Dubai’s rising rents have sparked a reverse relocation trend to Sharjah and boosted the residential rental market of the latter, said an Asteco property report.
Sharjah has recorded a 16 per cent rise in rental rates over the last 12 months with budget-conscious tenants seeking more affordable homes in the emirate.
Apartments in popular commuter areas like Al Majaz, Al Nahda and Al Qasimiah have witnessed average rental increases of between 16-27 per cent since Q2 2012. The trend is expected to continue in the short to medium term.
Al Nahda apartments recorded the highest demand with rents jumping by 27 per cent followed by Al Majaz area, which recorded a 24 per cent increase. The busy Al Wahda area saw a rent hike of 22 per cent.
Villa rental increases were highly location-dependent as villas in Al Khan surged 33 per cent year-on-year, while Sharqan and Al Quz recorded only a two per cent increase.
“The short to mid-term outlook for the Sharjah property market is positive, and this sustained demand is being carefully monitored by the government as it looks at future economic stimuli, with infrastructure and construction project initiatives leading the agenda,” said John Stevens, managing director of Asteco Property Management.
The other northern emirates of Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah also saw signs of revival with year-on-year rental increases of ten per cent, eight per cent, two per cent and five per cent respectively.