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19 March 2024

Two emirates in UAE where rents have not risen

Published
By Parag Deulgaonkar

Rents in Sharjah jumped 38 per cent in the past one year and seven per cent in the first quarter 2014 compared to the fourth quarter 2013, driven by relocation of tenants from Dubai, according to a new report.

“Budget-conscious Dubai residents are now relocating to Sharjah in a flight to affordability. A vastly improved road network and public transportation, has also benefited the northern emirate,” John Stevens, Managing Director, Asteco, said in its Q1 report on Northern Emirates.

The real estate consultancy believes rents will continue to rise in Sharjah due to lack of new supply in the emirate. Landlords are not allowed to increase rents for existing tenants as the lease rate remains fixed for a term of three years.

However, Asteco stated that rents in Fujairah and Umm Al Quwain did not rise quarter-on-quarter though on an annual basis, the former is up 20 per cent, while the latter saw a mere 2 per cent increase.

Ras Al Khaimah and Ajman witnessed marginal quarterly increases of 2 per cent and 3 per cent, respectively, but are up 23 per cent and 29 per cent, respectively, on an annual basis.

Apartments in Sharjah’s key residential areas such as Al Nahda, Mina and Al Wahda saw average rent increase by 10 per cent to 11 per cent in the first quarter.

“We are also seeing rental increases for Sharjah’s older apartment buildings, which grew by an average 6 per cent quarter-on-quarter, and this reinforces the attractiveness of the emirate to budget-conscious residents,” Stevens added.

Prospective tenants looking for “prime” accommodation in Sharjah can expect to pay between Dh27,000 and Dh50,000 pa for a one-bedroom apartment and Dh32,000 up to Dh80,000 for a two-bedroom unit.

Rental prices for one- and two-bedroom units in the Al Wahda are currently between Dh50,000 and Dh65,000 per year, respectively, with Corniche commanding between Dh50,000 and Dh80,000 per year, respectively.

Expansion of road network was another reason for rents going up, which includes completion of the National Paints Bridge/fifth interchange on the Mohammad Bin Zayed Road.

“Most importantly, we are seeing a complete upgrade of Sharjah’s transportation infrastructure, making the daily commute to Dubai easier and reducing traffic congestion within the emirate,” Stevens said.

In Fujairah, studio, one- and two-bed apartments can be leased for Dh17,000 to Dh20,000 pa; Dh25,000 to Dh35,000 pa and Dh30,000 to Dh45,000 pa, respectively.

As for in the UAQ, Asteco report reveals a studio apartment can be rented for Dh15,000 to Dh20,000 pa, one-bed for Dh18,000 to Dh21,000 pa and two-bed for Dh24,000 to Dh30,000 pa.