Apartments and villas in the northern emirates had slower rental rate growths in the first quarter compared to the previous quarter, according to an Asteco report exclusively released to Property Weekly. Commercial property in Sharjah likewise achieved unremarkable results as rental values remained broadly stable, with increases of around 2 per cent on average.
While quarter-on-quarter results were generally flat, the residential rental rate increases were between 20 per cent and 38 per cent higher compared to the same period last year, except in Umm Al Quwain where year-on-year growth was only 2 per cent. The highest year-on-year increases were seen in Sharjah followed by Ras Al Khaimah.
The most expensive apartments in the survey are those in master-planned communities in Ras Al Khaimah such as Al Hamra, Mina Al Arab and Bab Al Bahr. Rental rates of three-bedroom units in these locations reach up to Dh120,000 per year. In comparison, high-end three-bedroom apartments in Sharjah, including those in buildings that are less than five years with good-quality facilities and amenities, are leased for up to Dh95,000.
The rental rates for older apartments in Sharjah increased by 6 per cent and rates for units in newer buildings rose by 7 per cent in the first three months of the year,” the report stated. “In Fujairah and Umm Al Quwain, apartment rental rates remained stable, whereas marginal increases of 2 per cent and 3 per cent were reported in Ras Al Khaimah and Ajman respectively.”
Office rents in Sharjah had a marginal average increase of 2 per cent in the first quarter as rents in most locations remained stable in the past two quarters. Rental values in popular areas, however, performed better with the Corniche and Al Wuheidah Street enjoying quarter-on-quarter increases of 8 per cent and 5 per cent respectively.
