UAQ is the most affordable emirate: survey

Sharjah villa and office markets have remained relatively stable over the past three months as apartment rates across the Northern Emirates declined in the range of 2-8 per cent, according to a new report.

The ripple effect of affordability, which has seen tenants upgrade to neighbouring emirates such as Dubai is still evident but slowing, Asteco Property Management said in the Northern Emirate third quarter report.

According to the real estate consultancy, Yarmouk was the best performing area of Sharjah with no change in rents between the second and third quarter, putting three-bedroom properties at Dh37,500 per annum. Overall, rents for studio, one, two and three-bedroom apartments declined 2-8 per cent.

Umm Al Quwain, meanwhile, is the most affordable emirate with average rates of Dh25,000 per annum.

"The recent problems Sharjah has been facing have contributed to the downward pressure on market prices. Another factor which has had a negative effect on the Sharjah rental market is the volume of new supply coming to the market, as well as the decline in rental rates in neighbouring Dubai, which have returned to 2005-2006 levels," said the report.

Apartment leasing costs across the rest of the Northern Emirates have followed a similar pattern as Sharjah with Ras Al Khaimah declining an average of two per cent and Fujairah subject to a three per cent decrease. Ajman has also suffered as people migrated to Sharjah.

"Tenants are still moving from one emirate to another but at lower numbers than before with rental rates at more affordable levels, forcing landlords to drop their prices to maximise occupancy levels," said Elaine Jones, CEO, Asteco Property Management.

The Sharjah villa market did not record any price changes from second quarter to third quarter with Al Quz, therefore, remaining the most expensive residential area for villas at Dh82,500 for three-bedroom properties. Elsewhere, Al Khan, and Shargan commanded Dh80,000 and Dh75,000, respectively for three-bedroom villas.

In the office market, Sharjah's Corniche Area and Al Taawun Road continued to command the highest prices at Dh60 per annum per square foot. The report said the flat market was "primarily due to the downturn in the economy".

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