Thank you, Dubai: 'Flight to affordability" hikes rent in Sharjah
Sharjah is benefiting from ongoing rental rate rises in Dubai as residents look to relocate to more affordable accommodation according to a Q1 2014 northern Emirates report from Asteco, the region’s leading real estate services company.
On average the emirate recorded 7 percent quarter-on-quarter growth for apartment rentals, and a strong year-on-year figure of 38 percent, while rates in the other northern emirates of Fujairah and Umm Al-Quwain remained stable, with Ras Al-Khaimah and Ajman showing marginal growth of 2 percent and 3 percent respectively in Q1 2014.
“Budget-conscious Dubai residents are now relocating to Sharjah in a flight to affordability,” said John Stevens, managing director, Asteco.
“A vastly improved road network and public transportation, has also benefited the northern emirate,” said Asteco.
Apartments in key residential areas such as Al-Nahda, Mina and Al-Wahda have seen average rental increases of 10 percent to 11 percent in the last three months and Asteco expects rental rates to continue on their upward trend through to the end of the year with no new supply due to come online.
“We are also seeing rental increases for Sharjah’s older apartment buildings, which grew by an average of 6 percent quarter-on-quarter, and this reinforces the attractiveness of the emirate to budget-conscious residents,” said Stevens.
Prospective tenants looking for ‘prime’ accommodation in Sharjah can expect to pay anywhere between AED 27,000 to AED50,000 for a desirable one-bedroom apartment and AED32,000 up to AED80,000 for a two-bedroom unit.
Rental prices in the Al-Wahda neighborhood are currently fetching up to AED50,000 and AED65,000 for a one and two-bedroom apartment respectively, with similar buildings located in the popular Corniche stretch commanding up to AED50,000 and AED80,000 respectively.
Sharjah’s commercial sector has also seen leasing rate increases in several popular locations over the last quarter with the Corniche and Al-Wuheidah Street recording growth of 8 percent and 5 percent respectively despite continued sector stagnation with just 2 percent growth overall.
- Good news for Dubai's real estate as deals boosted by $31 billion
- Sale prices in Abu Dhabi's residential property sector up by 17 percent in H1
- Unholy spending? Luxury leasing options on the rise in Mecca
- Ajman: a viable, more affordable property market?
- Putting things in perspective: how many apartments in the Middle East can Ronaldo buy with his World Cup salary?