Average rent for one-bed apartments in Sharjah is Dh40,000 per annum (pa), which is almost 23 per cent cheaper than International City and 43 per cent than Discovery Gardens, two of the most-affordable residential communities in Dubai, reveals a comparison of data released by Land Sterling.
The real estate consultancy’s second quarter 2015 report puts average rents for one-bed units in International City at Dh52,000 pa and Dh70,000 pa in Discovery Gardens.
The Q2, 2015, ‘Sharjah Property Watch’ report puts cheapest one-bed units in Al Qassimia and Al Muwaileh areas. Rents range from Dh28,000 to Dh36,000 pa, while in the latter it is between Dh30,000 and Dh35,000 pa.
Rates in Al Majaz and Al Khan areas are, however, pretty high, with units ranging from Dh40,000 to Dh48,000 pa and Dh35,000 to Dh52,000 pa, respectively.
Rentals have remained stable in the one- and two-bedroom market segment in the second quarter 2015 compared with the first quarter 2015, but three-bedrooms have witnessed a decline of six per cent quarter-on-quarter (q-o-q).
In May 2015, Cluttons, a real estate consultancy, said rents in Sharjah had remained stable in the first quarter 2015, driven by tenants ‘re-migration’ to Dubai, or opting for Ajman, which offers ‘value for money’.
“The ensuing impact of this rapidly changing market dynamic has caused rental growth in Sharjah to stall, with little or no growth being registered in the first quarter 2015 across all the city’s major sub-markets,” the real estate consultancy said in its ‘Spring 2015 Property Market Outlook’.
Article 11A of Sharjah Law No 2 of 2007 states that a landlord is not entitled to increase the rent under a lease prior to the expiry of three years from the signing of the lease. However, the landlord is free to fix a new rent after the expiry of three-year contract.
If the landlord and tenant do not agree upon the revised rental value, they may refer it to the Rental Committee, which will settle the dispute and place a rental value on the property in question.
Article 15A provides for the criteria which the Rental Committee will consider in determining the rental value. These include (i) the location of the property, (ii) number of floors in the property, (iii) the level of the property within the building, (iv) the finishes to the property, (v) services within the building, (vi) the age of the building according to the completion certificate and (vii) the area of the building.