Rents in Ajman, Umm Al Quwain (UAQ) and Ras Al Khaimah (RAK) are almost two to three times lower than Dubai’s most affordable communities, according to a new report.
Though Asteco, a real estate consultancy, had stated earlier that rents in Dubai were falling, it said in a new report that the Northern Emirates are witnessing an increase in rents.
In its third quarter 2014 report on the Northern Emirates, the consultancy said the quarter witnessed a continuation of the positive trend of the last 12 months, with quarterly increases of two per cent in Sharjah; five per cent in RAK; four per cent in Ajman and six per cent in UAQ.
The moderate rental increase in Sharjah was cited due to a declining number of newcomers as rents in Dubai’s affordable communities either stabilised or declined.
In fact, the real estate market in Northern Emirates and Dubai is inversely correlated.
When rents in Dubai rise, people looking for affordability move to the Northern Emirates. When rents soften in Dubai they move back, to reduce their commuting time.
Average rents for studio apartments and one-bed units in Ajman range from Dh20,000 to Dh30,000 per annum (pa) and Dh25,000 to Dh40,000 pa, respectively.
Average rents for studio apartments and one-bed units in UAQ fall in the range of Dh17,000 to Dh20,000 pa and Dh18,000 to Dh25,000 pa, respectively.
Average rents for studio apartments and one-bed units in RAK is between Dh20,000 and Dh30,000 pa, and between Dh25,000 and Dh40,000 pa, respectively.
Average rent for studio units in Sharjah ranges from Dh15,000 to Dh35,000 pa, while one-bed apartments are available for Dh20,000 to Dh50,000 pa.
A studio apartment in Discovery Gardens, Dubai, is currently being leased for Dh45,000 to Dh52,000 pa, while on bed units are available for Dh60,000 to Dh72,000 pa.
In International City, rents for studios range between Dh33,000 and Dh38,000 pa and from Dh44,000 to Dh48,000 pa for one-bed units.
Asteco said, on an annual basis, rents rose by 25 per cent in Ajman and 18 to 19 per cent in Sharjah.
“As pressure on rates was witnessed in Dubai during Q3, we believe that rental rates in the Northern Emirates could be reaching their peak, as the number of relocations is reducing, leading to a stabilisation of demand levels initially and a potential reversal in the medium term,” the consultancy said.
Source : Emirates 24×7
