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Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976, today announces its Q1 market report for Sharjah’s commercial market 2012. Tourism is growing as visitor numbers through Sharjah International Airport were up 5.2% by the end of 2011 due to the rapid expansion of the low-cost carrier Air Arabia. 200,000 tourists from the Russian Federation visited the emirate in 2010, a figure which has continued to grow through 2011 and Q1 2012 thanks to Air Arabia’s newly-launched services to Moscow which increased to five flights a week by the end of December 2011.
The hospitality sector reported a 75% hotel occupancy rate in Q3 2011, a 4% improvement compared to the same period in 2010. Hotel rooms and hotel apartments showed 1.3m occupancy in 2011 compared to 1.1m for the same period in 2010. Sharjah’s proximity to the attractions of Dubai whilst providing more affordable accommodation options has contributed to the increased hotel occupancy rates in the emirate. The alcohol-free environment in Sharjah is also believed to attract a significant number of Muslim tourists.
Despite the likelihood that the market will encounter an oversupply of 600 hotel rooms by 2015, the outlook for the hospitality sector remains very promising. It should be noted that while the economic health of the industrial sector has continued to exert a stabilizing effect over the Sharjah property market, the office property sector has shown little sign of improvement.
Despite the drop of around 18% in mall rental rates in Sharjah from Q1 2011 to Q1 2012, Cluttons foresees significant improvement in the retail sector over the next 12 months with the expected completion of the Sahara Mall extension in Q3 2012. The upcoming Sharjah Mall overlooking the Al Khan lagoon is also likely to act as a catalyst for new development in the vicinity. In addition, the joint government venture with Majid Al Futtaim Properties, ’Sharjah Holding’, will introduce a range of mid-size community shopping centres under the brand name Matajer to improve the neighbourhood retail scene in the emirate, providing a contrasting shopping environment to the large malls which dominate the Sharjah retail experience.
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Sharjah International Airport - 41°F
