Prices for renting and buying property in Sharjah are continuing to decline as the emirate strengthens its reputation for affordable housing, according to the latest first-half report from UAE property portal Bayut.com.
Buyers and renters in the emirate gained as prices fell in most areas compared with the second half of last year.
“Sharjah prices are at a very attractive point and present a good opportunity for investors to diversity their investment portfolio,” said Haider Ali Khan, chief executive of Bayut.
However, changes to property laws in Sharjah announced in April, which allow non-residents to own property in the emirate – may see increased interest in property sales as the year progresses.
“As the summer months roll in, we expect prices to stay stable in Sharjah through this quarter," said Mr Khan. "With more off-plan projects picking up in Sharjah, with some allowing ownership by folks from outside the GCC, this will help generate more interest and transactions going forward.”
The largest rental price decreases in the first half over the second of 2017 were in Al Nahda, where the average 1-bedroom apartment slid by 16.2 per cent, while the average sales price for a 2-bedroom apartment fell by 14.3 per cent.
Decreases in average apartment sales prices were, apart from in Al Nahda, on average between 1 per cent and 10 per cent.
For apartment rentals, in addition to declines in Al Nahda, prices also fell by 8.9 per cent for 2-beds in Al Khan.
Al Majaz was the most popular for apartment sales in H1 2018, with the average price for a 2-bed property reaching Dh741,000. Al Qasimia, which was the most popular area for apartments rentals, still saw the average rental price for a 2-bed property fall by 11 per cent to Dh33,000.
Separately, The National reported on Sunday that In Ajman the cost of buying and renting fell by up to 20 per cent in some neighbourhoods in the first half as a result of rising supply, according to data from UAE online marketplace Dubizzle.
“Across the UAE, properties are becoming more affordable resulting in a decline in the cost of living,” said Samer Abdin, general manager at Dubizzle’s property division, on Sunday.
“We are seeing an oversupply of property units in the market right now, which has created a more competitive and affordable market. Apartment sale prices in Ajman in particular have fallen at a more pronounced rate than rental prices, giving property seekers an excellent opportunity to invest in their own property."
Al Jurf and Ajman industrial area saw the largest annual decline in rents in the first six months of 2018, at 18 per cent. Al Sawan followed with a 14 per cent decrease and Emirates City dropped by 10 per cent over the period.
Apartments in Al Nuaimiya saw the biggest drop in average sales prices, at 23 per cent, according to the report, followed by Emirates City (21 per cent) and Al Mushairef (19 per cent).
“While these areas experience heavy declines, Al Sawan experienced the lowest drop in average sale price, of 10 per cent,” Dubizzle said.