Sharjah - Arabstoday
Apartment and villa rental rates in Sharjah fell slightly in the first quarter of 2012 but activity increased as new buildings entered the market and utility connections improved, according to a new Asteco report. Overall, Sharjah apartment rents were mostly unchanged during the first three months of this year but there were isolated falls of up to five percent in certain areas compared with the final quarter of 2011, as new buildings entered the market. The new supply resulted in a noticeable increase in viewings and enquiries in both Sharjah and Ajman, according to Asteco. Rents in Sharjah fell between 2-5 percent from the fourth quarter of last year for studios, one, two and three-bedroom apartments in areas such as Al Majaz, Al Qasemeh, Al Nahda and Al Khan, Asteco said. \"While rents fell for apartments in some areas of Sharjah, there were no changes to rents for villas, which could indicate stabilisation in this sector of the market,\" said Elaine Jones, CEO, Asteco Property Management. \"Last year there were ongoing problems with connection to electricity, water and sewage, which slowed the pace of supply across the Northern Emirates. \"Activity is now picking up, especially in Ras Al Khaimah and Fujairah, as electricity connections improved for residential buildings,\" added Jones. The average yearly rent for a three-bedroom villa in Sharjah ranged between AED70,000 and AED77,500 in the first quarter of this year, while rents for a three-bedroom apartment ranged between AED30,000 and AED63,000, Asteco\'s report added. Sharjah was the most expensive northern emirate for studio apartment rentals while Ras Al Khaimah and Umm Al Quwain were the cheapest. Rental rates for a one-bedroom apartment in Ajman, the second most expensive emirate, were unchanged from the fourth quarter, Asteco said. While activity picked up in Ras Al Khaimah, rents fell by between 4-6 percent in the first quarter as landlords continued to compete to fill their buildings. Rents for a two-bedroom apartment in Ras Al-Khaimah ranged between AED25,000 and AED33,000 while a three-bedroom apartment cost between AED30,000 and AED45,000. In Fujairah most of the buildings that received FEWA connections comprised two-bedroom apartments, which have provided small families with more choice at competitive rates. The number of transactions for office space in Sharjah was minimal during the first quarter and average yearly office rental rates were unchanged quarter-on-quarter. Rents ranged between AED484 per sq m to AED592 per sq m.