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Residential rental growth rate slows down in the first quarter while the commercial market remains broadly stable, according to Asteco report released exclusively to PW.
Sharjah and the Northern Emirates
• Rental rates for apartments and villas across the northern emirates rose by 7 per cent in the first quarter, with only a few notable fluctuations in selected areas in Sharjah.
• The average rental rates for apartments in Sharjah increased by 7 per cent compared to the previous quarter, and year-on-year growth amounted to 38 per cent during the same period.
The increase was largely due to the steady influx of people who are looking for affordable accommodation.
• Apartments in areas such as Al Nahda, Mina and Al Wahda in Sharjah have seen average rental increases ranging from 10-11 per cent since the fourth quarter.
Asteco anticipates rental rates to continue their upward trend throughout the year, especially since no major additional supply is expected.
• Office rental rates across the majority of areas in Sharjah saw marginal increases of 2 per cent on average. Popular areas, however, have experienced notable increases with rents in the Corniche and Al Wuheidah Street rising 8 per cent and 5 per cent, respectively.
• Severalretailimprovements are currently in progress, which will enhance Sharjah as a residential and tourism destination. For instance, numerous retail centres in various locations such as Al Khan and Al Qasba are currently under development, together with the expansion of Sharjah City Centre.
• Additionally, a Romanstyle amphitheatre covering 7,238 sq m, which will accommodate up to 4,500 people, is expected to be completed by the second quarter on Majaz Island. This development will attract additional tourists to Sharjah, and further increase the variety of leisure options available
• Ongoing works to improve the road network and public transportation services are now under way, which will improve the connectivity between the rest of the emirates and develop Sharjah as a principal residential destination. Road works at the fifth industrial interchange (National Paints Bridge) is one example of the expansion projects being carried out on Mohammad Bin Zayed Road in Sharjah, which was recently completed and open to traffic.
Source: Property Weekly