Sharjah — Apartments continued to see strong demand in Sharjah as rents rose by 35 per cent in the 12 months to the end of third quarter as the emirate continued to face upward pressure in rents on limited supply pipeline, real estate consultancy Cluttons said.
In the first nine months, residential rents in Sharjah surged 23 per cent due to a limited supply pipeline and comparative affordability to Dubai, the report said. In the third quarter, rents rose 5.3 per cent, marginally lower than 5.7 per cent year-on-year growth recorded in the second quarter, it said.
Tenant demand in the residential market was found to be largely fuelled by reverse migration from Dubai and Dubai firms increasingly turning to Sharjah for bulk staff housing, Cluttons said in its Winter 2014 Sharjah Residential Market Outlook report.
In the villa market, the rate of acceleration of rents slowed to just under seven per cent during the third quarter, from 8.2 per cent in the second quarter.
Cluttons’ international research and business development manager, Faisal Durrani, said the dip in the pace of rising villa rents was not a reflection of weakening demand, but instead points to an emerging affordability threshold, as average household incomes are failing to keep up with the fast paced growth in rents… see more