Asteco says average rents drop 2% in Sharjah, Ras Al Khaimah and Ajman in three months to end of June
Apartment rental rates in the Northern Emirates continued to soften during the second quarter of 2018 with an average quarterly drop of 2 percent and a decrease of 11 percent over the year.
In a new report, real estate consultants Asteco said while high-end properties in Ajman noted the highest annual decline of 13 percent among the Northern Emirates, the drop for the same unit type in RAK was less pronounced at 7 percent.
It said Sharjah office rental rates continued their downward trend with quarterly and annual reductions of 3 percent and 14 percent, respectively.
"Although the Northern Emirates continued to attract both tourists and expatriates, rental rates are not likely to recover in 2018 due to increasing supply. However, the Emirates will remain popular to residents looking for more affordable accommodation and holiday destinations," Asteco said.
The report said phase 4 of Nasma Residences in Aljada, Sharjah will add 302 villa units by the end of 2019 while Fujairah is set to deliver its first Business Centre project by 2020, comprising an office, hotel and serviced apartments component, as well as a shopping mall and retail centre occupying more than 1 million sq ft.
Asteco added that ongoing infrastructure works, advancements in the legislative framework and government-backed, large-scale development projects are expected to stimulate investor and tourism growth in the Northern Emirates.
Asteco said recently completed and upcoming leisure destinations and hospitality projects in Sharjah, Ras Al Khaimah and Fujairah are likely to benefit both residents and tourists.
In Sharjah, it highlighted the Zero 6 Mall, a 400,000 sq ft shopping mall in Al Juraina, which opened in April, the Al Bait Hotel and Al Badayer Lodge, both expected for delivery by the end of 2018, and Fossil Rock Lodge, a luxurious resort with F&B component nearing completion.
In Ras Al Khaimah, the Address Hotel and Residences Al Marjan Island, a 249 room resort as well as 234 apartments, is set for completion by 2019 while InterContinental Hotel in Mina Al Arab with 350 guest rooms and suites is scheduled to open in 2020.
In Fujairah, Mafraq Park in Kalba, with 100,000 sq ft of public leisure facilities is to open within the year.