The trend for Dubai residents to search for more affordable accommodation in neighbouring Northern Emirates appears to be slowing down, according to a new report by Asteco. The real estate consultants said that a slowdown in Dubai’s market is resulting in a softening in demand for competitively-priced residential rental units in the Northern Emirates.
Nevertheless, Asteco said the third quarter of 2014 witnessed a prolongation of the positive trend seen over the last 12 months in the Northern Emirates, with quarter-on-quarter increases of 2 percent in Sharjah, 5 percent in Ras Al Khaimah, 4 percent in Ajman and 6 percent in Umm Al Quwain. “Real estate market values in Sharjah and the other Northern Emirates are largely dictated by what is happening in neighbouring Dubai, and with rental rates in some of its more affordable communities softening further still in Q3, this inevitably has a ripple effect across the Northern Emirates,” said John Stevens, managing director, Asteco.
“This is an indicator therefore that rental rates in the Northern Emirates could be reaching their peak, with the distinct possibility of a slowdown or even reversal in the number of relocations in the medium term as residents opt to return to Dubai to avoid battling the daily commuter grind,” he added… see more