Latest news with #Asteco
Time of India
4 days ago
- Business
- Time of India
Rising rents in Dubai push expats to Ajman's relatively cheaper homes
Ajman recorded a 50% surge in lease contracts in 2024 as rising rents in Dubai and Sharjah pushed many expatriates to seek affordable housing alternatives in the northern emirate/Image: Shutterstock TL;DR: Driven by soaring rents in Dubai and Sharjah, Ajman experienced a 50% increase in lease contracts and AED 4.93 billion in rental transactions during 2024 making it an attractive budget alternative. Studios in Ajman now start at AED 22,000 annually, while one-bedrooms range from AED 25,000–34,000 as compared with AED 30,000+ in nearby emirates. Many rent-saving expats accept longer commutes (60–120 minutes daily), striking a balance between affordability, emerging infrastructure, and community lifestyle. As the UAE grapples with record rental inflation, a growing number of budget-conscious expatriates are turning to Ajman, once overlooked, now resurging as a residential lifeline. In 2024, Ajman recorded a swift 50% surge in lease contracts, handling nearly AED 4.93 billion in rental deals which is a clear sign of shifting demographics. With studio prices rising to AED 22,000 (USD 5,991) and one-bedroom units fetching AED 25,000–34,000 (USD 6,807-USD 9,258), families and young professionals are making the tradeoffs: longer commutes for lower living costs, with many praising Ajman's affordability, modern amenities, and growing investment in infrastructure. But can this northern emirate sustain the influx without stretching resources and what will commuting do to daily lives? A Budget Anchor in a Rising-Rent Sea Ajman municipality reports that Ajman's lease contracts jumped 50% in 2024, up from AED 3.28 billion (USD 893 million) in 2022 to AED 4.93 billion (USD 1.342 billion) last year. That stems from sharp rental appreciation across Dubai and Sharjah where smaller flats saw 20%–30% rent hikes, pushing expats to Ajman. Bayut and Asteco data further confirm that studios start at AED 22K (up from AED 11K), with one-bedrooms averaging AED 25K–34K. These savings serve as powerful lures for budget-minded renters. Infrastructure & Community Life on the Rise Ajman Municipality rolled out new online systems for inhabitant services, streamlining rental registrations including over 100,000 residential contracts in 2024. Investors are building modern apartments, malls, restaurants, and parks drawing remote workers and families searching for quality on a budget. Locals note Ajman offers a community feel with amenities that match its urban neighbours plus a quiet that Dubai can't offer. Communities around DIFC and Sharjah report daily one-way trips from Ajman lasting 60–120 minutes especially during rush hour. Many commuting expats describe these longer hours as manageable for a higher quality living environment but warn against unpredictable traffic delays. Demand Pressures & Cooling Rents Ahead Notably, northern emirates like Ajman, Sharjah, and Ras Al Khaimah saw Q4 2024 rental growth of 4%–8% before levelling off around 3%. Sharjah alone saw 26% jump in rental agreements mid‑2024, driven by the Dubai spillover. While Ajman may have begun its own price climb, its rates remain significantly lower. Whether Ajman can sustain affordability while handling increased demand and how much longer rents will stay low—remains a critical question. What's Next for Ajman? Ajman's rise seems tied to its geographic advantage, close to major emirates yet relatively affordable. With infrastructure upgrades underway (bridge expansions, new roads), commute conditions may improve. Yet the emirate must continue to balance housing supply with amenities, transportation, and lifestyle offerings, or risk merely replicating Sharjah's inflationary cycle. Ajman's 50% lease contract boom in 2024 signals a northward shift by cost-conscious expats chasing affordability, community, and value. Studio and one-bedroom rents offer AED 8K–18K (USD 2,178-USD 4,912) savings per year, offsetting longer commutes of 60–120 minutes. With strategic infrastructure upgrades, Ajman could become a lasting, affordable alternative to Dubai and Sharjah. Still, rising demand suggests rent levels may soon edge higher. For now, Ajman stands as a deliberate trade-off: cheaper living, justifying the commute.
