Budget-conscious tenants from Dubai are moving as far afield as Ajman in search of affordable housing as even Sharjah becomes too expensive for many.
The exodus of Dubai residents is lifting rents across the northern emirates, a new report from the estate agent Asteco said yesterday.
Rents in Ajman, Sharjah’s northern neighbour, experienced the highest increase, rising by an average of 7 per cent over the three months to the end of last month to reach annual rents of Dh30,000 to Dh45,000 for an average two-bedroom apartment.
The increase means that on average, annual rents in Ajman have risen by 27 per cent from a year ago.
It also means that tenants priced out of Dubai are forced to commute to keep down costs.
In Sharjah there have been rapid rent rises in recent months, after averages rose by just 1 per cent between April and June, as landlords demanding as much as Dh80,000 for a two-bedroom apartment struggled to find tenants.
“Ajman is now taking over the mantle as the relocation destination for budget-conscious residents as landlords in Sharjah ask higher than average rental rates, particularly for brand-new buildings in popular locations,” said the Asteco managing director John Stevens.
Local estate agents renting apartments on Ajman’s Corniche have benefited from the trend. Faizan Khan, who makes a living renting out flats in central Ajman, says his business started to pick up last winter.
“Lots of new people are coming to Ajman, especially from Dubai, because the rents are too much in the other cities. We are seeing lots of business,” said Mr Khan.
“For a one-bedroom apartment in a good area like the Corniche you will have to pay between Dh40,000 and Dh45,000 a year,” he said. “Six months ago that would have been more like Dh30,000 to Dh35,000, so you can see that in the last six months the price has gone up by Dh10,000.”
Rents in Dubai’s eastern neighbour Fujairah have risen by 2 per cent over the past three months to stand at Dh30,000 to Dh50,000 for a two-bedroom flat, Asteco said as the overspill from Dubai continued. Average Fujairah rents are now 15 per cent higher than they were a year ago, Asteco added.
And in the UAE’s most northerly emirate, Ras Al Khaimah, rents for homes in new master planned communities rose 2 per cent over the quarter to between Dh50,000 and Dh75,000 to stand 23 per cent higher than they had been a year ago.
Last week Asteco reported that Dubai rents, which had been spiralling over previous quarters, slowed slightly to register an increase of just 6 per cent during the quarter.
The agent said that stabilising rents in Dubai had led to a reduction in the number of tenants looking to move to Sharjah, while many of the most cost-conscious renters were now looking farther afield.
“Sharjah in particular has benefited in recent months due to aggressive rental rate increases in neighbouring Dubai, but this quarter saw a degree of stabilisation in Dubai’s more affordable communities, which led to a reduction in the number of residents choosing to relocate,” Mr Stevens added.
lbarnard@thenational.ae
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