(MENAFN - Khaleej Times) Average residential rents according to cluttons climbed by 4.
the strong growth of the uae economy has also been mirrored at the emirate level in sharjah and this has boosted demand in both the residential and commercial property markets in the emirate international real estate consultancy cluttons revealed in its latest report on tuesday.
rising rents in neighbouring dubai an influx of residents from other parts of the middle east as well as renewed economic activity and job creation in sharjah altogether making the emirate an attractive place for tenants according to the spring 2014 residential market outlook report by cluttons.
average residential rents according to cluttons climbed by 4.5 per cent during the first quarter of 2014 leaving them 19 per cent higher than this time last year further building on a 3.4 per cent increase in q4 2013. average rents in al qassimiya have seen the strongest gains over the past 12 months with rents now standing 36 per cent up on q1 2013. villas on the other hand have registered a 13 per cent rise in rents in the first quarter which compares to a 25 per cent increase throughout 2013. “the strong growth in villa rates has been catalysed by rising demand for villa communities particularly along the sharjah airport/maliha road corridor. 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” cluttons middle east chief executive steve morgan said in a statement.
the report also reveals that the current political instability across parts of the region has caused an influx of people setting up home in sharjah due to largely affordable rents and its rich islamic heritage. the report points to these expatriates being flush with ‘refugee capital’ which is finding its way into sharjah’s off-plan residential sales market. this has in turn encouraged some developers to return to the sales market.
although limited to a small number of instances residential towers in locations perceived to be prime have been sold entirely off-plan with capital values hovering around the dh400 psf mark. elsewhere in the emirate’s real estate landscape the overarching improvement in the uae’s economic performance is also manifesting itself in the commercial market in the form of rising levels of occupier activity with sharjah also clearly benefiting from the economic buoyancy according to cluttons spring 2014 sharjah commercial market outlook report.
demand for office space however remains centred on smaller units in the region of 1000sqf to 1500sqf. despite the slight upturn in requirements office rents have remained relatively flat. that said prime areas of al majaz have seen a slip in rates and this has been predominately a result of greater supply and reduced demand from larger international occupiers.
morgan added: “some landlords with large shell and core space are moving quickly to capitalise on demand by carrying out partial fit outs in a bid to take advantage of market conditions and lease space as smaller units. furthermore where space is urgently required we have seen a few instances of residential-office conversions take place with previously abandoned residential schemes being transformed into office space.”