Zawya
26-05-2025
- Business
- Zawya
Aldar Estates strengthens market leadership with strategic realignment of integrated services
Focus on digital innovation, enhanced client experience, and sustainability to create value for clients. Specialised businesses to provide bespoke real estate solutions. Building on rapid growth and strategic acquisitions to shape the future of real estate. Abu Dhabi – Aldar Estates, the region's largest integrated real estate services provider, today announced a strategic realignment of its key real estate brands to deliver insight-driven and fully integrated solutions across the entire real estate lifecycle. This proactive move builds upon Aldar Estates' market leadership and enhances its ability to accelerate growth, drive client success, maximise real estate potential, while enriching communities. Driven by a clear vision to lead the future of real estate and streamline operations to set a new benchmark for service excellence and innovation, Aldar Estates has realigned its key real estate brands, delivered through specialised businesses: Asteco, Colliers, Khidmah, Inspire Home, Pactive, Basatin, and Spark. This realignment builds upon Aldar Estates' rapid growth and strategic acquisitions to create a truly integrated platform. 'Our streamlined structure strengthens our ability to deliver a more seamless and consistent experience for our clients and partners,' said Khaled Al Rajhi, CEO of Aldar Estates. 'By bringing together specialised capabilities under one integrated platform, we're enhancing operational efficiency, fostering deeper collaboration, and elevating the overall quality of our service delivery. This realignment also positions us to respond more dynamically to market needs, drive innovation across the value chain, and unlock new growth opportunities across the full real estate industry.' The Aldar Estates businesses include: Asteco: A multi-award-winning leader in MENA real estate services, empowering clients with precision and insight through property management, owners' association management, community management, and integrated asset services. A multi-award-winning leader in MENA real estate services, empowering clients with precision and insight through property management, owners' association management, community management, and integrated asset services. Colliers: Global experts providing strategic real estate solutions, including valuation & advisory, property management, transactions, and brokerage. Global experts providing strategic real estate solutions, including valuation & advisory, property management, transactions, and brokerage. Khidmah: A leading provider of facilities management solutions, delivering reliable, cost-effective, and sustainable services across diverse industries, including maintenance, landscaping, and energy management. A leading provider of facilities management solutions, delivering reliable, cost-effective, and sustainable services across diverse industries, including maintenance, landscaping, and energy management. Inspire Home: Specialising in customised, in-unit solutions for home maintenance, prioritising convenience, safety, and efficiency to enhance the value and comfort of homes. Specialising in customised, in-unit solutions for home maintenance, prioritising convenience, safety, and efficiency to enhance the value and comfort of homes. Spark: Providing comprehensive security solutions, including security guarding, security audits, and security equipment installations. Providing comprehensive security solutions, including security guarding, security audits, and security equipment installations. Pactive Sustainable Solutions: Delivering bespoke energy and decarbonisation solutions to drive efficiency and sustainability, empowering clients to achieve their Net Zero goals through expert guidance and innovative technologies. Delivering bespoke energy and decarbonisation solutions to drive efficiency and sustainability, empowering clients to achieve their Net Zero goals through expert guidance and innovative technologies. Basatin: Designing and maintaining sustainable, high-impact landscapes that enhance spaces and communities, offering personalised and environmentally friendly landscaping solutions from design and installation to ongoing maintenance. Aldar Estates manages a diverse portfolio spanning a wide range of asset classes and service offerings, including over 155,000 residential units, prime retail and commercial spaces with a Gross Leasable Area exceeding 2 million sqm. The company oversees a portfolio of contracts with a value exceeding AED 3 billion. Aldar Estates transforms real estate into opportunity. As the region's largest integrated real estate services provider, it empowers clients to realise their ambitions by maximising real estate potential, driving growth, and enriching environments. In 2023, Aldar Estates merged with Eltizam and acquired FAB Properties, rapidly establishing itself as the region's leading integrated real estate services provider. With fully integrated solutions, deep expertise, and an unwavering commitment to innovation and execution, the company brings real estate visions to life.
