The rental market in Sharjah and Ajman is currently experiencing a surge in demand for 1-BHK and 2-BHK apartments, leading to a significant increase in rental prices. According to industry experts and real estate executives, there has been a 20 per cent hike in rents for these units compared to the last quarter of 2023. The primary reason for this trend is the difference in rental rates from Dubai. In the post-Covid period, rental rates in the UAE have been steadily increasing, making Sharjah and Ajman more attractive options for residents.
Mohammed Rayyan, manager at A and H Real Estate, noted a shift in housing preferences among residents, with smaller units being sold out in their agency. Many residents are favoring 1-BHK apartments for small families, while 2-BHK apartments are preferred by families of four or for accommodating visiting parents from their home countries. The rental rates for these units have surged significantly over the past year, making relocation to Sharjah a concern for many individuals.
High-demand areas in Sharjah include Al Nahda, Al Tawoun, and Al Majaz, which are popular choices among residents. Al Nahda is sought after due to its proximity to the Dubai bus stand, while Al Tawoun offers convenient access to hypermarkets, clinics, hospitals, and other amenities. Additionally, the fixed rent for the first three years in Sharjah is a significant factor for many individuals considering a move to the area.
The growing population of the country is cited as a major factor contributing to the rising rentals in the northern Emirates. With a notable increase in visas being issued and more people coming into the country, the real estate industry is experiencing significant growth. The industry experts also mention the impact of Ras Al Khaimah’s growth on housing demand in Sharjah and Ajman, as many service-oriented industry executives working in RAK prefer living in the neighboring Emirates.
Investment preferences are also influencing the housing market in Sharjah and Ajman, with some individuals, especially those arriving in the country for business, opting to buy villas in these areas due to more favorable pricing compared to Dubai. End users looking to invest in properties are attracted to the spacious villas and apartments in Ajman and Sharjah. The rental market in Sharjah and Ajman is also influenced by the influx of people from Western countries seeking higher living standards and a safer environment for their families. Experts predict that the rental market in these Emirates will continue to be impacted by the rising rental rates in Dubai.
