The rental market in the United Arab Emirates (UAE)’s Sharjah is changing dramatically. Experts have forecasted that rental prices will remain steep in the city over the next two years.
The Emirates has attracted more residents than its neighbouring city of Dubai due to its relatively affordable housing options.
The rental situation in Sharjah is dynamic, the rent hikes vary from 18 percent to 25 percent on renewals in the market. This surge is driven by multiple factors including a growing population that reached 1.8 million in 2022 and a large number of people immigrating from other Emirates.
Market dynamics
The market involving the renting of apartments is highly fluid, and several significant trends can be noticed. Recent statistics revealed that Dubai residents are relocating to Sharjah to escape tighter rental costs.
Real estate agents reported that approximately 10 percent of the recent clients were people who had moved out of Dubai for more affordable housing. This migration has created a robust demand that has enabled landlords to charge high prices in the market.
Rental price projections
As predicted by the market, the rental prices are likely to rise further. A detailed projection shows potential increases across various property types.
| Property Type | Current Rent p.a. | Projected Rent by 2025 |
|---|
| Studio Apartment | AED 25,000 | AED 30,000 |
| 2-Bed Apartment | AED 60,000 | AED 75,000 |
| 3-Bed Villa | AED 140,000 | AED 180,000 |
Al Suwaidi, chairman of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry (SCCI) said, “Rents are rising in Sharjah. I believe the market will stay high for up to two years. In Sharjah, rents see a minimal increase of 5 to 10 per cent. People are coming for the sake of living here, hence, contributing to the whole cycle of the economy,” reported by Khaleej Times.
On the other hand, the CEO of Alef Group, Issa Ataya said that the rising rents are “good for investors”.
Although there are numerous hurdles concerning tenants, Sharjah continues to position itself as an affordable alternative location to Dubai.
