RAK, Sharjah lead N Emirates property revival
Dubai, October 9, 2013
The property markets in the Northern Emirates have performed positively over the last 12 months, with Ras Al Khamiah and Sharjah leading the way with a rental growth of 39 per cent and 34 per cent respectively, said a report.
The residential rental rates in the Northern Emirates were directly affected by the property downturn in Dubai and experienced overall average declines of 33 per cent compared with third quarter 2008, according to global property expert Asteco.
However, correlating to Dubai’s continuing upturn rental rates have now recovered by 21 per cent on average since last year, said Asteco in its special Cityscape Global, Northern Emirates report.
“The revival in property rates is particularly apparent in Ras Al Khaimah and Sharjah with both emirates pro-actively fuelling the economy and consequently their respective real estate markets,” said John Stevens, the managing director of Asteco Property management.
In Ras Al Khaimah, the rental rates have registered a 39 per cent year-on-year growth and are now only 27 per cent below their peak rates in third quarter of 2008. A two-bedroom apartment now commands Dh40,000 ($10,888) per annum in rent.
In Sharjah, the average leasing costs increased by 34 per cent compared to a year ago and are only 36 per cent off their 2008 highs. The best performing areas in Sharjah were Al Wahda, Al Majaz and Al Nadha, which recorded annual growth of 56 per cent, 49 per cent and 47 per cent respectively.
An average two-bedroom apartment on Sharjah’s popular Corniche now rents for Dh52,000 per annum, said the report.
“Increasing rents across Dubai started a reverse relocation trend in Q2 this year, with budget-sensitive tenants seeking out more affordable accommodation in Sharjah especially commuter areas such as Al Nadha,” said Stevens.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates 64 per cent lower than in third quarter 2008, with minimal improvements of 1 per cent compared to last year.
According to Asteco, Ajman witnessed increases of 19 per cent over the last 12 months to the end of third quarter. A two-bedroom flat now costs Dh35,000 annually, still 31 per cent down compared to third quarter of 2008.
It was a similar picture in Fujairah with rents increasing by 13 per cent, but still 30 per cent lower than the 2008 peak. A two-bedroom apartment will now achieve an annual rent of Dh34,000, the report stated.
There was little movement in Um Al Quwain, rates over the past year increased by a mere 2 per cent, around 40 per cent below their third quarter 2008 rates. A two-bedroom apartment here will cost Dh27,000 per annum, it added.-TradeArabia News Service