By Courtney Trenwith
The relatively expensive rent for a villa in Dubai or Abu Dhabi has helped the conservative emirate soar 11% already this year
The cost of renting a villa in Sharjah has soared this year as more people move away from Dubai and Abu Dhabi.
Villa rents in the conservative emirate rose 11.7 percent in the first six months of the year, according to international real estate consultancy Cluttons. The average price is now AED112,000 a year, compared to AED140,000-150,000 for villas at the lower end of the spectrum in Dubai and Abu Dhabi.
“Demand for villas in Sharjah is likely to continue rising, fuelled by the relative affordability of homes compared to those in Dubai, which in turn will remain a key catalyst behind the multitude of mixed use freehold projects bubbling through,” Cluttons head of Sharjah Suzanne Eveleigh said.
“We are already seeing a number of new villa projects coming to market that provide quality, affordability and accessibility, including communities by Majid Al Futtaim, GIBCA and Faisal Holding. We expect to see continued demand for these developments as they reach completion.”
However, apartments in Sharjah are less in demand, falling 7 percent in the first half of 2017 after an 8.1 percent decline in 2016.
Broken down, one-bedroom residences fell the most, plummeting by almost 20 percent to AED38,000 a year. Three-bedroom apartments were the only sub-category to increase, reaching an average AED70,000 a year.
Eveleigh said the downward trend for apartment rents in Sharjah followed those in Dubai, where they had fallen 5-7 percent as landlords moved to remain competitive.
“The decrease in prices has kept tenants interested and thus kept the number of enquiries for apartments at a sustained level, despite a number of companies downsizing their staff requirements,” she said.