Sharjah residential, office markets gaining strength

The strong growth of the UAE economy has also been mirrored at an emirate level in Sharjah and this has boosted demand in both the residential and commercial property markets in the emirate, according to international real estate consultancy Cluttons.
The latest Spring 2014 Residential Market Outlook reports released by Cluttons point to rising rents in Dubai, an influx of residents from troubled parts of the region as well as renewed economic activity and job creation in Sharjah, which are making the emirate an attractive option for tenants.
Average residential rents climbed by 4.5 percent during the first quarter of 2014, leaving them 19 percent higher than this time last year, further building on a 3.4 percent increase in Q4 2013.
Average rents in Al-Qassimiya have seen the strongest gains over the past 12 months, with rents now standing 36 percent up on Q1 2013. Villas on the other hand have registered a 13 percent rise in rents in the first quarter, which compares to a 25 percent increase throughout 2013.
According to Steve Morgan, Cluttons Middle East CEO: “The strong growth in villa rates has been catalyzed by rising demand for villa communities, particularly along the Sharjah Airport/Maliha Road corridor. This is being fueled by a rising population, which in turn is being driven by the emirate’s expanding aviation sector, a growing number of international schools and the proximity to Sharjah International Airport. Sharjah International Airport, through the brisk expansion of Air Arabia is starting to extend its sphere of influence on surrounding areas and is emerging as another budding UAE aerotropolis, in much the same way that Al-Maktoum International is spurring development in areas south of Jebel Ali.”
Morgan said: “Developers are also keen to capitalize on this strong demand and we are recording a substantial rise in the number of feasibility studies requested for master planned residential communities in this area. Not only does the Maliha Road corridor provide easy access into Dubai, but the mushrooming of these new lifestyle destinations will start to put Sharjah’s residential offerings on par with Dubai and Abu Dhabi, albeit on a smaller scale.”
The report also reveals that the current political instability across parts of the Middle East has caused an influx of people setting up home in Sharjah, due to largely affordable rents and its rich Islamic heritage.
The report points to these expatriates being flush with ‘refugee capital’, which is finding its way into Sharjah’s off-plan residential sales market. This has in turn encouraged some developers to return to the sales market.