“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.
Additionally, large-scale development projects in Ras Al Khaimah (RAK) have driven demand in Ajman.“Many residents on RAK projects are choosing to live in Ajman due to its central location, which makes it easy for them to commute to both RAK and their offices in Dubai,” said Mukhtar.
Infrastructure and urban development in Ajman have also made the city more attractive for the residents.“The city's improved infrastructure, including new bridges and smooth three-lane roads along Ittihad Road, has eased traffic and made commuting to neighbouring emirates more convenient,” added Mukhtar.
Ajman's growing business landscape has further contributed to the increase in population and rental demand.“New businesses, from cafes and restaurants to entertainment spots, have opened in Ajman, which has drawn more residents to the area,” said Mukhtar.
According to real estate agents, Ajman's rent regulations also play a role in its growing popularity.“In Ajman, rents can only be increased after three years of occupancy, with a maximum increase of 20 per cent. This makes it an attractive option for those working in Dubai but seeking more affordable housing,” said Azam.
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