AED 11,000 last year to AED 18,000 this year– a 64 per cent annual increase.
“Returns on villas and apartments in the UAE are still higher than in many other international destinations. The influx of expatriates has led to increasing demand, which in turn has led to rent increases across the emirates,” says John Allen, Director Consultation, Research and Valuations, Asteco.
When it comes to business, UAE’s capital city reigns supreme. Average office space rents in Abu Dhabi have increased by approximately 51 percent in the third quarter of 2005, compared to the same period last year. Asteco analysts attribute this growth to the UAE’s surging economy, the announcement of new liberal property laws in Abu Dhabi and the increasing number of companies setting up operations in the UAE.
Next in line is Sharjah, with an average increase of approximately 40 per cent in office space rents. Areas recording the highest increases include the much sought after Corniche and Al Taawun areas. Dubai and Ajman recorded modest increases of approximately 29 per cent and 28 per cent in commercial rents when compared to Abu Dhabi and Sharjah.
Founded in Dubai in 1985, Asteco is the UAE’s largest property services company. Its services include retail, commercial and residential sales and leasing; strategic consultancy; property management, property marketing; feasibility studies and valuations; and research and investment.