Mohammed Shuaib, an engineer working for a telecom company in Ajman and living in Al Nahda, Sharjah, is facing challenges due to a sharp rise in rental prices across the emirate.
Over the past few years, rents in Ajman have almost doubled, according to local real estate agents, forcing many residents to rethink their housing plans.
Pandemic Impact on Rentals
“I used to live in Ajman, paying around Dh11,000 annually for a studio in Al Rashidiya until 2021,” Shuaib shared. During the pandemic, he sent his family to Pakistan, planning to bring them back later. But the unexpected surge in rents has made this return more difficult.
“Real estate agents now say studio apartments start at Dh18,000, and one-bedroom apartments at Dh25,000, depending on the location. Even a bedroom, hall, and kitchen, which previously cost Dh16,000, are now much more expensive,” he explained.
Housing Challenges for Families
Due to rising costs, Shuaib is exploring new options. “I work mostly from home, but upcoming projects might require me to be in the office. This means I need to find a place closer to work,” he said. His initial plan to rent a one-bedroom apartment has shifted, and he’s now considering a studio for his family.
Ajman, once a budget-friendly option for people commuting to Dubai, has seen significant price hikes in its rental market.
What’s Driving the Rental Surge?
Sikandar Azam, a real estate agent with Lemas Real Estate, shared insights into the steep rise in housing costs.
- Studio apartments: Previously starting at Dh13,000, now start at Dh22,000 in prime areas.
- One-bedroom apartments: Once available for Dh18,000–Dh22,000, now start at Dh35,000.
- Two-bedroom apartments (2 BHK): In newer buildings and top locations, prices have jumped from Dh26,000 to Dh40,000.
Popular areas like Rashidiya 3 and the Corniche are in high demand, further pushing prices up.
Reasons Behind the Boom
Mohammed Mukhtar, owner of Marhaba Real Estate, highlights key factors causing the rental surge:
- Higher rents in Dubai and Sharjah: Many residents are relocating to Ajman for more affordable housing, driving up demand.
- Development in Ras Al Khaimah (RAK): Projects in RAK attract workers who choose Ajman for its central location and commute convenience.
- Improved infrastructure: Ajman’s new bridges and upgraded roads, like the three-lane Ittihad Road, have eased commuting to neighboring emirates.
- Business growth: New cafes, restaurants, and entertainment venues in Ajman have drawn more residents, increasing the demand for housing.
Rent Regulations in Ajman
Ajman’s rent laws make it appealing to many. Rents can only be increased after three years of tenancy, with a maximum hike of 20%. This stability attracts residents, especially those working in Dubai but looking for more affordable housing options.
With Ajman’s development on the rise and demand for housing growing, residents like Shuaib are left navigating the challenges of balancing affordability with convenience.
