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According to Cluttons’ recent market report on real estate trends in Sharjah, rents in Industrial Area 18 have witnessed a significant jump in the last few years, owing to its updated infrastructure.
The average annual rent here estimated to be Dh16 per square foot three years ago is now around Dh25-30 per square foot per year.
Paucity of available land in core industrial areas has also pushed up demand, leading to the escalation of rents. The steep rentals and limited land are forcing many companies to relocate to peripheral areas like Saja’a Industrial Area and Emirates Industrial City (EIC).
Cluttons’ recent survey foresees annual rents in these areas to shoot up from their current rentals of around Dh20-25 to Dh45, provided the infrastructure facilities in these areas get a facelift.
For instance, the Al Hanoo Industrial Area and Sharjah Investment Centre (SIC) are being earmarked as future industrial hotspots in Sharjah. The Al Hanoo cluster located in Saja’a caters to the growing automotive industry. SIC, situated on Shaikh Mohammad bin Zayed Road near Sharjah International Airport and Hamriyah Port, is an industrial district containing warehouses and other facilities for light and medium-scale industries.
The office rents in Sharjah are yet to be affected by the uncertainty of the oil prices, thanks to the growth of other business activities like banking and finance, aviation and SMEs. These sectors are leading the demand for prime office space.
Office rents in Al Soor and the fringe areas of Al Majaz have witnessed a 9.1 per cent and 8.3 per cent annual rent hikes, respectively last year. The annual rents of Grade A office space in Sharjah hover between Dh65 and Dh75 per square foot.
• Hanoo and SIC expected to be the future industrial hotspots
• Peripheral industrial areas in Sharjah witnessing rising demand
• Office rents in Sharjah yet to be affected by fluctuating oil prices
Source: S. Dhar, Special to Properties
The writer is a freelancer