Retail Properties Rents are continuing to fall in Ajman

Given the weaker economic climate, lower levels of consumer confidence, the increasing impact of e-commerce and the impact of the introduction of VAT in 2018, the UAE’s retail sector is continuing to face strong headwinds.
The northern emirates of Ajman known as affordable alternatives for renting of Commercial / Retail properties in the UAE also effected due to this Economic Climate.
Retail rents drop as number of vacant shops rises. As the shutters go down on more and more shops and offices, the commercial property sector is being backed into a corner.
The Research Finds Weakened demand and increased supply are pushing Retail rents in Ajman lower in the first quarter of 2019.
This is a result of more stock entering the Ajman market, making it more competitive. The dip in rents could also be attributed to more affordable stock coming to the market in Dubai, making tenants migrate from neighboring emirates. Landlords are also seen increasingly open to negotiate with tenants and drop rents rather than keep units empty.
Rent free incentives, both to existing and new tenants, are being a more common practice in Ajman, in order to maintain and attract key corporate occupiers within their portfolios landlords have become more flexible, with approaches such as rent-free periods, offering extended car parking facilities, shorter lease terms.
Due to  tougher trading conditions, firms are willing to relocate to secondary locations in order to reduce costs, prime and Grade A office locations still remain most desirable.
Another Factor Contributing in Rise of Retail Rental Drop is the impact of e-commerce on the physical retail sector has been particularly evident over the course of 2018.
 E-commerce firms such as Noon, Souq, Ounass and Nashimi have enacted a range of initiatives, aside from only discounting prices, to improve the range of products offered and also delivery options, particularly same-day and next day delivery.
Rental rates have witnessed double digit declines on an annual basis on average in both Dubai and Ajman. Despite declining rents we are also witnessing occupancy rates fall, particularly in specialty retail and community retail locations.
 As the Ajman Retail  property markets are softening, which presents a buying opportunity for Investor while offers lucrative renting offers for Tenants to relocate or expand their Business.

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