Tenants on the move in Northern Emirates

Owners of old buildings in Northern Emirates are finding it difficult to retain tenants, as more and more renters move or upgrade to new buildings.

The phenomenon is now visible across the Northern Emirates with Asteco, a real estate consultancy, pointing to a five per cent decline in rents in the third quarter compared to the second quarter due to the summer/Ramadan holidays and tenants moving to new buildings with better facilities within the emirate or to Dubai.

Sharjah villa rentals too softened by four per cent for similar reasons. 

In order to retain tenants, landlord are offering incentives such as 14 month lease offer with payment in 12 cheques with no commission fees.

The office market has witnessed declines of six per cent on average since the second quarter. This is due to businesses relocating to new developments   in more popular areas within Sharjah or opening offices in Dubai,   which is more convenient and requires less paper work.

Rental rates in the other Northern Emirates, namely Ajman, Ras Al   Khaimah, Umm Al Quwain and Fujairah, remained stable. 

Ajman  has  seen  an  increase  in  supply  with  the  handover  of  various new projects including Falcon Towers, which comprises   approximately 840 apartment units spread over seven residential   towers as well as one office tower.

However, demand is low due to  declining rates in Sharjah causing people to relocate there.
 
New developments are also being handed over in Fujairah and Ras Al Khaimah, which will ultimately result in people relocating to the newer buildings and will have an adverse effect on rental rates in mature  projects, Asteco said.

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