Strong growth in the UAE economy and rising rents in neighbouring Dubai have boosted demand for residential and commercial property in Sharjah, according to a report by international real estate consultancy Cluttons. The report stated that average residential rental costs climbed by 4.5 per cent during the first quarter, leaving them 19 per cent higher than this time last year, further building on a 3.4 per cent increase in the last quarter of 2013.
“The strong growth in villa rates has been catalysed by rising demand for villa communities, particularly along the Sharjah Airport/Maliha Road corridor,” said Steve Morgan, Cluttons Middle East chief executive. “This is being fuelled by a rising population, which in turn is being driven by the emirate’s expanding aviation sector, a growing number of international schools and the proximity to Sharjah International Airport.”
Sharjah International Airport has registered strong growth, with passenger traffic increasing by 8 percent during the first three months of this year compared with Q1 2013. Meanwhile, Sharjah’s economy continues to drive demand for property. The emirate awarded $2.4 billion of construction projects during 2013 and is expected to award up to AED 11 billion (US$3 billion) of projects by the end of 2014. S&P recently announced Sharjah’s first ever sovereign credit rating as ‘A/A-1′ with a Stable Outlook, underscoring the solid fundamentals of the emirate’s economy.
“Developers are also keen to capitalise on this strong demand and we are recording a substantial rise in the number of feasibility studies requested for master planned residential communities in this area,” said Morgan. “Not only does the Maliha Road corridor provide easy access into Dubai, but the mushrooming of these new lifestyle destinations will start to put Sharjah’s residential offerings on par with Dubai and Abu Dhabi, albeit on a smaller scale.”
Cluttons expects levels of real estate activity in both the residential and commercial markets across Sharjah emirate to continue to increase.
Source: Cluttons, news media