Demand is increasing,occupancy levels are high but the available new stock is limited.
Sharjah landlords are once again benefiting from the rising residential rents in Dubai which has led to the influx of people being priced out of the rental market in that emirate. Demand is increasing and occupancy levels are high.
The recent launch in the market of the Arenco golden sands Tower in Al Nahda proves that the residential market is once again heating up and rents are moving rapidly upwards
Asking rent of DH 41,000 for a one bedroom flat with split A/C have mot been seen in Sharjah for several years. This will come as a shock to tenants looking to move.Add to this fact that the owners are only prepared to accept a one-cheque annual payment and want 20percent of the annual rent as security deposit.This is a different marketing strategy altogether. Of course, this is only one tower and whilst this does not necessarily set the market rate, it represents a significant shift in the market.
The tower is new and an appealing prospect for tenants, the location is convenient and is offers a high standard of finishing and facilities. Compare this is to current average rents for a medium quality one-bedroom flat in that location which fall around Dh30,000 to Dh32,000 per year.
Add to this increased demand is the fact that very few new buildings are currently ready for launch in the Sharjah market as new building construction projects were stalled during the economic downturn.
Private landlords either did not start projects or put things on hold so the available new stock is limited.
Real estate in sharjah for rent
The Sharjah municipality still offers tenants a protection period for three years from the start of a new lease, but with rates then moving to market rate on renewal on the fourth year tenants could very well get a shock when they are told what the new rent might be.
This is probably going to lead to an increase in disputes between tenants and landlords via the rental committee hearings within the municipality . This lengthy process could become an even more laborious process for both parties if the number of cases increases.
Unfortunately there is no relief in sight yet for tenants who will be paying more for their homes very shortly.
Real estate in sharjah for rent
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