Residential apartment rents across Sharjah increased 33 per cent year-on-year in the fourth quarter of 2013 (Q4 2013), according to a new report by Asteco.
Rents in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda rose nearly 38 per cent in Q4 2013 compared to the corresponding period in 2012.
The report found that rental rates in the emirate rose by eight per cent on average in the last quarter.
The Corniche area emerged as the emirate’s most popular destination among residents, with a two-bedroom apartment being rented at Dhs70,000 per annum.
Sharjah’s rents have been rising since the first quarter of 2013 as residents from Dubai flocked to the city in search of affordable homes.
Rents have continued to surge despite a number of laws regulating the sector.
“Our research shows that the rental law that was created to protect tenants from steep annual rent increases, is being circumvented by some landlords asking for additional fees for maintenance and extra parking spaces, to compensate for the three-year rent freeze stipulated in the rent law,” said John Stevens, managing director Asteco.
However, an additional supply of residential units coming into the market might help in stabilising rents, said the report. Sharjah Holding, a government-owned real estate developer, is currently building an integrated mixed-use community known as Al Zahia, which will include a range of villas, apartments, and commercial units.
Asteco also found that other northern emirates recorded a rise in rents in 2013. Apartment rents in Ajman and Ras al Khaimah rose 28 per cent and 18 per cent respectively.
Rents in Ras Al Khaimah, Ajman and Fujairah also showed a strong quarter-to-quarter growth of around six per cent, the report said.