Al Etihad
26-05-2025
- Business
- Al Etihad
Abu Dhabi apartment rents saw 10% YoY rise in Q1 2025: Asteco report
26 May 2025 08:15 A. SREENIVASA REDDY (ABU DHABI)Abu Dhabi's real estate market sustained its upward momentum in the first quarter of 2025, with average apartment rents climbing 10% year-on-year (YoY) and 4% quarter-on-quarter (QoQ), according to the latest market report from real estate consultancy report noted particularly robust growth in the high-end rental segment, where rates increased between 8% and 12%. The mid-tier market also recorded solid gains, with rents rising between 5% and 8%. 'This widespread positive performance, characterised by increasing rents and high occupancy, underscores the fundamental strength and consistency of demand within Abu Dhabi's residential sector,' Asteco said in the the rise in rentals, some low-end apartments remain relatively affordable on Abu Dhabi Island. In areas like Al Khalidiyah and Al Bateen, studio apartments are available for Dh25,000 to Dh35,000 annually, while one-bedroom units range from Dh28,000 to Dh45, Central Abu Dhabi and the Corniche, studios are priced between Dh30,000 and Dh35,000 per year, and one-bedroom apartments can be rented for Dh40,000 to Dh50,000 the healthy rental gains, supply continues to come online at a steady pace. In Q1 2025 alone, approximately 1,200 new residential units were delivered across developments including Jubail Island, Bloom Living – Cordoba Phase 1, Al Jurf Gardens in Ghantoot, Al Raha Beach and Rawdhat Abu Dhabi. The total number of new residential handovers for 2025 is expected to reach 5,500 units, concentrated in key investment zones such as Yas Island, Masdar City, Saadiyat Island and Al Reem to Asteco data sheet, 700 new apartment units and 500 villa units were completed in Abu Dhabi during the first quarter of 2025. This follows the completion of 2,850 apartments and 2,750 villas in 2024. By the end of 2025, total completions are projected to reach 4,000 apartments and 1,500 villas, reflecting a continued expansion in residential supply across the office sector is also gearing up for fresh supply, with the Quartz Tower on Yas Island set to be delivered in Q2, and other major projects like Shams Tower, The Link, and City Square in the pipeline for late 2025 into terms of sales, the market saw 8,700 residential transactions between March 2024 and March 2025. These included 4,100 off-plan deals and 4,600 sales of completed units, which comprised 3,250 apartments and 1,350 villas and townhouses. Notably, transactions for completed properties grew by 6% QoQ and surged 42% YoY reflecting strong demand from both investors and prices also showed a healthy upward trajectory. Apartment prices rose 4% on QoQ and 7% YoY, with high-demand areas seeing annual gains of over 15%. Villa prices increased by 4% QoQ and 8% YoY, with premium locations such as Saadiyat Island registering annual gains exceeding 15%.Asteco observed that 'well-located villas within prime communities continue to outperform the market average', underscoring the premium that buyers place on quality and launches performed strongly, with high absorption rates within weeks of release. 'This reflects sustained buyer confidence in the long-term value and appeal of new developments,' the report noted. Going forward, Asteco said that the Abu Dhabi real estate market remains 'well positioned for continued positive performance in the near to medium term'. Although new supply may moderate the pace of growth in rentals and values, overall market momentum is expected to remain intact, with further upside potential for both capital and rental values.
Khaleej Times
25-05-2025
- Business
- Khaleej Times
Abu Dhabi rents surge up to 12%: What is driving soaring rental prices in 2025?
