Apartment and Villa Rents Still Falling in Northern Emirates

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(DUBAI, UAE) -- Most of the news from the UAE tends to be from Abu Dhabi or Dubai, but increasingly people are finding housing and office space in the seven smaller Northern Emirates, Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain, and Fujairah.

As in the rest of the country, rental prices in the Northern Emirates fell in Q2 because of lower demand and an increase in supply, with Sharjah and Ajman suffering decreases of eight percent, according to a new report released yesterday by Asteco Property Management.

Rents for studio apartments in Sharjah remained the same in Q2 and in Q1 with annual prices from $4360- $6540. But it was a different story for one, two, and three bedroom apartments, as prices dropped eight, four, and six percent, respectively. Unlike in Abu Dhabi and Dubai where villa prices tend to stay the same, in Sharjah villa prices were down an average of 12 percent.

In Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah prices continued to fall at rates similar to Q1 in most areas, according to the report. Rents for apartments on the desirable Corniche in Ajman fell even more, 12 percent  compared to seven percent in Q1.   The report added, "landlords, especially private landlords, are offering incentives and dropping their prices to secure occupancy."  Three bedroom apartments can be had for  $12,262 per year.

Developers in Ajman are looking to build confidence in the real estate market by introducing construction-linked payment schedules. Elaine Jones, CEO, Asteco Property Management, said, "Although the last three months have not seen any improvements in the real estate market, the Northern Emirates' various government departments are striving to ensure a better regulatory environment and planning on new ways to stimulate demand."

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