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Sharjah rents up by 16pc as relocations rise
Dubai, July 28, 2013
Sharjah’s residential rental market is on the ascendant, with the emirate recording steady rental rate growth over the last 12 months with an average rise of 16 per cent and fueling a reverse relocation trend, a report said.
Apartments in popular commuter areas including Al Majaz, Al Nahda and Al Qasimiah have seen average rental increases from 16 per cent up to a high of 27 per cent since Q2 2012; and this trend is expected to continue in the short to medium term, according to the latest Northern Emirates Focus report from leading UAE property management company, Asteco.
“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,” said John Stevens, managing director, Asteco Property Management.
Al Nahda apartments led demand with average annual rents jumping by 27 per cent from Q2 2012 to Q2 2013, with a two-bedroom fetching Dh40,000 ($10,880), followed by Al Majaz with a 24 per cent increase and two-bedroom units reaching Dh35,000. The busy Al Wahda area achieved a solid 22 per cent increase, with Dh32,000 the going rental rate for a two-bedroom apartment.
Demand for villas is also on the rise, with rental rates following suit. Asteco recorded average increments of 12 per cent for villas located in Al Khan, Sharqan and Al Quz; attributing the rise to lack of quality stock and rapid growth in tenant interest. However, the disparity in location increases was significant, with Al Khan (Al Mamzar) surging by 33 per cent year-on-year to reach Dh130,000 for a four-bedroom home, but Sharqan and Al Quz recording a nominal 2 per cent increase for the same period.
“The short to mid-term outlook for the Sharjah property market is positive, and 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,” said Stevens.
Projects on the starting block include Maleiha a mixed-use development designed to reflect the region’s archaeology and diverse eco-system, with hotels, resorts and restaurants, and a special focus on the area’s protected sites.
Infrastructure expansion will see a dual four-lane carriageway extend King Abdul Aziz Road from Abu Shagara Tunnel to Al Jubail street along the Creek, as well as the planned development of Al Arouba Street, home to several government departments.
It's a different story for the majority of Sharjah’s office rental market, with the Asteco report noting marginal decreases of 1 per cent on average. This is due to limited interest from new companies in the Northern Emirates. However, the popular areas of the Corniche, Mina Road and Al Wahda experienced notable increases of 9 per cent, 5 per cent and 4 per cent respectively.
The other Northern Emirates of Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah also saw signs of revival, posting year on year apartment rental increases of 10 per cent, 8 per cent, 2 per cent and 5 per cent respectively. – TradeArabia News Service