By Andy Sambidge
New Asteco report shows 34-39% increases but rental values remain up to 36% down on 2008
Rents in Ras Al Khaimah and Sharjah have leapt 39 percent and 34 percent respectively in the past year but they are still well below the peaks of 2008, according to a new report.
Asteco said that the rising rental values remain between 27-36 percent below their values of five years ago.
Its report said property markets in the Northern Emirates have performed positively over the last 12 months, with Ras Al Khamiah and Sharjah leading the way.
Residential rental rates in the Northern Emirates were directly affected by the property downturn in Dubai and experienced overall average declines of 33 percent compared with Q3 2008.
However correlating to Dubai’s continuing upturn rental rates have now recovered by 21 percent on average since last year, the report showed.
“The revival in property rates is particularly apparent in Ras Al Khaimah and Sharjah with both emirates pro-actively fuelling the economy and consequently their respective real estate markets,” said John Stevens, managing director, Asteco Property management.
“Increasing rents across Dubai started a reverse relocation trend in Q2 this year, with budget-sensitive tenants seeking out more affordable accommodation in Sharjah especially commuter areas such as Al Nadha,” said Stevens.
According to Asteco, the commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates 64 percent lower than in Q3 2008, with minimal improvements of one percent compared to last year.
Ajman witnessed residential increases of 19 percent over the last 12 months to the end of Q3. A two-bedroom flat now costs AED35,000 annually, still 31 percent down on Q3 2008.
It was a similar picture in Fujairah with rents increasing by 13 percent, but still 30 percent lower than the 2008 peak. A two-bedroom apartment will now achieve an annual rent of AED34,000, Asteco said.
There was little movement in Um Al Quwain, rates over the past year increased by just two percent, around 40 percent below their Q3 2008 rates. A two-bedroom apartment here will cost AED27,000 per annum.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.