The rental market in Sharjah is steadily improving as the UAE economy continues to grow.
- Sharjah’s property market has shown improvements this year
- One bedroom apartments now rent for up to AED 41,000 per year
- People priced out of Dubai are heading to Sharjah for cheaper rents
The property lettings market in Sharjah, the United Arab Emirates (UAE), is nearing its real estate peak in 2007.
Property specialist Cluttons reported there has been improvement in the rental sector in the north UAE region.
It used rental prices of the Arenco Golden Sands Tower in Al Nahda, Sharjah, as an example, revealing one bedroom units in the building are now AED 41,000 (£7,313) per year, which is significantly higher than fees in the area over the last few years.
Typical one-bedroom flats in Sharjah are marketed at between AED 30,000 and AED 32,000 per year.
Associate Director at Cluttos in Sharjah Shane Breen said: “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.”
People who are keen to live in the UAE but cannot afford Dubai property prices are increasingly looking at Sharjah as a place to live.
Cluttons predicted the residential market will also improve in Sharjah, as the economy in the area continues to grow. It anticipated rents for apartments and villas will maintain a steady increase over the next six months.
Indeed, businesses in Dubai also think the economy in the UAE will improve this year, with the Department of Economic Development recently revealing 86% of businesses are positive about sales and profits for the second quarter of 2013.