By Andy Sambidge
New Asteco report says Sharjah, Ajman, RAK show increases of 33%, 23% and 18% respectively
Rental values in the Northern Emirates of Sharjah, Ajman and Ras Al Khaimah rose by as much as 33 percent during 2013, according to a new Asteco report.
The real estate consultancy said apartment rents in Sharjah, Ajman and Ras Al Khaimah increased on average by 33 percent, 23 percent and 18 percent respectively.
Its report said apartment rental rates in the most popular areas of Sharjah such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda saw rises of 38 percent last year.
It added that throughout Sharjah rents rose, on average, by eight percent in the final quarter alone.
Sharjah's popular Corniche is still one of the most desirable areas, Asteco said, with a two-bedroom apartment being rented for up to AED70,000 per annum.
"Our research shows that the rental law that was created to protect tenants from steep annual rent increases, is being circumvented by some landlords asking for additional fees for maintenance and extra parking spaces, to compensate for the three-year rent freeze stipulated in the rent law," said John Stevens, managing director, Asteco.
Sharjah Holding is currently developing an integrated mixed-use community known as Al Zahia and will include a range of villas, apartments, and commercial units, which will be a valuable addition to supply, he said.
On the back of increased property prices in Dubai, it is expected that more Arab expatriates will either choose to occupy or invest in Al Zahia, he added.
Elsewhere in the Northern Emirates, RAK, Ajman and Fujairah also witnessed fourth quarter growth of 5-6 percent.
Asteco said the annual rent for a two-bedroom apartment in RAK is now up to AED50,000 per annum, while the cost of a similar property in either Fujairah or Ajman is now up to AED45,000 per annum.
The report added that the commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of one percent since Q4 2012, and rates unchanged in the final quarter of 2013.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.