Housing rents in the UAE’s Northern Emirates remained largely flat during the third quarter after falling in the first part of the year in line with the performance of the Dubai market.
Sharjah and the other Northern Emirates, located within commuting distance to Dubai, have traditionally been seen by many cost-conscious workers as cheap locations when rents in Dubai increase. According to the property broker Asteco, rents for flats in Sharjah fell by 1 per cent during the three months to the end of September.
“The stabilisation of the market was a knock-on effect, in part, to rental rates in Dubai also balancing out,” said John Stevens, Asteco’s managing director. “As a result there was a minimal number of relocations taking place between Dubai and the Northern Emirates.”
The brokers Cluttons reported that rents in Sharjah had fallen by about 8.3 per cent year-on-year in the first quarter of this year as the slowdown in the UAE economy led to job losses and cost savings across the board, prompting Dubai landlords to reduce rents.
According to the property broker JLL, rents for flats in Dubai fell by 3 per cent in the first quarter of this year before falling another 1 per cent in the second quarter and stabilising in the third quarter.
Asteco reported that on average, rents in new developments in Sharjah ranged from Dh20,000 to Dh35,000 for a studio and Dh45,000 to Dh90,000 for a three-bedroom unit.
Rents in the upmarket Al Majaz area and Al Khan (Al Mamzar) had the largest quarterly increases, rising by an average of 2 per cent compared with the previous quarter to range from Dh25,000 to Dh35,000 for a studio, while three-bedroom apartments are available from Dh48,000 to Dh90,000.
Meanwhile, rents along the emirate’s Corniche had the biggest quarterly falls, dipping by an average of 9 per cent to start from Dh26,000 to Dh35,000 for a studio while three-bedroom apartments span from Dh60,000 to Dh95,000.
Asteco said that rents in Ajman increased by 1 per cent during the three months to the end of September this year amid an improvement in the emirate in terms of road connectivity and shops.
Rent for high-end flats in Ajman ranged from Dh22,000 to Dh38,000 for a studio, while three-bedroom flats were available from Dh42,000 to Dh72,000.
Asteco said that housing rents in Fujairah remained stable over the quarter. Rental rates typically varied from Dh23,000 to Dh28,000 for a studio and Dh45,000 to Dh60,000 for a three-bedroom flat.
lbarnard@thenational.ae
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