Abu Dhabi's residential market has rapidly absorbed new supply over the past 18 months, driven by exceptionally high occupancy and surging demand, pushing rents up by as much as 12 per cent. Around 1,200 residential units, including 700 apartments and 500 villas, were delivered during Q1 2025 in Jubail Island, Bloom Living, and Al Raha Beach. Yet, occupancy levels remain robust, exceeding 95 per cent in many investment zones, according to Asteco. The development pipeline remains active, projecting nearly 5,500 further residential handovers by year-end, concentrated in key areas such as Yas Island, Masdar City, Saadiyat Island and Al Reem Island. A sharp rise in population, reaching 3.789 million as of September 2023, has significantly boosted demand from both tenants and buyers. "High occupancy rates were maintained across all Investment Zones, effectively absorbing the steady delivery of new supply over the past 18 months. Exemplifying this trend, newly constructed developments in areas such as Al Raha Beach report occupancy levels surpassing 95 per cent and achieving strong rental rates,' said the real estate consultancy. 'This widespread positive performance, characterised by increasing rents and high occupancy, underscores the fundamental strength and consistency of demand within Abu Dhabi's residential sector throughout the last three years,' it said. In the first quarter of 2025, average apartment rental rates increased by 4 per cent quarter-on-quarter and showed a significant 10 per cent rise year-on-year. 'Growth was particularly strong in the high-end segment, which experienced average rental increases between 8 per cent and 12 per cent. The mid-tier market also saw notable growth, with rents increasing between 5 per cent and 8 per cent, on average,' Asteco added. In the villa market, the luxury segment continued to lead rental growth, especially in prime locations such as Saadiyat and Yas Islands. Rental rates in some communities surged by as much as 15 per cent compared to last year. High-end villa communities also recorded significant gains, with average rental rates rising between 4 per cent and 7 per cent. Haider Ali Khan, CEO of Bayut, said Abu Dhabi's real estate sector in 2025 continues to build on last year's strong momentum, remaining an attractive destination for global investors. 'The influx of capital from sovereign wealth funds and the growing entrepreneurial landscape drive renewed interest in the emirate. With over 30 new projects launched, Dh7.8 billion in foreign investment recorded in 2024, and an increased focus on transactions, Abu Dhabi is establishing itself as a smart, future-ready hub for property investment,' he said. Recently, developer confidence remained evident throughout the first quarter, reflected in several significant residential projects' launches and/or announcements. With many developments encompassing residential and mixed-use components currently in the planning and early development phases, additional new project announcements are anticipated throughout 2025, said property brokerage firm Asteco.
Khaleej Times
12-03-2025
- Business
- Khaleej Times
Dubai: Rents increases slow down as more inventory comes online
Rent increases have started to slow down in Dubai due to new inventory, giving tenants more options, says real estate industry executives. 'We're seeing increased rental inventory online, reinforcing the trend of rent stabilisation in some areas in 2025. Tenants in these sectors now have more options and are increasingly price-sensitive, while landlords who price competitively secure tenants more quickly,' said Rupert Simmonds, director of leasing at Betterhomes. Since rents have surged in recent years, Simmonds believes that 'minor fluctuations are part of a healthy market cycle.' The drop in rents follows Dubai recorded its first monthly price decline in over two years in January 2025, signalling a long-anticipated shift toward equilibrium. Stay up to date with the latest news. Follow KT on WhatsApp Channels. Property Monitor data revealed average prices falling by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone. According to real estate consultancy and brokerage Asteco, the delivery of new supplies in 2024 was lower than anticipated, but projections for 2025 indicate a significant increase in inventory. 'Assuming the majority of this projected supply enters the market, a moderation, or even a reversal, of rental growth could be observed in specific communities and/or projects. Affordability factors are expected to fuel continued migration to the Northern Emirates in 2025, a trend that gathered pace in the second half of 2024,' it said. Asteco projected that 63,900 apartments and villas will be delivered this year, compared to 33,625 in 2024. Cavendish Maxwell, a real estate consultancy, earlier forecasted that 243,000 new units are in the pipeline for delivery by the end of 2027, with apartments accounting for 80 per cent of the future inventory. This will further ease pressure on prices and rentals in Dubai. This will stabilise prices and rents and ease pressure on tenants. Most of the future supply will come in Jumeirah Village Circle, where almost 25,000 units are set to be delivered between now and 2027, followed by Business Bay (16,000), Azizi Venice (13,500), Damac Lagoons (11,100) and Arjan (9,000). Betterhomes data showed that the strongest rental growth was seen in apartments at Al Khail Heights, where rents increased by 6.6 per cent to an average of Dh66,900. Townhouses in Palm Jumeirah followed closely, with a 6.5 per cent rise to Dh127,300.
