By Staff writer
Asteco report says property markets across Northern Emirates remain stable, new supply keeping rates from rising rapidly
Average rents in Sharjah are still 38 percent cheaper than in 2008, as additional supply keeps rates from increasing rapidly, according to a new report from Asteco.
Its UAE Property Review Q3 2016 report revealed that the Northern Emirates property market is stable, with Sharjah apartment rents seeing a 1 percent drop.
It added that Ras Al Khaimah recorded a 1 percent rise compared to the previous quarter, while Ajman also witnessed an increase of 1 percent taking prices closer to their 2008 peak levels - 9 percent lower.
John Stevens, managing director, Asteco, said: “The stabilisation of the market was a knock-on effect, in part, to rental rates in Dubai also balancing out. As a result there was a minimal number of relocations taking place between Dubai and the Northern Emirates.”
Ras Al Khaimah was the star performer, albeit relatively, with a strong tourism and hospitality offering, said Stevens.
“The Emirate currently has 3,600 hotel rooms, and its occupancy rate has risen to 71 percent with more than 40 percent of guests from the UAE. Furthermore, the RAK Free Zone, popular with many small and medium-sized businesses, has created both residential and office demand.”
The report said the rise in Ajman rental rates was attributed to the addition of better quality supply to its stock while also improving its overall offering to residents in terms of retail and road connectivity.
Rents in Fujairah remained stable over the quarter with new supply, such as the Fujairah housing project in Al Taween, which is now 95 percent completed, expected to be handed over before the end of 2016.
Demand levels for office space in Sharjah remained stagnant over the quarter with limited new supply entering the city, leaving rates unchanged for Q3, the report added.