Sharjah rents up 7pc as Dubai residents relocate
Sharjah, April 15, 2014
Sharjah’s rent rates have increased seven per cent on average this quarter as Dubai residents look to relocate to more affordable accommodation, said a report.
The Q1 2014 Northern Emirates report from Asteco, a leading real estate services company, pointed out that the rates have increase 38 per cent year-on-year, which those in Fujairah and Umm Al Quwain remained stable, with Ras Al Khaimah and Ajman showing a marginal two and three per cent increase respectively.
John Stevens, managing director, Asteco, said: “Budget-conscious Dubai residents are now relocating to Sharjah in a flight to affordability. A vastly improved road network and public transportation, has also benefited the northern emirate.
The apartments in key residential areas such as Al Nahda, Mina and Al Wahda have seen average rental increases of 10 to 11 per cent in the last three months and Asteco expects rental rates to continue on their upward trend through to the end of the year with no new supply due to come online.
“We are also seeing rental increases for Sharjah’s older apartment buildings, which grew by an average of six per cent quarter-on-quarter, and this reinforces the attractiveness of the emirate to budget-conscious residents,” said Stevens.
The prospective tenants looking for ‘prime’ accommodation in Sharjah can expect to pay anywhere between Dh27,000 ($7,349) and Dh50,000 for a one-bedroom apartment and Dh32,000 up to Dh80,000 for a two-bedroom unit.
The prices are being boosted by a number of government-led tourism and leisure initiatives including development within the retail sector with the expansion of Sharjah City Center and other initiatives in Al Khan and Al Qasba, which will drive increased tourism traffic as well as serve local residents.
“Most importantly, we are seeing a complete upgrade of Sharjah’s transportation infrastructure, making the daily commute to Dubai easier and reducing traffic congestion within the emirate,” noted Stevens.
Sharjah’s commercial sector has also seen leasing rate increases in several popular locations over the last quarter with the Corniche and Al Wuheidah Street recording growth of eight and five per cent respectively despite continued sector stagnation with just two per cent growth overall. - TradeArabia News Service