Compared to Q3 2009, the decline in rental rates in the final quarter of 2009 for Sharjah apartments have slowed considerably with a quarter-on-quarter change of minus 5%, according to report, by Asteco, the largest property services company in the United Arab Emirates
There were also minimal changes in the last quarter for villa rents, with no change for three and four-bedroom villas although five-bedroom units decreased by just 4%, implying that smaller units have stabilised, with minor decreases for larger units.
“Smaller units have shown signs of increased interest due to demand from young families and a lower price point,” the report adds. “Villa developments currently under construction in the neighbouring emirates are likely to have a downward effect on rental rates once they are completed,” says Asteco’s fourth quarter report on the Northern Emirates published today (19 January 2010).
Looking at rates throughout the whole of 2009, Fujairah was the least affected of the five Northern Emirates with an average fall of 10%. Since the first quarter of 2009, rental rates in Umm Al Quwain declined by 15% with rates in Ras Al Khaimah, Ajman and Sharjah decreasing by 17%, 25% and 26% respectively, In Fujairah, studios are available for an average of AED19,500 whereas one, two and three bedroom units cost AED24,000, AED30,000 and AED45,000 per annum respectively - the same level as the previous quarter.
Sharjah remains the most expensive of the Northern Emirates with average rents of AED21,000, AED30,500, AED39,000 and AED50,500 for studios, one, two and three bedroom apartments. For the same size properties, Ras Al Khaimah rental rates average AED21,000, AED28,000, AED34,000 and AED47,500 per annum; Ajman AED20,000, AED28,000, AED32,500 and AED47,000; with Umm Al Quwain the most affordable with average rental rates of AED15,500, AED20,500, AED29,000 and AED39,500.
Sharjah office rental rates have experienced an average decrease of 9% from quarter three to quarter four 2009 which is in line with the drop in the previous quarter. Rental rates averaged AED55 per square foot per annum in the last quarter. The highest rental rates were recorded for the Corniche area and Al Taawun Road at AED70 per square foot per annum.
“Overall, the average percentage change for office space was minus 41% since the beginning of 2009 and is expected to further decline until the economy recovers,” the report concludes.