'Sharjah residential property market softens'
Sharjah's residential property market is beginning to show signs of softening as we near the end of 2015, according to Cluttons
Sharjah's residential property market is beginning to show signs of softening at the end of 2015, according to Cluttons.
However, the real estate consultancy said this is not holding back new communities which are continuing to emerge as the population and developments spread further north.
Residential rents during Q3 2015 stagnated and recorded a marginal 0.3% increase, while year-on-year rents now stand at 1.6% below this time last year, according to Cluttons' Sharjah 2015/2016 Winter Property Market Snapshot.
This is the first time in over two years that average annual residential lease rates have contracted, but demand still remains for high quality stock and gated community living.
Faisal Durrani, head of research at Cluttons, said: "Rising supply levels across many areas of Sharjah, coupled with price reductions in Dubai offering a shorter commute and increasing value for money in Ajman are starting to undermine rents.
"However, well-managed buildings that are perceived to offer better quality and increased facilities still have longer waiting lists than lower quality buildings and continue to drive demand.
"At the same time we are seeing reduced waiting lists for what is perceived to be lower quality stock."
The report highlights that new communities and gated villas have continued to outperform the wider residential market, particularly apartments, with rents rising by 4.1% during the first 9 months of 2015.
This is in part due to developers focusing on this segment of the market, with the latest scheme to emerge being the Sharjah Waterfront City, where 1,500 villas are planned.