Two-bed homes in Sharjah 50% cheaper than Dubai
Sharjah residential rents see annual decline of 1.6% in Q3: Cluttons
By Parag Deulgaonkar
Published Tuesday, December 15, 2015
Residential rents in Sharjah registered an annual decline of 1.6 per cent in the third quarter 2015 compared to the same period last year, the first time in two years, despite demand remaining strong for quality housing units, Cluttons said in Monday.
A comparison of the value table shows lease rates for two-bedroom units in Sharjah were roughly 63 per cent and 50 per cent lower than Abu Dhabi and Dubai.
The consultancy’s ‘Sharjah 2015/2016 winter property market snapshot’ reveals rents during the third quarter 2015 stagnated, recording a marginal increase of 0.3 per cent. Though, year-on-year fell by 1.6 per cent.
“This is the first time in over two years that average annual residential lease rates have contracted, but demand still remains for high quality stock and gated community living,” the consultancy added.
Faisal Durrani, Head of Research at Cluttons, stated that rising supply levels across many areas of Sharjah, coupled with price reductions in Dubai, offering a shorter commute, and increasing value for money in Ajman were starting to undermine rents.
“Well-managed buildings that are perceived to offer better quality and increased facilities still have longer waiting lists than lower quality buildings and continue to drive demand. At the same time we are seeing reduced waiting lists for what is perceived to be lower quality stock,” he said.
New communities and gated villas, the report said, have continued to outperform the wider residential market, particularly the apartment sector, with rents rising by 4.1 per cent during the first none months of 2015.
In September 2015, Cluttons said that the leasing market in Sharjah was gradually slowing down due to falling rents in Dubai and the introduction of so-called ‘high-quality accommodation’ in Ajman. The emirate recorded a 2.3 per cent dip in average rents during the second quarter.
Al Majaz was the weakest performing area in the first six months of 2015, with annual rents for three-bedroom flats falling by almost 12 per cent, with average lease rates being Dh75,000 per annum (pa). One-bedroom properties saw a four per cent dip in average rents, with annual leases averaging Dh50,000 pa. On the villa front, rents for three-bedroom properties rose by under six per cent with average annual rentals at Dh90,000.