Property News
Dubai rental rates find echo in Sharjah and Ajman
Dubai: People from Sharjah and even Ajman are moving to Dubai in a big way as rents in the emirate become increasingly attractive, analysts say. They point out that as rents continue to fall in Dubai, Sharjah and Ajman have seen rents fall by a massive 21 per cent and 28 per cent respectively, as residents take advantage of Dubai’s rock bottom prices.
But it is not just cheap rents in Dubai that are doing the trick, explained Matthew Green, head of research and consultancy at CB Richard Ellis. Quality is a big factor too, he explained, suggesting a dearth of up-market properties in the northern emirates is behind residents’ exodus to Dubai. “The quality [of accommodation] in Dubai is typically superior to product in the northern emirates,” he said.
He added that, in general, economic uncertainty globally was prompting tenants to choose to rent rather than buy, impacting the UAE’s freehold market.”Economic issues such as the US downgrade and regional concerns have also created additional uncertainty which could impact the investment market,” he said. “With supply coming in so quickly, new freehold developments are experiencing the most depreciation.”
Source: Gulf News (Tuesday, August 16, 2011)