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Cluttons Middle East: Cost Effective Consumers Still Prefer Sharjah Over Dubai |
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· Sharjah showing signs of maturity and stability with gradual flow of supply to the market Cluttons also understand that the future of Sharjah’s real estate sector, is to a certain extent, somewhat linked to what happens in the Dubai market, as any further price drops over the next year in Dubai will inevitably have a knock on effect in Sharjah due the strong relationship between the two markets. That said, it is unlikely occupancy levels will be affected as price conscious consumers still prefer Sharjah over Dubai and that the growth of the business sector within the Emirate is generating more locally employed residents. Averagely 1 & 2 bedroom flats now rent for 25,000 and 35,000 respectively. Such rents have remained unchanged for the best part of the past six months. Interestingly Cluttons have noted that the Sharjah market, compared with some of the other Emirates, is now showing signs of more maturity and stability, with the rate of supply onto the market showing signs of being more gradual, which in recent months has helped maintain some stability in rents. Cluttons anticipate that demand will rise over the course of the next year in areas where newer more modern towers are being developed. These towers offer communal facilities and central air conditioning, which Cluttons note that tenants now demand. Such areas include; Al Majaz, Qassimiya, Al Khan and Al Nahda. With tenant movement towards such newer properties, Cluttons anticipate that areas like Rolla, Abu Tine and Al Nabba’a will struggle to maintiain high occupancy levels.
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