Asking rates for one-bedroom apartments in Sharjah’s Corniche and Al Majaz area have increased by up to 20 per cent in the past six month, market listings analysed by Emirates 24|7 reveals.
Rates, which ranged from Dh38,000 to Dh40,000 per annum (pa) in November 2014, have now reached Dh40,000 to Dh48,000 pa by end of April 2015 in both the areas, registering an increase of 5.26 to 20 per cent.
Real estate brokers told this website that higher rates were only applicable to new tenants.
“The rents for our old tenants haven’t gone up, the increased rate is only for new tenants. But, we are offering them the option of paying rents in four to six cheques,” a manager of a tower in Al Majaz said on conditions of anonymity.
“We are not taking any commission and so the tenants have got a five per cent discount,” he added.
Last week, Asteco, a real estate consultancy, said marginal declines were recorded in Sharjah as rental rates in Dubai continued to settle, bringing down tenant migration.
Preferred areas remained unchanged with the Corniche, Al Nahda, Majaz and Abu Shagara districts continuing to see high occupancy levels in better quality buildings.
“We paid Dh45,000 pa for a one-bed unit with a full view of the Corniche,” said S Kumar, adding older tenants were paying between Dh35,000 pa and Dh38,000 pa.
In 2014, Emirates 24|7 reported that a landlord was free to fix a new rent after the expiry of three-year rent contract.
“It's up to the landlord to increase the rent as s/he deems suitable. If you find the increase unreasonable, you can file complaint at the rent regulation department to decide the proper increase,” Sharjah Municipality had said.
Some residents complain that their landlords do not follow regulations and tend to increase rents every year.
“My rent went up from Dh20,000 pa in 2013 to Dh24,000 pa in 2014. Now I pay Dh27,000 pa in 2015. It is going up every year,” S. Khan, who rents a one-bed in Corniche, told this website.
Article 11A of Sharjah Law No 2 of 2007, the landlord is not entitled to increase the rent under a lease prior to the expiry of three years from the signing of the lease.
Article 11B provides that the increase mentioned in Article 11A shall be according to the market rent of comparable properties and once decided will be applicable to that property for 2 consecutive years.
If the revised rental value cannot be agreed upon by the landlord and tenant, they may refer it to the Rental Committee who 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.