Dubai: Some landlords are circumventing the rent law in Sharjah, which spiked rents by up to 33-per cent spike in the emirate in 2013, according to a leading real estate service firm.
“Our research shows that the rental law that was created to protect tenants from steep annual rent increases, is being circumvented by some landlords asking for additional fees for maintenance and extra parking spaces, to compensate for the three-year rent freeze stipulated in the rent law,” said John Stevens, Managing Director Asteco.
The report covered the Northern Emirates Q4 2013.
Asteco, a 29-year-old firm based in Dubai, said rents in all Northern Emirates covered in the fourth-quarter survey, jumped in 2013.
Ajman and Ras Al Khaimah climb 23 per cent and 18 per cent, respectively, year-on-year.
“The residential leasing market in the Northern Emirates continues to follow the upward trend witnessed throughout 2013, which was particularly apparent in Sharjah, Ajman and Ras Al Khaimah (RAK) where apartment rental rates, year-on-year, increased by 33 per cent, 23 per cent and 18 per centrespectively,” the report stated.
Asteco offers independent market analysis, design development consultancy and valuation services, sales and leasing services, as well as asset and property management services.
Premium for popular areas
Apartment rental rates in Sharjah rose nearly 38 per cent in popular areas such as Al Majaz, Al Qasimiah, Al Nahda and Al Wahda last year. Furthermore, rental rates throughout Sharjah increased, on average, by 8 per cent in the last quarter alone.
Sharjah’s popular Corniche is still one of the most desirable areas; a two-bedroom apartment there now rents for up to Dh70,000 per annum.
Sharjah Holding is currently developing an integrated mixed-use community known as Al Zahia and will include a range of villas, apartments,
and commercial units, which will be a valuable addition to supply. On the back of increased property prices in Dubai, it is expected that
more Arab expatriates will either choose to occupy or invest in Al Zahia.
Elsewhere in the Northern Emirates, RAK, Ajman and Fujairah also witnessed fourth quarter growth of 6 per cent, 6 per cent and 5 per cent respectively. The annual
rent for a two-bedroom apartment in RAK is now up to Dh50,000 per annum, meanwhile the cost of a similar property in either Fujairah or
Ajman is now up to Dh45,000 per annum.
The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates showing an increase of 1 per cent since Q4 2012, and rates unchanged in the final quarter of 2013.
