Sharjah’s residential rental market is on the up, according to a new report by Asteco, with average rents rising 16 percent in the last 12 months.
The property consultancy said the rise was due to hiked rental values across Dubai which “have sparked a reverse relocation trend” with tenants seeking out more affordable accommodation in Sharjah.
John Stevens, managing director, Asteco Property Management, said: “The short to mid-term outlook for the Sharjah property market is positive, and this sustained demand is being carefully monitored by the government as it looks at future economic stimuli, with infrastructure and construction project initiatives leading the agenda.”
The Asteco report said apartments in popular commuter areas including Al Majaz, Al Nahda and Al Qasimiah have seen average rental increases from 16-27 percent since Q2 2012, adding that it expects this trend to continue in the short to medium term.
Al Nahda apartments led demand with average annual rents jumping by 27 percent with a two-bedroom fetching AED40,000.
According to Asteco, demand for villas is also on the rise, with rental rates of 12 percent for villas located in Al Khan, Sharqan and Al Quz.
The report revealed a different story for the majority of Sharjah’s office rental market, with marginal decreases of one percent on average.
“This is due to limited interest from new companies in the Northern Emirates. However, the popular areas of the Corniche, Mina Road and Al Wahda experienced notable increases of nine percent, five percent and four percent respectively,” Asteco said.
It added that the other Northern Emirates of Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah also saw signs of revival, posting year on year apartment rental increases of 10 percent, eight percent, two percent and five percent respectively.
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