The rental market in Sharjah and Ajman is experiencing a surge in demand for 1-BHK and 2-BHK apartments, leading to a notable increase in rental prices. Industry experts and real estate executives report a 20 per cent hike in rents for these units compared to the last quarter of 2023.
“The primary reason residents prefer Sharjah and Ajman is due to the difference in rents from Dubai,” said Raif Hassan Ikkeri, founder, Eeman Properties. “In the post-covid period, rental rates in the UAE have been steadily increasing, opening new options in Sharjah and Ajman.”
Mohammed Rayyan, manager at A and H Real Estate, indicated a shift in housing preferences among residents as most of the smaller units are sold out in their agency.
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“Many residents are favouring 1-BHK apartments as they are suitable for small families. “Two-bedroom apartments are generally preferred by families of four. Those opting for 2-BHK units often do so to accommodate visiting parents from their home countries, rather than traveling back themselves,” said Rayyan.
People relocating to Sharjah are concerned about the increasing rentals. “By the end of 2023, a 1-BHK flat was available starting at Dh24,000 per year in prominent areas of Sharjah. Currently, the rent has surged, starting from Dh30,000 to Dh36,000 depending on the location, age of the building, and amenities,” said Rayyan.
Rayyan also said the current market price for a 2-BHK flat ranges from Dh 36,000 to Dh 52,000 in Sharjah. “Six months ago, the rent for a 2-BHK flat started at Dh34,000 going all the way up to Dh45,000,” said Rayyan.
High-demand areas
According to experts, Al Nahda, Al Tawoun, and Al Majaz are the preferred choices of the residents. “Al Nahda is highly sought-after due to its proximity to the Dubai bus stand and easy access to the Dubai Metro. Al Tawoun is another preferred area, known for its convenient access to hypermarkets, clinics, hospitals, and other amenities, and easy exit to Dubai,”
Fixed rent for first 3 years
“People prefer to live in Sharjah because the schools in Dubai are just half an hour away. Moreover, in Sharjah, the rent is fixed for the first three years from the contract date, which is a significant factor for many,” said Rayyan.
Growing population major factor
Ikkeri mentioned additional trends of rising rentals in the northern Emirates. “The growing population of the country is one of the major factors contributing to the real estate industry. The number of people coming into the country is growing significantly, with a notable increase in visas being issued,” said Ikkeri.
Impact of Ras Al Khaimah’s growth
The growing industry in Ras Al Khaimah is also influencing housing demand in Sharjah and Ajman, experts said.
“Many service-oriented industry executives working in RAK prefer living in Ajman and Sharjah and commuting to work, which is about a 45-minute drive,” said Ikkeri.
Investment preferences
Experts indicate that some people arriving in the country for business tend to buy villas in Ajman or Sharjah due to more favourable pricing. “End users looking to invest in properties opt for Ajman and Sharjah for their more spacious villas or apartments. For instance, a villa in Ajman starts at approximately Dh1.2 million, with a built-up area of over 2500 sq ft,” explained Ikkeri. “The most popular areas for freehold properties in Ajman are Rowdah, Yasmeen, and Zahia,” added Ikkeri.
According to experts, a notable number of people from Western countries are moving to the UAE, which offers higher living standards and a safer environment for families and it directly impacts the rental markets. “The rents in Dubai have already risen by 30 per cent compared to early 2023, which will have a ripple effect on the rental market in Sharjah and Ajman,” said Ikkeri.