RAK And Sharjah Lead Northern Emirates Property Revival

The property markets in the Northern Emirates have performed positively over the last 12 months, with Ras Al Khamiah and Sharjah leading the way, according to a special Cityscape Global, Northern Emirates report from leading UAE property management company, Asteco.

Residential rental rates in the Northern Emirates were directly affected by the property downturn in Dubai and experienced overall average declines of 33% compared with Q3 2008. However correlating to Dubai’s continuing upturn rental rates have now recovered by 21% on average since last year.

“The revival in property rates is particularly apparent in Ras Al Khaimah and Sharjah with both emirates pro-actively fuelling the economy and consequently their respective real estate markets,” said John Stevens, Managing Director, Asteco Property management.

In Ras Al Khaimah, rental rates are up 39% year-on-year and are now only 27% below their peak rates in Q3 2008. A two-bedroom apartment now commands AED40,000 per annum in rent.

In Sharjah, average leasing costs increased by 34% compared to a year ago and are only 36% off their 2008 highs. The best performing areas in Sharjah were Al Wahda, Al Majaz and Al Nadha, which recorded annual growth of 56%, 49% and 47% respectively. An average two-bedroom apartment on Sharjah’s popular Corniche now rents for AED52,000 per annum.

“Increasing rents across Dubai started a reverse relocation trend in Q2 this year, with budget-sensitive tenants seeking out more affordable accommodation in Sharjah especially commuter areas such as Al Nadha,” said Stevens.

The commercial sector in Sharjah has been relatively stagnant since 2010, with office rental rates 64% lower than in Q3 2008, with minimal improvements of 1% compared to last year.

Ajman witnessed increases of 19% over the last 12 months to the end of Q3. A two-bedroom flat now costs AED35,000 annually, still 31% down on Q3 2008.

It was a similar picture in Fujairah with rents increasing by 13%, but still 30% lower than the 2008 peak. A two-bedroom apartment will now achieve an annual rent of AED34,000.

There was little movement in Um Al Quwain, rates over the past year increased by a mere 2%, around 40% below their Q3 2008 rates. A two-bedroom apartment here will cost AED27,000 per annum. For more details, please visit www.asteco.com

Emirate:  Ras Al Khaimah

Date: Oct 10, 2013

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