Sharjah rent alert: Save 5 per cent… And where to find 2-bedroom @ Dh38,000

Growing demand for apartments in Sharjah has increased rents by almost 15 per cent in the last 12 months, according to Cluttons.

In its latest report, the global real estate consultancy said rents rose by 4.6 per cent in the third quarter, though the pace slowed down from the second quarter, when the increase was reported at 5.7 per cent.

“This combination of culture and lifestyle blended with affordability means that rental values are now 15 per cent up on this time last year in the emirate,” Steve Morgan, head of Cluttons Middle East, said.

Direct leasing

However, Sharjah landlords are looking of offset the rental rise by offering direct leasing.

This means renters will be able to save five per cent of their annual rent in commission charged by property agents.

Bin Kamil Real Estate, a real estate agency in Sharjah, is offering direct leasing for its projects on Al Wahda Road, near Sharjah City Centre and Buhairah Corniche.

Asking rents for two-beds are Dh36,000 per annum (pa) and Dh38,000 pa respectively and have to be paid in four cheques.

No rent-free period

Though their adverts still state a one-month rent-free period, a company executive said the offer does not exist anymore.

He added the company was following Sharjah Municipality’s regulations, which bars the landlord to increase rents for three years for existing tenants.

Juma Al Majid Establishment, a real estate group, is advertising on a real estate portal, offering direct leasing of units in their Sharjah projects.

The company is offering a 1,700 square feet 2-bed luxury apartment for Dh60,000 pa in Al Nahda, while another of its listing (for a different tower) puts a two-bed unit in the same area for Dh40,000 pa.

Dubai effect

According to Cluttons, Al Nahda rents jumped 5.8 per cent in the third quarter, making it the strongest performing apartment submarket due to demand rippling across from Dubai.

Supply of residential stock is limited, resulting in near 100 per cent occupancy levels in the city centre, believes the consultancy.

“Although some schemes that were put on hold in the downturn are now being resurrected, delivery times will have little impact in the short term and landlords are compounding the issue by holding back on releasing units to the market until a perceived peak is reached,” Morgan added.

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