Sharjah 'costliest, UAQ most affordable in N.Emirates'
Sharjah, October 20, 2009
Sharjah is the most expensive place to live in the Northern Emirates, while Umm Al Quwain offers the most affordable annual rental rates in the region, according to a report by Asteco, a leading property services company in the UAE.
The 'Asteco Northern Emirates Q3 2009' report said the apartment rental rates in the region continued to fall in the third quarter of 2009 but at a slower rate than before.
“The average decline in apartment rental rates has slowed considerably to 4 per cent compared to 12 per cent in the second quarter and 21 per cent in quarter one of 2009,” said the report.
Umm Al Quwain emerged out as the most affordable emirate in the area with average annual rental rates at Dh26,625 ($7248), while Ajman recorded the largest decline in rents from Dh35,463 to Dh33,500 per annum, the report added.
Asteco, which carries out comprehensive property market analysis across the UAE, also found that Fujairah recorded the smallest decline of two per cent to an average of Dh29,625 per annum, making it the second most affordable place for apartments.
“However, there has been limited activity in the market due to the summer holidays coinciding with Ramadan, both traditionally quiet periods.”
According to Asteco report, Sharjah continued to be the most expensive emirate in which to live, but the office rental rates in the emirate were falling steeply with offices having basic facilities available for Dh45 per sq ft.
In the second quarter, Umm Al Quwain, Fujairah and Ras Al Khaimah reported decreases of nine, eight and eleven per cent respectively. In the third quarter, declines were more conservative with records showing four, two and four per cent respectively.
“Since the fourth quarter last year, when the economic downturn became apparent in the Middle East, average rental rates across the Northern Emirates fell by nearly 34 per cent from Dh48,450,” the report said.
“It should be noted that such a substantial decrease is reflective of the sharp increases which were experienced prior to the financial crisis. For example, apartment rental rates in the Northern Emirates had increased by 22 per cent during the first three quarters of 2008,” it added.-TradeArabia News Service