Asteco study finds rents in the UAE’s Northern Emirates stable due to minimal relocations from Dubai
A steady supply of new units is preventing rents from increasing rapidly in Sharjah, keeping them on average 38% lower than 2008 levels, according to real estate consultancy Asteco.
The UAE Property Review Q3 2016 report from the consultancy revealed that the Northern Emirates property market is generally stable, with apartment rents in Sharjah seeing minimal change in the third quarter this year to go down by only 1%. Ras Al Khaimah recorded a 1% rise compared to the previous quarter while Ajman also witnessed an increase of 1%, putting rents in the emirate only 9% lower than their 2008 peak.
John Stevens, managing director, Asteco, said: “The stabilisation of the market was a knock-on effect, in part, to rental rates in Dubai also balancing out. As a result, there was a minimal number of relocations taking place between Dubai and the Northern Emirates.”
According to Asteco, new developments in Sharjah attracting investors include Sahara Tower 6 by Al Thuriah, which was announced during Cityscape 2016. Construction of the residential twin tower project has already started and it will feature 376 residential units, which are now on sale and due for handover in Q4 2019.
The report found that rents for studios in new developments in Sharjah range from AED20,000 ($5,445) to AED35,000 ($9,529) on average, while those for three-bedroom units were between AED45,000 to AED90,000. In terms of areas, rental rates in Al Majaz were from AED25,000 to AED35,000 for a studio and AED48,000 to AED90,000 for three bedroom apartments. In the popular Corniche area, meanwhile, rents for studios range from AED26,000 to AED35,000, while those of three bedroom apartments span from AED60,000 to AED95,000.
The report found demand for office space in Sharjah stagnant over the quarter with limited new supply entering the city, leaving rates unchanged for Q3.
Among the Northern Emirates, rents in Ras Al Khaimah were found to be between AED26,000 to AED40,000 for studios and between AED85,000 to 110,000 for three-bedroom apartments for new buildings.
“The RAK Free Zone, popular with many small and medium-sized businesses, has created both residential and office demand,” said Stevens.
Rents in high-end apartments in Ajman ranged from AED22,000 to AED38,000 for studios and between AED42,000 and AED72,000 for three-bedroom apartments, while rents in Fujairah remained stable over the quarter, the report revealed, varying from AED23,000 to AED28,000 for a studio and AED45,000 to AED60,000 for a three bedroom.