Rents in Northern Emirates spiked in 2013
The residential leasing market in the UAE’s Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah, Ajman and Ras Al Khaimah where apartment rental rates, year-on-year, increased by 33 per cent, 23 per cent and 18 per cent respectively, according to a Northern Emirates Q4 2013 report from Asteco, the Middle East’s largest full service real estate company.
Apartment rental rates in Sharjah rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda in 2013. 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 70,000 dirham 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.
Sharjah Holding is currently developing an integrated mixed-use community known as Al Zahia and will include a range of villas, apartments, and commercial units, which will be a valuable addition to supply. On the back of increased property prices in Dubai, it is expected that more Arab expatriates will either choose to occupy or invest in Al Zahia.
Elsewhere in the Northern Emirates, Ras Al Khaimah, 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 Ras Al Khaimah is now up to 50,000 dirham per annum, meanwhile the cost of a similar property in either Fujairah or Ajman is now up to 45,000 dirham per annum.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of 1 per cent since the fourth quarter of 2012, and rates unchanged in the final quarter of 2013.
The residential leasing market in the UAE's Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah, Ajman and Ras Al Khaimah where apartment rental rates, year-on-year, increased by 33 per cent, 23 per cent and 18 per cent respectively, according to a Northern Emirates Q4 2013 report from Asteco, the Middle East's largest full service real estate company. Apartment rental rates in Sharjah rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda in 2013. Furthermore, rental rates throughout Sharjah increased, on average, by 8 per cent...
The residential leasing market in the UAE’s Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah, Ajman and Ras Al Khaimah where apartment rental rates, year-on-year, increased by 33 per cent, 23 per cent and 18 per cent respectively, according to a Northern Emirates Q4 2013 report from Asteco, the Middle East’s largest full service real estate company.
Apartment rental rates in Sharjah rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda in 2013. 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 70,000 dirham 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.
Sharjah Holding is currently developing an integrated mixed-use community known as Al Zahia and will include a range of villas, apartments, and commercial units, which will be a valuable addition to supply. On the back of increased property prices in Dubai, it is expected that more Arab expatriates will either choose to occupy or invest in Al Zahia.
Elsewhere in the Northern Emirates, Ras Al Khaimah, 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 Ras Al Khaimah is now up to 50,000 dirham per annum, meanwhile the cost of a similar property in either Fujairah or Ajman is now up to 45,000 dirham per annum.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of 1 per cent since the fourth quarter of 2012, and rates unchanged in the final quarter of 2013.
