Sharjah continues to be attractive for renters
Sharjah’s residential rental market has been tracking Dubai for almost two years now, with rates in Dubai down 8% on this time last year, report says
Landlords in Sharjah have lowered rents in order to remain competitive to Dubai and Abu Dhabi, with the emirate seeing an ongoing correction through 2016, according to Cluttons report.
Sharjah’s residential rental market has been tracking Dubai for almost two years now, with rates in Dubai down 8% on this time last year, highlights the Cluttons Winter 2016/2017 Sharjah Property Market Snapshot report.
After dipping by 5.7% in Q1, residential rents in Sharjah fell by 2.5% in Q2 and a further -4.7% during Q3, marking a year to date change of -7.1%.
Suzanne Eveleigh, Property Management Director at Cluttons said: “Despite the ongoing correction, average rents in Sharjah are still 30% higher than they were at the start of 2012, highlighting the strength of rent rises in recent years.
“Still, Sharjah’s rents remain at almost half the levels seen in Dubai or Abu Dhabi, with one bedroom flats in Sharjah rent for roughly AED41,000 per annum, when compared to over AED100,000 per annum in Dubai, or Abu Dhabi.”
Weaker jobs growth and the loss of tenants to Dubai has also led to rising vacancy rates in Sharjah.
Residential rates in neighbouring Ajman have continued to provide an attractive choice for renters with even lower rates than those in Sharjah, providing buildings of equally good quality and similar facility offerings.
“The key to winning back those who have migrated to the more affordable options in Ajman would be through offering flexible payment plans, in addition to better packages, including facilities such as parking,” added Eveleigh.
The report added that there has been an overall decline in tenant requirements due to more residential supply in the emirate.