UAE: Rents in Sharjah likely to remain high for the next 2 years
Sharjah rents will be high for the next two years, as new residents come into the emirate. According to experts, rentals are 5–10 per cent higher now, although it is less than in other emirates.
“Rents are rising in Sharjah. I think the market will stay high for 2 years. Rentals in Sharjah rise by a very small amount of 5 to 10 per cent,’ said Saeed Ghanem Al Suwaidi, chairperson of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry (SCCI).
The second reason for the rent increases is Sharjah’s population, which has seen its mirroring in the UAE. Sharjah Census 2022: Sharjah had 1.8 million inhabitants compared to 1.4 million in 2015. Its population has increased in the 2019 post-pandemic year as the UAE’s economy rebounds robustly from Covid-19.
Even further generating this demand, Sharjah finally permitted foreign freeholders at the end of 2022, which also helped inflate the local real estate market. And the addition of various residential and mixed-use developments introduced by major local developers like Arada, Alef Group, and Shurooq to name a few, gives more choice for both landlords and tenants.
According to the real estate consultancy Asteco, Sharjah has the top positions in the northern emirates for new supply and launches.
As of Q3 2024, Sharjah rents – which start from Dh12,000 for a studio and go up to Dh100,000 for a three-bedroom apartment – have gone up by three per cent quarter-on-quarter and 16-19 per cent year-on-year. The higher rents are "good for investors," Issa Ataya, CEO of Alef Group, said.
"With rising demand from investors and end-users, the rent is going up."" They are coming because they want to live here, and this goes to all the economy loop," he said.
Comments