Dubai rents ease; Sharjah sees some rise

Rents in some areas of Sharjah have risen 2 per cent over the second quarter of 2011 despite a power cuts, petrol problems and a growing exodus of tenants to Dubai.

Quoting officials from real estate firm Asteco, Gulf News reported that rents for studio apartments in Al Khan and Corniche have climbed up to Dh25,000 though prices have fallen in other areas of the emirate. Office rents in the two areas also saw an increase by 5 per cent.

However, the growing exodus to Dubai, where the rents dipped further, continues even as tenants are prepared to pay the premium to be closer to their work places.

Craig Plumb, head of research at Jones Lang LaSalle Mena, said that the Sharjah market was experiencing "selective stability".

"Some portions of the market are now seeing prices stabilise or even increase marginally, but these sectors are relatively limited and confined to a few select locations.

The average price and rent across the whole market has continued to decline and is likely to decline further for the rest of 2011,” said Plumb, adding that the Dubai market continues to exert downward pressure on rentals and prices in Sharjah and the northern emirates.

Interestingly, rents in Dubai are expected to fall further as hundreds of new units would be ready over the second half of 2011, putting pressure on prices in northern emirates as well.

However, prices in some high end areas in Dubai like Palm Jumeirah and Arabian Ranches have also seen a slight increase.

But, importantly, those locations which are attracting people from Sharjah and the northern emirates — for example International City, Silicon Oasis and Mirdif are still experiencing declines in prices.

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