The availability of more affordable housing in Dubai is reversing a recent trend for people to move to Sharjah and Ajman in search of cheaper rents.
According to Asteco’s latest Q2 report for the Northern Emirates, rents in Sharjah and Ajman fell by 3 per cent during the quarter, prompted by an increase in vacancy levels as new supply came onto the market and more people found affordable rents in Dubai.
Rents for a two-bed apartment on Sharjah’s Corniche range between Dh48,000-80,000 per year, while in Ajman a two-bed property would cost between Dh32,000-40,000 per year.
The market for property sales to non-GCC nationals has opened up in Sharjah in recent months, but apart from the Tilal City development “few properties have actually been sold due to the high asking prices,” according to Asteco’s managing director, John Stevens.
He said that the lack of activity in terms of property purchases in Sharjah was due to the fact that buyers had been expecting to pick up properties more cheaply, and a wave of recent affordable project launches in Dubai had “diverted prospective buyer interest”.
“Where Sharjah is also losing out is that Dubai’s more established real estate market has more transparent, pro-buyer legislation in place,” said Mr Stevens.
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