Real estate company officials stated that the rental values ​​in Sharjah witnessed a decline between 10 and 15% in November 2019, compared to their prices during November 2018.

They pointed out that the declines have taken place gradually since the last quarter of last year, and have increased in frequency with the support of internal movements of tenants, whether from the city center of Sharjah to areas such as "Al Nahda" and "cooperation", or with the move to new buildings that provide free air conditioning service, or facilities Social, such as sports clubs and parking lots, pointing out that the interior and adjacent areas of Ajman were the most declining, while stability is expected early next year.

Rental values

In detail, Sufian Al Salamat, CEO of Al Soom Real Estate Company, said that the rental values ​​of housing units in different areas in Sharjah witnessed different declines since November 2018 until the end of November 2019, with rates exceeding 15%, pointing out that the largest percentage of declines were concentrated in Downtown Sharjah and adjacent areas to Ajman.

He added that the rental value of the apartment consisting of a room and a lounge in the “Al Qasimiya” region fell from 32 thousand dirhams in November last year, to 26 thousand dirhams in November 2019, while the company reduced the price of renting the two-room apartment in the “Cooperation” area from 36 thousand AED to 32 thousand dirhams now.

Al-Salamat assured that the high frequency of transfers for tenants from the city of Sharjah to its outskirts near Dubai contributed to reducing the severity of the decline in areas such as "Al Nahda", to record the rental value of the two-bedroom apartment in which 34 thousand dirhams occurred in November 2019, compared to 38 thousand dirhams in November 2018.

He pointed out that the internal movements of tenants and the increase in demand for new units, or that provide air conditioning for free, support the decline in the real estate market, expecting that the market will witness stability at the end of this year and the beginning of next year.

Positive correction

For his part, the director of the «W Capital Real Estate Group», Walid Al-Zarouni, said that the rental values ​​of residential units in Sharjah witnessed a variation in the decline since October 2018, pointing out that the average decreases exceed 15%.

Al-Zarouni added: «The decline can be described as a positive rental correction, which is due to the rates of supply and demand in the markets, and also comes enhanced by the activity of internal movements of tenants, as with the beginning of gradual price declines, a number of tenants preferred to move to areas near Dubai rather than the central regions The city of Sharjah, or adjacent to Ajman, which in turn led to the enhancement of rental declines in those areas.

He stressed that the move of some tenants to Ajman or Dubai also contributed to some of the retreat operations, indicating that the movement of the tenants was largely focused on the demand for modern buildings, or that provide facilities such as sports clubs and free parking, in addition to the buildings that provide stimulating offers, such as months Freebies, no commission, and payment facilities. He explained that the buildings that provide added value to the tenants, such as free electricity for air conditioning, witnessed great demand rates, and therefore were among the least in declining rental values.

Al-Zarouni considered that the response of the markets to the decline rates in a similar way to other regions in the state is considered a positive and health issue in the real estate sector in Sharjah, which enhances the attractiveness of the sector to tenants, especially from the families that were the beneficiaries of the movement of movements in the Emirate of Sharjah during the recent period.

Varying proportions

In the same vein, the director of "Alwaleed Real Estate Company", Mohamed Turki, said that the rental values ​​in Sharjah have decreased since November 2018 in varying proportions, but they were lower in areas with high demand, such as "cooperation", "Al Khan" and "Al Nahda" , Especially in buildings that allow free air conditioning.

He estimated the decline rates in those areas between 5 and 10%, compared to higher rates in the areas of central Sharjah or adjacent to Ajman, stressing that the indicators of residential rents are currently heading towards stability at the end of this year or the beginning of next year.

He pointed out that his company reduced the rent of two-bedroom apartments from 50,000 dirhams in the cooperation area, to 47,000 dirhams at the end of last October.

Relative stability

The leasing official at Al-Rayhan Real Estate Company, Mr. Mohamed, said that the decline in rental values ​​in Sharjah began gradually at the end of last year, and varied according to the more and less demanding areas.

He explained that the downtown areas witnessed a further decline compared to areas such as "Al Khan" and "Al Taawun".

He revealed that the company reduced rental values ​​between 1000 and 2000 dirhams for apartments consisting of two bedrooms and a hall in the «Al Khan» area since the beginning of this year.

He pointed to signs of relative stability expected to appear more clearly in the Sharjah real estate market at the end of this year.