Dubai: Is it time to move over to Ajman from Sharjah to lease a decent unit without blowing a whole in your pocket?
That's the question residents in Sharjah may be asking as rents in parts of the emirate have jumped by up to 53 per cent in the first quarter of 2014, compared with the same quarter last year, a recent report showed.
The report prepared by Asteco, an independent Dubai-based property consulting firm, showed the biggest jump recorded in Sharjah's Al Wahda area, with 53 per cent between the first quarters of 2013 and 2014.
Tale of two Al Nahdas
From the last quarter of 2013, Al Nahda in Sharjah (one of the Sharjah residential districts closest to Dubai) posted the highest rental spike, at 11 per cent in the first quarter of 2014, Asteco figures show.
There’s one bit of good news, though, as rents have stayed flat in Al Yarmouk district, where no rent increases were recorded between the last quarter of 2013 and the first quarter of this year.
Apartments in Al Yarmouk district posted a minimum rent spike of 17 per cent year-on-year.
As in any other city, the quality, location or age of buildings determine rent increases.
For older type apartments, a 6 per cent increase was recorded quarter on quarter, while rates for units in newer buildings rose by 7 per cent in the first three months of 2014.
The northern emirates had a slightly different rental scene.
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 Khaiman and Ajman, respectively.
On the commercial sector, the leasing rate saw a marginal average increase of 2% in the last three months.
Popular areas achieve higher occupancy rates such as the Corniche and Al Wuheidah Street on Sharjah and witnessed a quarter-on-quarter rise of 8 per cent and 5 per cent, respectively.
However, leasing rates in other commercial locations remained stable since the end of last year, Asteco reported.
