Sharjah sees softening of rents due to new supply

Sharjah rentsImage Credit: Supplied

Rental rates have declined in Sharjah by around 3 per cent during the second quarter of the year. According to Asteco’s latest real estate market report, the dip in rentals from the first quarter of 2015 is due to the new supply entering the market and the reverse exodus to Dubai.

For years, landlords in Sharjah have benefited from the flight to affordability where many tenants preferred to stay in the northern emirate and drive down to Dubai where rents are significantly higher. With the softening of prices in Dubai, which has blurred the rental rates between the two emirates, and the traffic congestion in the northern emirate, many families have started to relocate to Dubai. This has led to the fall in occupancy levels of houses in Sharjah.

Residential areas Al Majaz, Corniche and Mazar attract the highest annual rentals where a three-bedroom unit can be leased for a price between Dh60,000 and Dh90,000. Al Nahda, which borders Dubai, is another popular location. Here, studio units are currently rented annually at around Dh27,000 to Dh35,000, while three-bedroom houses are leased at Dh60,000 to Dh85,000.

One of the real estate projects in Sharjah which has generated a lot of enthusiasm among property buyers is Tilal City. Located near Al Dhaid Interchange, the mixed-use development has opened up 1,855 plots of land for sale. Non-Arab expats can purchase land plots on a 100-year leasehold basis, while freehold land plots are available for GCC nationals and UAE-based Arab residents.

Another much-awaited development is the Shoumous Residential Complex located in the Al Tai district. Freehold plots are offered to Arab nationals. After purchasing a plot of land within the gated community, owners can build their home according to their own style. Around 220 residential plots of different sizes are available.

Meanwhile, Al Nahda is awaiting the completion of an ambitious mixed-use project, Al Rayyan Complex, which is set to feature around 500 residential units, serviced apartments, a retail complex and a hypermarket. The residential towers are expected to be completed in the first quarter of 2016.

Handy Hints
• Rental rates in Sharjah witnessed a decline of 3 per cent in second half of year
New projects are scheduled to enter the Sharjah market in the coming years
• Al Majaz, Corniche, Mazar and Al Nahda have highest annual residential rents

Source: S. Dhar, Special to Properties
The writer is a freelancer


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