The Emirate of Ajman is just 15 minutes from Dubai. It has half a million inhabitants and a flourishing industry that is less dependent on tourism. Ajman is the smallest of the seven emirates and measures approximately 259 square km, approximately 0.3 per cent of the surface area of the UAE, excluding the islands.
Ajman has some sandy beaches but is mainly characterised by the rugged Hajjar Mountains. Although the city is modern and offers up-to-date services and facilities, it retains its traditional charm. Ajman is located on the coast of the Arabian Gulf, in the northern part of the UAE. It is 16 km long and lies between the emirates of Sharjah and Umm Al Quwain.
Commercial real estate in Ajman
Commercial real estate in Ajman is attractive because you can buy an existing building filled with tenants for relatively lower costs than in Dubai. The government strictly controls every transaction.
His Highness Sheikh Rashid Al Nuaimi, Chairman of Municipality and Planning Dept.-Ajman, issued an administrative resolution to launch the Tasdeeq system of electronic lease contracts. “Tasdeeq” was issued after two princely decrees concerning the ratification and organization of rental agreements and all related matters and to reform the rental disputes committee.
Under the administrative resolution, the first phase of the rental and residential contracts, the Tasdeeq electronic system, was launched through the following procedures in the department’s electronic system.
The resolution of launching “Tasdeeq” will take effect immediately by the concerned department to simplify the procedures on all members of the society in the Emirate of rental contracts ratification where the department continues its policy of smart electronic transformation several years ago and has many special procedures and services electronically provided to Public health & environment, and infrastructure development sectors and others via smart services on department’s smart application. (source: https://www.tasdeeq.ae/en/services.html)
As the building owner, you receive a cheque with the collected rent every three months.
Calculation example commercial real estate Ajman
Suppose you invest in a 15-story shopping and residential tower with 145 units. The purchase price is 16 million euros. The rental income is 1.8 million euros annually, a 12% ROI.
If you deduct the building maintenance and rental management, you keep a 10% ROI. And that is 1,600,000 euros completely tax-free.
As a commercial real estate investor in Ajman, rental income is tax-free. You can do two things with it: invest in another building with tenants and increase your profits further. Or use the money to invest in, for example, a lovely villa on the Cote d’Azur. All income is tax-free, so commercial real estate in Ajman is the best way to get the best net result.
Ajman real estate facts
The real estate market in Ajman has been growing significantly over the past couple of years due to various factors. These include the government’s efforts to develop the area’s infrastructure and affordable property prices. This region offers investors a great opportunity to enter the UAE’s real estate market.
Ajman’s real estate market is considered one of the most affordable in the UAE. Its prices are significantly lower compared to other areas, such as Abu Dhabi and Dubai. This makes it an ideal choice for investors looking to make high returns. Its rental yields are also higher than those in other nearby emirates.
The government of Ajman has been implementing various regulations and policies to promote the development of the area’s real estate market. One of these is the introduction of property laws that allow expatriates to own properties in designated areas. The city’s free zone also helps boost its appeal as an investment destination.
According to a report by Ajman’s Land and Real Estate Regulatory Department, these transactions were distributed as follows: 2,039 transactions for citizens, totalling AED2.98 billion, and 5,139 transactions for foreign investors, totalling AED6.048 billion, reflecting an impressive 88 per cent growth.
Sheikh Abdulaziz bin Humaid Al Nuaimi
Sheikh Abdulaziz bin Humaid Al Nuaimi, Chairman of the Department of Land and Real Estate Regulation in Ajman, highlighted the emirate’s significant achievements across various sectors. He emphasised the real estate sector’s alignment with Ajman’s continuous development and economic progress, attributing this success to the wise vision of H.H. Sheikh Humaid bin Rashid Al Nuaimi, Member of the United Arab Emirates Supreme Council and Ruler of the Emirate of Ajman, and the diligent efforts of H.H. Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of the Emirate of Ajman and Chairman of Ajman Executive Council. He explained that their leadership has positioned Ajman as an attractive destination for real estate investments.
He added that the real estate sector in Ajman has seen remarkable growth in recent years due to the emirate’s provision of facilities and success factors for investors and their projects, its flexible legislative environment that attracts investments, the ease of registration procedures, the speed of transaction completion, and the advanced modern infrastructure of the emirate.
Sheikh Abdulaziz emphasised that the growth achieved by the emirate’s real estate sector reflects investors’ confidence in Ajman as a leading investment destination and strengthens the sector’s robustness. It also reflects the success of the Department of Land and Real Estate Regulation’s strategy aimed at providing an integrated and distinguished business environment for investors of various categories.
Real estate transactions
The department’s report mentioned that the volume of real estate transactions in Ajman during the first half of the year reached 5,449 transactions valued at AED6.139 billion, an increase of 37 per cent compared to last year. Additionally, 1,205 mortgage transactions were recorded with a total value of AED1.797 billion over the past six months.
The report explained that the areas of Al Yasmeen, Al Zahia, and Al Helio 2 had the highest real estate transactions (ownership) during the first half of 2024, while the eastern sector was the most active during the same period, followed by the southern and northern sectors.
The report identified several key reasons for the increase in foreign investment in the emirate, most notably the promotional activities in the emirate, especially the Ajman Real Estate Investment Exhibition, which saw the signing of 336 deals worth AED195.8 million. Other reasons include the emirate’s excellent and central location among the Emirates, its flexible laws and regulations that attract investment, the variety of models offered in the real estate market, the ease of obtaining financing for residential and commercial projects, and the availability of facilities that allow foreigners to purchase and own property up to 100 per cent. (source: https://www.wam.ae/en/article/b482g6s-real-estate-transactions-ajman-reach-aed9-billion)
Ajman free zone
Ajman’s free zone provides various incentives, such as tax exemptions and 100% foreign ownership, making it ideal for businesses and entrepreneurs.
One of the main factors contributing to the growth of the real estate market in the city of Ajman is its infrastructure development. Over the years, the government of the UAE has been investing in various projects, such as the construction of roads and highways. These projects have made travelling between the various emirates easier for residents and visitors. Ajman’s reputation as a residential destination also benefits from the presence of several prominent institutions and schools.
The combination of cultural and economic development and its natural beauty makes Ajman an appealing and unique location within the UAE. Its historical landmarks, vibrant cultural scene, and pristine beaches provide its residents with a high standard of living. Ajman’s real estate market is also attractive to investors due to its low prices and investor-friendly regulations.
The city of Ajman is becoming a prominent player in the UAE’s real estate market. It offers investors a variety of opportunities to secure stable and profitable returns. Are you interested in commercial real estate in Ajman as part of your international portfolio? Living on the Cote d’Azur has an office in Ajman and local partners with Quest Invest Realty. First contact and off-market opportunities via Ab Kuijer info@questinvestrealty.com
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