Demand Shifts to Sharjah and Ajman
Residents in Dubai seeking to save on rent often consider relocating to nearby emirates like Sharjah and Ajman. Recently, however, rental prices in these areas have surged by about 20% compared to the last quarter of 2023, driven by increased demand.
Rising Rental Rates
Raif Hassan Ikkeri, founder of Emaan Properties LLC, highlighted the attractiveness of Sharjah and Ajman due to lower rents compared to Dubai. He noted that rental rates across the UAE have been steadily rising post-Covid, providing new housing options in these emirates.
Cost Escalation in Sharjah
Mohammed Rayyan, manager at A and H Real Estate, confirmed the rent hikes, particularly in popular areas of Sharjah. He mentioned that the cost for one-bedroom flats has risen sharply from Dh24,000 to Dh30,000 – Dh36,000 per year, depending on location and amenities.
Preference for Apartment Sizes
Rayyan pointed out that one-bedroom apartments are favored by small families, while two-bedroom units are preferred by larger families accommodating visiting relatives. The rent for two-bedroom flats in Sharjah now ranges from Dh36,000 to Dh52,000, reflecting an increase from Dh34,000 to Dh45,000 six months ago.
Prime Residential Areas
According to experts, areas like Al Nahda, Al Tawoun, and Al Majaz are highly sought-after due to their proximity to transportation hubs and essential amenities.
Factors Influencing Choice
Rayyan mentioned that many residents choose to live in Sharjah for its close proximity to Dubai, with schools just half an hour away. Additionally, the advantage of fixed rents for the first three years from the contract date is a significant draw for many.
Population Growth and Industry Influence
The growth in population, driven by an increase in visas issued, is a major factor contributing to the real estate boom in the northern Emirates, according to Ikkeri. He also highlighted the influence of Ras Al Khaimah’s expanding industry on housing demand in Sharjah and Ajman.
Investment Opportunities
For investors and end-users alike, Ajman and Sharjah offer more affordable options compared to Dubai, with spacious villas and apartments available for purchase. This has attracted interest from both local and international buyers, with areas like Rowdah, Yasmeen, and Zahia in Ajman being particularly popular for freehold properties.
Future Rental Market Outlook
Overall, the rising rental prices in Dubai, which have increased by 30% since early 2023, are expected to have a ripple effect on the rental market in Sharjah and Ajman, further influencing housing decisions in the region.