Sharjah real estate prices stabilise
Sharjah, December 20, 2011
The real estate market in Sharjah has started showing signs of maturity and stability thanks to a gradual flow of supply to the market and demand from cost-effective consumers, according to Cluttons.
The property expert in latest outlook said the real estate sector in Sharjah was encouraging and progressive compared to some of the other emirates.
With the rate of supply onto the market showing signs of being more gradual, rents have somewhat stabilised in recent months as price conscious consumers still prefer Sharjah over Dubai, said Cluttons in its report.
Averagely one and two-bedroom flats now rent for Dh25,000 ($6,806) and Dh35,000 ($9528) respectively in the emirate. Such rents have remained unchanged for the best part of the past six months, it added.
Cluttons said it expected to see a rise in demand over the course of next year in areas such as Al Majaz, Qassimiya, Al Khan and Al Nahda where newer more modern towers are being developed.
These towers offer communal facilities and central air conditioning, which tenants now demand, said the real estate expert, which has enjoyed a dedicated Middle Eastern presence since 1976.
With tenant movement towards such newer properties, areas like Rolla, Abu Tine and Al Nabba’a will struggle to maintiain high occupancy levels, the expert said.
In its review, Cluttons pointed out that the future of Sharjah’s real estate sector, to a certain extent, was somewhat linked to what happens in the Dubai market.
'Any further price drops over the next year in Dubai will inevitably have a knock on effect in Sharjah due the strong relationship between the two markets.'
'But it is unlikely that occupancy levels will be affected as price conscious consumers still prefer Sharjah over Dubai and that the growth of the business sector within the emirate is generating more locally employed residents,' the report added.-TradeArabia News Service