Dubai: Dubai’s rapid rent gains will offer respite for landlords in Sharjah – rents in the emirate were higher by 1-2 per cent in the 12 months to end March, according to a new report from property services firm Asteco.
At the Corniche, for instance, two-bedroom apartment rentals are Dh25,500-Dh40,000, while those at Abu Shagara and Rolla are currently averaging Dh20,500-Dh32,000 and Dh17,500-Dh23,000, respectively. The increases have been confined to that narrow under 2 per cent range.
Landlords will therefore take any double-digit increases in adjoining areas of Dubai as well as at communities such as Sports City with a good deal of relief. Since 2015-16, Sharjah’s residential rental space had gone through a sharp correction as tenants either moved to newer buildings in the emirate or went in for a complete shift outside of the emirate to Dubai. Much of that movements happened in the 12 months from October 2020.
Plus, there were new freehold developments such as Aljada and Nasma Residences from Arada, where long-time tenants in Sharjah had bought new homes and moving in as they were getting delivered.
“Landlords in Sharjah and the other northern emirates will be immediate beneficiaries from rent gains in Dubai,” said an estate agent. “With cost of living assuming such significance again, the only competition landlords in these emirates face will be from new buildings. If rents and incentives match those offered at older buildings, then there will be a migration – but still within the emirates.”