UAE: Rents in Ajman nearly double as more residents move in; rates now start at Dh18,000

Mohammed Shuaib is an engineer who works for a telecom company in Ajman and resides in Al Nahda, Sharjah but finds himself grappling with a sharp surge in rental prices across the emirate.

The city of Ajman has seen rents nearly double since the pandemic, according to real estate agents, forcing residents to reconsider their living arrangements.

“I was living in Ajman earlier, paying about Dh11,000 annually for a studio apartment in Al Rashidiya until 2021,” said Shuaib. During the pandemic, he sent his family back to Pakistan, hoping to bring them back later. Now, as he plans for their return, the situation has become more challenging than anticipated.

“I expected rents to rise, but not to this extent. Real estate agents have informed me that a studio apartment now starts at Dh18,000, while a one-bedroom apartment begins at Dh25,000, depending on the neighbourhood. A bedroom, hall, and kitchen, which used to start at Dh16,000 now cost much more,” Shuaib said.

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Shuaib is now considering multiple options because of the hike in housing rentals. “My office is in Ajman, and I work mostly from home. However, there’s a possibility that my presence will be required in the office due to new projects, which means I need to find a place closer to work,” he said. While he had hoped to rent a one-bedroom apartment for his family, the high rental costs are now pushing him to rent a studio instead.

Ajman, which used to be an affordable alternative for residents who commuted to Dubai, has witnessed a surge in rental prices.

Rental surge

“Rents in many areas of Ajman have increased significantly,” said Sikandar Azam, owner of Lemas Real Estate. “Studio apartments that used to be rented starting at Dh13,000 before 2021 now start at Dh22,000 in a few prime neighbourhoods. Rents for one-bedroom apartments, which were once between Dh18,000 and Dh22,000, now begin at Dh35,000.”

“Rents for a 2 BHK apartment in new buildings and prime locations now start at Dh40,000, a significant increase from previous years, which used to be around Dh26,000,” said Sikandar Azam.

The most in-demand neighbourhoods, according to Azam, are Rashidiya 3 and the Corniche area, where demand continues to rise.

Factors driving up the rents

Several factors are contributing to this rental boom in Ajman. Mohammed Mukhtar, the owner of Marhaba Real Estate, pointed to rising rents in Dubai and Sharjah as a major driver. “As rents in Dubai and Sharjah increase, many residents are moving to Ajman, which has resulted in increased demand,” said Mukhtar.

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