Demand outstrips supply of flats in Fujairah

Residents as well as newcomers are finding it difficult to find flats to rent with none available and more than six buildings still under construction.

The emirate's remarkable economic development has resulted in hectic activity in the local real estate market during the last six months, with demand for new flats increasing by more than 25 per cent over the number available.

All the residential buildings which were put on the Fujairah real estate market at the beginning of this year have been rented out by the increasing number of businessmen, executives and managers who have recently set up private commercial and industrial establishments here.

"The deluxe flats in the recently-constructed residential buildings had better finishing, features and other facilities, offering almost luxurious accommodation.

"The new tenants have rented them all, although the rents were high," said Jamal Shureih, marketing manager of Fujairah Real Estate Agency.

He attributed the rise in demand to the increasing number of people and new investors who have come to Fujairah. Supply could not match demand.

Landlords are no longer constructing residential buildings like before due to the new instructions and procedures recently imposed by the Fujairah Municipality to organise the construction boom.

"Fujairah Municipality has recently stopped granting landlords construction licences to build whatever they like by way of residential buildings to ensure a balance and upgrade the construction boom of the emirate in stages," he said.

More than 180 residential flats in six new buildings, which are still under construction, will be available for rent at the beginning of next month.

Local landlords and investors in Fujairah are planning to construct around 10 new residential buildings within the next five months.

Most of the luxury accommodation recently on offer features improved facilities and services, he explained.

More flats with central air-conditioning have been introduced in the local real estate market, with deluxe finishing and larger spaces resulting in rent hikes.

Prevailing rents

A one-bedroom flat with central air-conditioning on Hamad bin Abdullah street rents for Dh13,000 to Dh15,000, a two-bedroom flat Dh18,000 to Dh25,000, and a three-bedroom flat goes for Dh25,000 to Dh40,000.

In Al Faseel area, a one-bedroom flat rents for Dh12,000 to Dh14,000, a two-bedroom flat Dh18,000 to Dh20,000, and a three-bedroom flat Dh25,000 to Dh40,000. On Sheikh Zayed Street a one-bedroom flat is available for Dh9,000 to Dh10,000, a two-bedroom flat Dh11,000 to Dh13,000, and a three-bedroom flat Dh 13,000 to Dh 16,000.

A one-bedroom flat with window air-conditioning on Hamad bin Abdullah Street rents for Dh9,000 to Dh11,000, a two-bedroom flat with the same facility rents for Dh12,000 to Dh14,000 and a three-bedroom flat costs Dh14,000 to Dh18,000.

In Al Ghurfa Street, a one-bedroom flat rents for Dh9,000 to Dh10,000, a two-bedroom flat Dh10,000 to Dh13,000 and a three-bedroom flat Dh13,000 to Dh15,000.

The same rents are available on Sheikh Zayed Street and Al Muntazah and Al Faseel area.

Only a few villas were built this year, mainly in the Al Faseel area close to the Fujairah Women's College and other educational institutions.

A standard villa with window air-conditioning is available for Dh14,000 to Dh18,000, said Shureih, while a two-storey villa can be rented for Dh40,000 to Dh60,000 and it will have a split unit air-conditioning system.