Business | General

Sharjah rents up 16 per cent as tenants leave Dubai

Property market sees increased demand as more tenants swap emirates

  • Sarah Algethami, Staff Reporter
  • Published: 15:44 July 28, 2013
  • Gulf News

Dubai: After Dubai, it’s Sharjah’s turn to face residential rent price hike. The emirate has seen rentals go up 16 per cent on an average in the last 12 months, as revealed on Sunday in a report by Asteco Property Management.

“This rise is a direct result of the hiked rents across Dubai, which have sparked a reverse relocation trend, with budget-sensitive tenants seeking out more affordable accommodation in the next emirate,” John Stevens, Managing Director of Asteco, said in the report.

Mat Green, head of research in the UAE at CBRE Middle East, echoed Stevens’ view.

“What we are seeing now is occupiers looking at alternative locations, especially in the last 18 months. That’s having a knock-on effect on other markets, such as Sharjah,” he told Gulf News in a phone interview.

Rent rates for apartments in Sharjah’s popular commuter areas have increased between 16 per cent and 27 per cent since the second quarter of 2012, the report highlighted.

Al Nahda apartments attracted the most demand, with annual rents climbing 27 per cent in the second quarter of 2013 compared to the same period last year. A two-bedroom unit costs Dh40,000 as per the report.

Next in demand is Al Majaz, which registered a 24 per cent rise in rents, followed by Al Wahda, with a 22 per cent increase.

Also, villas saw rent rates jump 12 per cent for those located in Al Khan, Sharqan and Al Quz. According to the report, the rise is due to insufficient good quality stock and strong growth in the interest of tenants.

However, the report noted a discrepancy in rental increases in certain locations. For instance, Al Khan registered a 33 per cent rise year-on-year, while Sharqan and Al Quz recorded a two per cent increase for the corresponding period.

 

Office rentals

Meanwhile, the office rental market saw an average one per cent decrease year-on-year in rent rates as per Asteco estimates.

The consultancy says it’s a result of little interest in the office space from new companies in the northern emirates. But popular areas such as the Corniche, Mina Road and Al Wahda recorded increases of nine per cent, five per cent and four per cent respectively.

Stevens expects the short to mid-term outlook for the Sharjah property market to be positive,

“This sustained demand is being carefully monitored by the government as it looks at future economic stimuli, with infrastructure and construction project initiatives leading the agenda,” he said.

CBRE’s Green, meanwhile, expects rent hikes in Sharjah and other emirates close to Dubai to continue in the next 12 months.

“Over the coming 12 months, other locations that are more affordable will see more demand and that will increase rent rates,” he said.

Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah have recorded a year-on-year jump in rent rates of 10 per cent, eight per cent, two per cent and five per cent, respectively.

Comments (24)

  1. Added 15:27 July 29, 2013

    Real Estate people are just increasing the rent without any reason. There is no boom economically or financially and just produce rumours to hike the rent. Even they are not following the laws correctly that only after 03 years they can increase the rent. And over municipality, no one will pick up the phone ever and there is a phone number in very building,'993' but never picked up.

    JB, sharjah, United Arab Emirates

  2. Added 14:27 July 29, 2013

    These landlords think that expat are coming to UAE not to earn but to pay only their high rents. Dont forget after every dark night there is a bright sunlight. And dont forget Allah (s.w.t) knows everything and he will do the justice to all.

    Tanveer Ali Haidery , The Hague, Netherlands

  3. Added 14:17 July 29, 2013

    I agree, its always and everywhere a question of the demand controlling the market prices. This is valid for every product and worldwide. BUT, what the landlords do to justify the increase? Do they renovate the buildings, do they offer a regular and proper maintenance for A/C units, parking space, fire and safety equipment, a regular window and facade cleaning etc? All these things should be considered for an increase of rents. Unfortunately I noticed, after the rental cheques are submitted, the tenants dont have any strong argument to discuss with the landlors when there is a gap between hight rent and (not) offered building maintenance or missing response on repair requests.

    claudia, Sharjah, United Arab Emirates

  4. Added 14:15 July 29, 2013

    We are a small family - myself, husband and our 2 year old son currently live in International city. The rents have increased to such an extent that our landlord have asked us to vacate the apartment indicating a major maintenance to perform! Why they actually asked us to leave is the question. We are currently paying Aed 29,000 per annum for 1BHK and they are not allowed to increase the rent as per RERA. Even if they want to they will only be able to raise by 5%. The current market rate for 1 BHK in international city is not less than AED 38,000 per annum when we enquired! Thus, only if they vacate us, can they sell at this price! Days and nights were spent looking for a 1 bedroom apartment from Dubai Silicon Oasis to Qusais to Muhaisinah and till Sharjah. The long search resulted in finding few flats which pleased our hearts but not our pockets! Finally we decided to move within international city itself allowing our pockets tear for a AED 42,000 per annum for 1 BHK. A rise of AED 13,000/- within a year, Who are regulating these real estate agents? How can someone throw a family out just to hike the prices? Well, we don't have a choice, do we? The only wish I have is, if our wages too increased like this every year!

    Ariya Joseph, Dubai, United Arab Emirates

  5. Added 13:50 July 29, 2013

    correct Mr. Anonymous due to this rule regarding contracts people are finding cheaper rents in other emirates.

    singh, mumbai, India

  6. Added 13:37 July 29, 2013

    We are not satisfied that rent were increase. I am a low income employee. ultimately I decided to cancelled my family visa of my wife,daughter and son. atleast I can save money on Emirates ID,Visa renewal,Visa medical expenses , school expenses, air tickets,no need double or single bedroom will share with bachelor accommodation.

    shaan, Abu Dhabi, United Arab Emirates

  7. Added 13:26 July 29, 2013

    Put a Metro from Sharjah to Dubai to stop this maddening rent hike in Dubai. Rates in Sharjah are still bearable.

    Papa, Dubai, United Arab Emirates

  8. Added 13:24 July 29, 2013

    Please have some pity on people who earning less. Please.

    Muhammad, Dubai, United Arab Emirates

  9. Added 13:09 July 29, 2013

    It is a universal law, a slow and steady progressive growth will sustain but not otherwise. Regulations to protect the rights of the residents has to be undertaken.

    Sajna Fassul, Dubai, United Arab Emirates

  10. Added 13:07 July 29, 2013

    In this matter the government should do something.

    yousuf zakir, Dubai, Oman

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