The residential leasing market in the Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah, Ajman and Ras Al Khaimah (RAK) where apartment rental rates, year-on-year, increased by 33 per cent, 23 per cent and 18 per cent respectively, according to Asteco.
Apartment rental rates in Sharjah rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda last year, the consultancy said in its Q4 2013 report on Northern Emirates.
Furthermore, rental rates throughout Sharjah increased, on average, by 8 per cent in the last quarter alone. Sharjah’s popular Corniche is still one of the most desirable areas; a two-bedroom apartment there now rents for up to Dh70,000 per annum.
“Our research shows that the rental law that was created to protect tenants from steep annual rent increases, is being circumvented by some landlords asking for additional fees for maintenance and extra parking spaces, to compensate for the three-year rent freeze stipulated in the rent law,” said John Stevens, Managing Director Asteco.
Elsewhere in the Northern Emirates, RAK, Ajman and Fujairah also witnessed fourth quarter growth of 6 per cent, 6 per cent and 5 per cent respectively. The annual rent for a two-bedroom apartment in RAK is now up to Dh50,000 per annum, meanwhile the cost of a similar property in either Fujairah or Ajman is now up to Dh45,000 per annum.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of one per cent since Q4 2012, and rates unchanged in the final quarter of 2013.