Rental rates for apartments in Sharjah declined an average of six percent in the second quarter with some areas falling as much as 21 percent following the introduction of tougher tenancy rules, according to property consultant Asteco.
Annual rents for apartments along the Mina Road and in Al Yarmouk declined 21 percent and 12 respectively while property along the commuter belt in Al Khan and Al Nahdah fell just one percent compared to the previous quarter.
“New regulations regarding shared accommodation have been introduced with tenants in Sharjah required to disclose their salaries and confirm that people living together are family members only,” Elaine Jones, CEO of Asteco Property Management said in a statement.
“Subsequently, we have seen tenants who previously shared accommodation, move independently to more affordable smaller units, prompting a decline in rental rates,” she added.
Tenants in Sharjah must now provide detailed documents for all people staying in their home under strict new laws introduced in May.
The new regulations, aimed at clamping down on the number of bachelors sharing accommodation, limit the number of people allowed to reside in a property and also bar people on visit visas from renting.
Apartments in the Cornice area, which commands the highest rates in the emirate, saw a marginal gain of two percent, quarter-on-quarter, Asteco said in its quarterly report on property prices in the Northern Emirates.
The cost of renting a villa in the emirate remained steady with a three-bedroom property in Al Khan (Mamzar), Shargan and Al Quz costing around AED70-77,500 ($19-21,000) annually.
Rental rates in neighbouring Ajman remained steady along the major thoroughfares, such as Sheikh Khalifa Road, Al Quds and Al Nakheel, but declined an average of six percent on Sheikh Hamid Road and Corniche Road.
“Ongoing issues with utility connections, especially those in new buildings, is still a major issue for prospective tenants who are placing generator-powered buildings firmly at the bottom of their housing wish lists,” said Jones.
The cost of renting an apartment in Umm Al Quwain and Fujairah remained steady while Ras Al Khaimah, which fell slightly in the first quarter, started to stablise toward the end of the second quarter, noted the report.For all the latest business 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.
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