Dubai rent rises spur Sharjah property market revival.
A new report by real estate consultant Cluttons finds that rates are rising fast - ironically partly because of higher rents in Dubai.
The report says: "Landlords in the emirate are once again benefiting from the rising residential rents in Dubai and an influx of people who are being priced out of the market accordingly."
The firm said that the recent launch of a new apartment building in Sharjah indicated that rents are close to rates last seen in 2007.
The new Arenco Golden Sands Tower in the Al Nahda area of the emirate is marketing one-bedroom apartments for Dhs41,000 a year.
"Whilst this tower doesn't necessarily set the market rate," the firm noted, with other properties in the area available for about Dhs32,000, it nevertheless "represents a significant shift in the market".
In a further challenge to those seeking new accommodation, landlords in the emirate are "tightening up on their terms", Cluttons adds - accepting only a single cheque to cover a year's rent and even asking for an additional 20 per cent of the annual rate as a security deposit.
Sharjah is viewed as the most suitable alternative to those finding themselves out-priced by rising rents in Dubai, and demand is outstripping supply for the first time since the global financial crisis," said Shane Breen, the firm's associate director in Sharjah.
Cluttons expects to see the residential market strengthen even further and "rents for both apartments and villas to continue rising for the next six months".
2013 Al Sidra Media LLC
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|Publication:||7 Days (Dubai, United Arab Emirates)|
|Date:||May 28, 2013|
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