In Fujairah, high profits are landlords’ response to rising demand

FUJAIRAH // New housing projects are needed to solve the shortage of residential units and high rents in the emirate, say real estate experts.

Thirty eight residential building permits were issued by Fujairah Municipality last year, which do not match demand for houses, they said. “I received about 20 demands from different clients each day requesting apartments of different sizes and requirements, but the market’s not covering their needs. The size of the apartments is small for the price and the demand is exceeding the supply,” said Jamal Shuraih, director of Al Bayader real estate agency.

“Only four new residential buildings have been added to the market this year and investors are concentrating on profit instead of quality. The prices are getting higher, compared with wages in the emirate.

“People are looking for an affordable rental price with suitable space but in the current situation its impossible to find such a thing,” he said.

Mr Shuraih, who has been working for almost 35 years in real estate, said the shortage of residential apartments has caused a 15 per cent rise in rents.

“Four new residential buildings have been added to the market this year,” he said.

“The current rental price of a two-bedroom apartment this year is Dh48,000, while the three-bedroom apartment reached Dh60,000, with a 15 per cent increase. The huge economic growth that is happening in the emirate has affected everything, especially rents.

“Therefore there should be some kind of encouragement for investors to invest in the real estate market to cover the shortage and provide affordable rents.”

Suhail Abdulqader, a 32-year-old estate agent working with Al Mustakbal Agency, said that the current available apartments are high in rent and poor in quality and space.

“People are looking for apartments with at least the minimum services, like central air conditioning and a decent space to live with their family,” said Mr Abdulqader.