Sharjah residential rents up 33pc
Sharjah, February 5, 2014
The residential leasing market in the Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah which witnessed a 33 per cent jump last year, said a report.
Two other big players in the Norther Emirates - Ajman and Ras Al Khaimah (RAK) - too witnessed a steep rise in apartment rental rates, year-on-year, which increased by 23 per cent and 18 per cent respectively, according to a report from top real estate expert Asteco.
In Sharjah, the apartment rental rates rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda last year, said Asteco in its 'Northern Emirates Q4' report.
Furthermore, rental rates throughout the emirate increased, on average, by 8 per cent in the last quarter alone. Sharjah’s popular Corniche is still one of the most desirable areas; a two-bedroom apartment there now rents for up to Dh70,000 ($19,054) per annum.
“Our research shows that the rental law that was created to protect tenants from steep annual rent increases, is being circumvented by some landlords asking for additional fees for maintenance and extra parking spaces, to compensate for the three-year rent freeze stipulated in the rent law,” said John Stevens, the managing director for Asteco.
Sharjah Holding, he said, is currently developing an integrated mixed-use community known as Al Zahia and will include a range of villas, apartments, and commercial units, which will be a valuable addition to supply.
"On the back of increased property prices in Dubai, it is expected that more Arab expatriates will either choose to occupy or invest in Al Zahia," stated Stevens.
Elsewhere in the Northern Emirates, RAK, Ajman and Fujairah also witnessed fourth quarter growth of 6 per cent, 6 per cent and 5 per cent respectively, said the Asteco in its report.
The annual rent for a two-bedroom apartment in RAK is now up to Dh50,000 per annum, meanwhile the cost of a similar property in either Fujairah or Ajman is now up to Dh45,000 per annum, it stated.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of 1 per cent since the fourth quarter of 2012, and rates unchanged in the final quarter of 2013, it added.-TradeArabia News Service