7.39 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Relocation impact: Average rents in Sharjah jump 16% in one year

Average residential rents in Sharjah have risen by 16 per cent in the past one year.

Published
By Parag Deulgaonkar

Average residential rents in Sharjah have risen by 16 per cent in the last one year, driven primarily by relocation of families from Dubai, according to a new report.

“This rise is a direct result of the hiked rents across Dubai, which has 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.

Asteco expects the trend to continue in the short to medium term.

Though landlords in Dubai have been abiding by the Real Estate Regulatory Agency index for increasing rents, the arbitrary increase has been forcing families looking to move to bigger apartments in the northern emirates, mostly Sharjah.

Apartments in areas including Al Majaz, Al Nahda and Al Qassimia saw average rental increases between 16 per cent and 27 per cent since Q2 2012.

Al Nahda apartments led demand with average annual rents rising 27 per cent from Q2 2012 to Q2 2013, with a two-bedroom now leasing for Dh40,000.

Currently, asking rates for one bedroom apartments in Discovery Gardens is Dh52,000 (one cheque) and Dh55,000 four cheques. Thus, one has to pay 30 to 37 per cent higher than for a two-bedroom unit in Al Nahda.

Al Majaz saw an increase of 24 per cent with two-bedroom units renting for Dh35,000. Al Wahda area registered a 22 per cent increase, with Dh32,000 being the going rent for a two-bedroom apartment.

Villa rents in Al Khan, Sharqan and Al Quz saw 12 per cent increase mostly due to lack of quality stock and rapid growth in tenant interest.

There remains a huge disparity in terms of location increases, 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 two 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.

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.

Asteco report reveals that Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah saw signs of revival, posting annual rental increase of 10 per cent, 8 per cent, two per cent and five per cent, respectively.

ALSO READ:

Dubai's STS chief says no more 'coffin on wheels' from September




Warning for Dubai parents: Day-care centres run in apartments are illegal

Win AED 600 Air Arabia vouchers EVERY DAY!