Sharjah - Arabstoday
Apartment rents in Sharjah declined by an average of five percent in the third quarter of this year, Asteco said in a report published on Sunday. Villa rental values also fell by four percent on average as low demand and tenants relocating to newer buildings with better facilities took their toll, the real estate consultants said. \"With a combination of summer holidays and Ramadan which culminated in low demand putting pressure on landlords, tenants relocated for better rents and/or terms, causing apartment leasing rates in Sharjah to fall by five percent on average and up to 10 percent in the case of Abu Shghara,\" said Elaine Jones, CEO, Asteco Property Management. The ripple effect of relocation and affordability also prompted tenant migration to the neighbouring emirate of Dubai, she said, adding that this trend was consistent with the decline in rental rates in certain areas of Dubai. The Asteco report said landlords are increasingly offering incentives to attract or retain tenants, including 14-month lease terms, with 12 installments and no commission payments. Asteco also said that office rents in Sharjah dropped by an average of six percent in the third quarter of the year, with some tenants opting to relocate to Dubai where property and registration paperwork is considerably less than in Sharjah. In the northern emirates of Ajman, Fujairah, Ras Al Khaimah and Umm Al Quwain, overall rates remained stable, the report added. Asteco said rental rates particularly in Fujairah and Ras Al Khaimah will come under renewed pressure as new residential developments are now in the process of being handed over. \"This will have an adverse effect on rates in the near term especially in the more mature projects,\" said the report.