Ajman rents expected to rise 5-6% this year

Families renting apartments in Ajman can heave a sigh of relief this year because rentals will rise only at a reasonable 5-6 per cent in 2014.

However, the relief is limited as rents are already at a high having soared by about 40 per cent last year.

That, of course, was good news for apartment owners, who saw their incomes rise substantially in 2013.

“In 2014, it is expected that rentals may increase by at least 5-6 per cent because of less availability of flats compared to requirements,” said Saurabh Joshi of ajmanproperties.ae, a division of Al Farooq Real Estate & Investments.

“So, flat owners are taking advantage of getting as much rent as they can. Secondly, real estate companies are also playing a major role in raising rents and giving profitable income to the investors.”

The main impact of the hike in rents in Ajman last year was on singles as rents of studios jumped by more than 55 per cent on average to around Dh14,000 a year.

Families and those renting one- to three-bedroom apartments were faced with a smaller pay-out on rents which saw, on average, a rise of 36 per cent in 2013.

Average one-bedroom rent is around Dh21,000, a two-bedroom at Dh27,000 and a three-bedroom at Dh33,000.

Ajman was also a beneficiary of the UAE-wide euphoria created by the World Expo 2020 win and the general economic upswing across the country - and its rentals rose.

Also higher rents in Dubai, resulting in some people moving to lower rent areas in Sharjah and Ajman, have also build demand.

Joshi added that rentals, however, vary in different areas.

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