CBRE says further declines will be driven by downward trend in Dubai and Sharjah
Rental values in Ras Al Khaimah are set to continue to fall over the next few months, driven by similar negative trends in the Dubai and Sharjah markets, according to consultants CBRE.
Average rents in popular freehold locations such as Al Hamra Village and Mina Al Arab witnessed a dip of around 2 percent during the second quarter of 2017, taking the full year decline to 6 percent.
Average rents for a studio unit in Al Hamra Village and Mina Al Arab range from around AED22,000-30,000 per annum, with 1-beds from AED35,000-50,000, and 2-beds from around AED60,000-70,000, CBRE said.
It added that subsequent to the handover of the Bermuda Villas at Mina Al Arab earlier in the year, and the ongoing delivery of the Pacific project on Al Marjan Island, completion of new freehold properties in the emirate will see a period of relatively low supply, until deliveries start to increase again from 2019 onwards.
“Ras Al Khaimah’s residential market continues to suffer from weaker demand fundamentals and the added pressure of declining rentals in neighbouring emirates, which combined have brought about further downside in rental performance”, said Mat Green, head of Research & Consulting UAE, CBRE Middle East.