Normally, residents of Dubai who wish to reduce their rent might think about relocating to Sharjah or Ajman; but, due to an increase in demand, prices in these two neighboring emirates are currently rising.
According to analysts, the cost of certain one- to two-bedroom flats has increased by almost 20% since the last quarter of 2023.
According to Raif Hassan Ikkeri, founder of Eeman Properties, "the main reason residents prefer Sharjah and Ajman is due to the difference in rents from Dubai." He stated, "Rental rates in the UAE have been steadily rising in the post-Covid period, opening up new options in Sharjah and Ajman."
A and H Real Estate manager Mohammed Rayyan acknowledged the rent increases as more people move to the Northern Emirates, especially Sharjah.
"A one-bedroom apartment in well-known Sharjah neighborhoods was available by the end of 2023 for as little as Dh24,000 a year. The rent now ranges from Dh30,000 to Dh36,000, depending on the building's age, location, and amenities, according to Rayyan.
He said that their agency's majority of the smaller units are currently fully booked.
"Many residents are favouring one-bedroom apartments as they are suitable for small families," Rayyan stated. Families with four members typically seek flats with two bedrooms. Instead of returning home themselves, people who choose two-bed apartments frequently do so to accommodate their visiting parents, according to Rayyan.
Additionally, according to Rayyan, the going rate in Sharjah for a two-bedroom apartment is between Dh36,000 and Dh52,000. "Rent for a two-bedroom apartment ranged from Dh34,000 to Dh45,000 six months ago."
Top areas
The inhabitants' top picks are Al Nahda, Al Tawoun, and Al Majaz, according to experts. Because Al Nahda is so close to the Dubai bus station and has easy access to the Dubai Metro, it is very popular. Another well-liked location is Al Tawoun, which is well-known for its quick access to Dubai and hypermarkets, clinics, hospitals, and other facilities."
Fixed rent for first 3 years
According to Rayyan, people choose to reside in Sharjah because it's only a thirty-minute drive to the schools in Dubai. "Moreover, in the emirate, the rent is fixed for the first three years from the contract date, which is a significant factor for many."
Growing population major factor
Ikkeri also brought out the rising trend of rental prices in the northern Emirates. One of the main drivers of the real estate market is the nation's expanding population. Ikkeri stated, "There's a noticeable surge in the amount of visas being granted, along with a substantial increase in the number of persons entering the nation.
Impact of Ras Al Khaimah's growth
According to analysts, the demand for property in Sharjah and Ajman is also being impacted by the expanding industry in Ras Al Khaimah.
"A lot of executives in the service industry who work in RAK prefer to live in Ajman or Sharjah and drive the 45 minutes to work," Ikkeri remarked.
Investment preferences
According to experts, several visitors traveling in the nation on business often purchase villas in Ajman or Sharjah because of the more favorable prices.
Because of their larger villas and flats, end consumers who are looking to invest in real estate choose Ajman and Sharjah. For example, a built-up area of around 2500 square feet and a villa in Ajman start at about Dh1.2 million, said Ikkeri. Rowdah, Yasmeen, and Zahia are the most sought-after neighborhoods in Ajman for freehold real estate.
Experts claim that a sizable population of Westerners is relocating to the UAE because it provides better living conditions and a safer atmosphere for families, which has an immediate effect on the rental markets.
According to Ikkeri, "the rental market in Sharjah and Ajman will be impacted by the 30% increase in rents in Dubai as of early 2023."
