Sharjah residential property rents increased 23 per cent during the first nine months of 2014, according to Cluttons. The real estate consultancy credited ongoing reverse migration from neighbouring Dubai and the rapid expansion of Air Arabia as key factors driving the increase, combined with a limited supply of residential property.
Apartment rental prices in the emirate surged 35 per cent in the 12 months ending October 2014, compared with a 15 percent during the previous 12 month period. Strong tenant demand is fuelling rental growth across the city and, whilst there is an expanding pipeline of new property projects, supply is likely to be limited in the near term. Sharjah rental rates are generally much more competitive than equivalent rates in Dubai and Abu Dhabi.
Meanwhile, property developers continue to launch new projects to in Sharjah’s growing real estate sector. Sharjah real estate developer Al Thuriah has just completed three residential towers on the Dubai-Sharjah border and announced the construction of two further towers in the same complex, due for completion in May 2016 and May 2017.
Earlier this year, Dubai-based Majid Al Futtaim Properties handed over the first phase of the AED 5 billion ($1.36b) Al Zahia residential development on the outskirts of Sharjah city. In November, Sharjah’s Tilal Properties announced a 25 million square feet mixed-use community that will provide high-quality, affordable housing for 65,000 residents in apartments, villas and townhouses. The first three zones of the development are expected to be completed by December 2016.
New property regulations introduced this year, allow the sale of some property categories to UAE residents providing a new dynamic to Shrajah’s real estate market. The highly buoyant real estate market is also supported by Sharjah’s fast growing economy, which experienced 8 percent growth in 2013.
Source: Cluttons, media