Cluttons, the real estate specialist that has enjoyed a dedicated Middle Eastern presence since 1976, today announces its Q1 market report for Sharjah’s residential market in 2012. Strong population growth and more attractive entertainment and leisure options for residents have contributed to reassuringly strong occupancy rates despite competition from falling rents in Dubai and the steady increase in available residential stock across the emirate. Well- managed buildings have been achieving 100% occupancy rates this year.

The completion of developments such as the AED 100 million Al Majaz Waterfront has given impetus to some landlords in nearby areas to commence refurbishment programmes in order to capitalize on the opportunity to get premium rents for apartments with some of the best views and amenities in the emirate.

The Qassimiya and Abu Shaghara districts are still popular with more price- conscious tenants due to the quality of residential units on offer, the local amenities and ample varieties of good quality affordable restaurants. Older, less desirable stock in areas further away from the city centre or with poorer access to main roads are still struggling to achieve market rents and high occupancies.

Villa stock shows mixed results as villas do not suffer from the same oversupply problems as apartments. Landlords have seen a seen a slow decline in rental rates over the last two years, achieving some stability over the past three months. Prices for large 5 bedroom villas in areas like Sharqan have dropped around 30% since 2010. There is strong demand for 3 bedroom villas, but a lack of supply and the reluctance of landlords to drop rents have prevented this sector from developing. Rents have declined slowly over the past two years as tenants looked at cheaper alternatives in Dubai, however over the past three months the market has remained relatively stable.

Values of apartments in less desirable locations have continued to fall over the past two years, dropping by an average of 20%, with prices remaining stable since Q1 2011 as the volume of new stock coming on to the market finally slows down. Popular buildings are experiencing strong demand, with some buildings achieving 100% occupancy and others creating waiting lists.

Cluttons predicts that rents are approaching their lowest point and will likely level out during the rest of 2012, with the possibility of some increases in the more popular locations as demand is boosted by increased population growth.

We accept Guest Posts

Download the Dubai City Guide iPhone mobile app

DubaiCityGuide.com is owned and managed by Cyber Gear