New supply helps speed up Sharjah’s rental dips

 Dubai residents chasing a rental bargain in Sharjah or Ajman do have a few options to choose from — but there is no guarantee the favourable circumstances will remain through 2017.

Sharjah’s property rental market seems to have acutely felt the impact of substantial new supply being delivered in the last two years. And some of these landlords have been offering rents at or slightly lower than the market average, especially on the high-end ones.

“In terms of the market’s performance, the softening of (rental) values has been across the board,” said Suzanne Eveleigh, who heads Cluttons’ Sharjah office. “But when you look at property types, small such as one-bedroom flats and three-bedroom villas have been more resilient than larger properties.

“Due to current economic conditions, the leasing market in Sharjah is very much price sensitive at the moment. For a past number of years we witnessed tenants seeking units with additional facilities on-site.

“But in recent months we’ve seen a shift towards finding the best value for money and foregoing the allure of outdoor swimming pools, gyms and other such facilities for apartments they perceive to offer value for money.

Therefore, the more reasonably priced residential towers are the best performing in the market at present.”

Chasing value is also one reason why Ajman’s residential leasing market has been quite resilient even with the economic headwinds leaving an impact elsewhere in the UAE property market. More high-rises being delivered also helped decide it for residents wishing to relocate from costlier rental neighbourhoods in Sharjah, for instance.

source : gulfnews