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Sharjah residential rents increase by 2%

Marginal rate adjustment noted in selected areas as residents continue exodus to Dubai where prices are falling

  • By Zaher Bitar, Staff Reporter
  • Published: 00:00 July 18, 2011
  • Gulf News

Dubai: Despite power cuts and petrol shortages, rents in some areas of Sharjah have risen 2 per cent in the last quarter, real estate firm Asteco said.

The firm said the current rent for a studio in the Al Khan and Corniche areas has climbed to Dh20,000 to Dh25,000 a year, and office rents have risen by as much as 5 per cent.

Asteco reported that residents continue to move to Dubai, with many prepared to pay the premium to upgrade their accommodation and move to properties closer to their places of work and schools.

Selective stability

Craig Plumb, head of research at Jones Lang LaSalle Mena, said that the Sharjah market was experiencing "selective stability".

"Some portions of the market are now seeing prices stabilise or even increase marginally, but these sectors are relatively limited and confined to a few select locations.

"The average price and rent across the whole market has continued to decline and is likely to decline further for the rest of 2011."

He added that the Dubai market continues to exert downward pressure on rentals and prices in Sharjah and the northern emirates.

"With high levels of new supply expected in Dubai over the second half of 2011, prices and rentals in most locations in Dubai will fall further during the rest of the year.

"Prices have increased in certain high end [areas] in Dubai in the second quarter, but these increases have been limited to a few select high end projects such as the Palm Jumeirah and Arabian Ranches."

"Those locations which are attracting people from Sharjah and the northern emirates — for example International City, Silicon Oasis and Mirdif — are still experiencing declines in prices.

This will attract more demand back into Dubai as more families can afford to relocate to be closer to workplaces, schools and other facilities."

Plumb added that the levels of commuting into Dubai from the northern emirates will decline as a result of the improved affordability of apartments in Dubai.

"It must be remembered that a significant proportion of this market is extremely price sensitive, and many residents may choose to benefit from reductions in rentals in Sharjah and the other northern emirates, rather than deciding to relocate. For this reason, a continued daily inflow of commuters into Dubai can be expected."

Normal factors

Ali Hamoudi, a UAE-based economic expert, told Gulf News that tenants should be pushing their landlords for cheaper rents given the current property market.

"The real estate market is not controlled by sentiment as it was in 2007. It is now controlled by normal factors. And since the supply is far higher than demand, the tenant has the power of negotiation," he said.

Commenting on the rising rents in some areas of Sharjah, he said: "I do believe that this 2 per cent rental increase is tentative and includes some people who preferred to pay[than move out]."

The Asteco report found that Ajman apartment rents fell again, driven by low demand and strong supply, with average one-bedroom rates on Shaikh Hamid Road and Corniche Road down by 4 per cent.

Movement is also seen with some developers of ongoing projects approaching those whose developments have stalled and asking investors to transfer.

Fujairah, Umm Al Quwain and Ras Al Kaimah remained stable over the last three months, with no change in apartment rents in most areas.

Comments (18)

  1. Added 16:42 July 18, 2011

    yesterday i found an ad book showing one day offer (one bedroom for Dh22,000 in International city. So how could Sharjah rent go high by 2 per cent?

    Sulaiman, Dubai, United Arab Emirates

  2. Added 15:31 July 18, 2011

    This report is not correct. The real estate company will never say that rent is dropping otherwise it will affect its market. Rents are dropping and with God's will it will continue dropping.

    Mohammad, Sharjah, United Arab Emirates

  3. Added 14:38 July 18, 2011

    this report is not true, i am living in a studio flat near Al Nabba. it was 20k in 2009 and now its only 9k..!!

    Brenny C, Sharjah, United Arab Emirates

  4. Added 14:32 July 18, 2011

    Rent in Sharjah especially Al Nahda have dropped by 35 to 40 per cent within last 2 years for new apartments.

    Sudhi, Dubai, United Arab Emirates

  5. Added 14:23 July 18, 2011

    I do not agree. The rents in Sharjah are further coming down

    Mohaideen, Sharjah, United Arab Emirates

  6. Added 14:21 July 18, 2011

    It is misleading article. You can not judge with one or two cases for all of Sharjah. Rather it should show that rents in Sharjah are still going down and people prefer to stay inspite of the threat of power cuts. Being a leading newspaper we expect some truth rather than assumption.

    Raghu, Dubai, United Arab Emirates

  7. Added 14:03 July 18, 2011

    This not true, rents are going down and still there is lot of supply available and no new demand. definatly it will go down further in coming years, again many units will be ready as the year will pass.

    Ateeque , sharjah, United Arab Emirates

  8. Added 13:59 July 18, 2011

    The above report is abslutely wrong.

    SP, DUBAI, United Arab Emirates

  9. Added 13:42 July 18, 2011

    I live in Al Nahda 2. We came here four months back and we paid Dh24,000 as single payment for a 1 bedroom. Last month we got another house rented for my brother-in-law in our same building and the rent for them was Dh21,000 for single bedroom with one payment.

    Anitha, Dubai, United Arab Emirates

  10. Added 13:24 July 18, 2011

    Rents are high in Dother places compared to Sharjah and people with low income cannot afford this increase. I live in Sharjah and my rent has decreased by Dhs4,000.

    Lorraine, Sharjah, United Arab Emirates

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