Sharjah rents increased 4.5 per cent in the first quarter of 2014, 19 per cent higher than the same period the previous year, according to a report.
Apartment rates increased nine per cent in the first quarter after seeing a 20 per cent increase last year. Villas have also recorded an increase, states the report, by as much as 13 per cent during the first quarter of 2014.
The rise in villa rates in Sharjah was fuelled by many factors including the rise in demand for villa communities, population increase driven by the emirate’s growing aviation sector, rising number of schools, in addition to the ease of access to Dubai via Emirates road, states the report.
The turmoil in the Arab region has caused the influx of visitors to the emirate, which in turn increased the demand for properties. Most of them are drawn to its Islamic heritage and cheaper rental rates, said the report by Cluttons.
However, residents moving to Sharjah from within the UAE usually come from the emirate of Dubai seeking cheaper properties.
The area that saw the most increase was the Al Qassimiya area where rents went up 36 per cent compared to the same period last year. The Al Nahda area saw a 12.5 per cent increase while the Al Qassimiya reached levels just below that at 12.2 per cent.
The demand for properties will continue to rise due to the recent announcement of a seven per cent increase in Sharjah’s budget for 2014/15, which will see up to half of the Dhs15 billion budget allocated to developing the economy.