Sharjah rent decline speeds up

Sharjah rent decline speeds upImage Credit: Supplied

Rents in Sharjah continued to decline in Q1, falling by an average of 5.7 per cent, dragging the annualised rate of change down to -8.3 per cent, according to a Cluttons report. This follows a 2.4 per cent increase in the 12 months to Q4 2015. This, however, masks the gradual decline witnessed over 2015. While Q1 2015 saw an 11.8 per cent growth in rents compared to the same period in 2016, the annualised rate of change fell to 3.3 per cent in Q2, before falling into a negative territory with a 1.6 per cent decline in Q3 and a further 2.8 per cent decline in Q4. Unlike last year, however, the fall in villa rents has accelerated, with average rates declining by 13.2 per cent in Q1 2016 alone. For apartments, average rents were down by 1.5 per cent in the first quarter, leaving them 7.7 per cent down on this time last year.

Market conditions

In addition, there is a growing awareness amongst tenants to seek out well managed properties, with good facilities and rents that are perceived to be 'fair'. For instance, of the 3,600 units under Cluttons' management in Sharjah, there is an average void period of approximately 3 per cent, with many buildings operating at full capacity. Some of the buildings have long waiting lists, despite general weakness in tenant demand across the market. It is worth noting that the 3 per cent void is up slightly from the usual 0.5 to 1 per cent, reflecting the tougher market conditions for landlords.

Find out the cheapest areas to rent in Dubai in 2016

Source: Property WeeklyPW


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