Sharjah rents rise as former Dubai residents add to surging demand

Sharjah is experiencing a rise in residential rents , with some real estate agents reporting increases of up to 50 per cent. Economic growth after the pandemic downturn, surging rents in other emirates, particularly Dubai , and an influx of residents from countries such as Sudan, Russia and Ukraine seeking stability, are among the reasons for this surge in Sharjah's popularity. Rafeek Mattar, owner of Qasr Al Jazeera Real Estate Company, told The National he is seeing rental increases ranging from 30 to 50 per cent in the emirate. “This has put considerable pressure on the housing supply, with available units insufficient to meet demand,” he said. “Escalating rental prices in Dubai have also pushed residents to Sharjah, in search of more affordable options." “A one-bedroom apartment that used to rent for Dh18,000 to Dh20,000 now costs around Dh28,000. A studio that was Dh11,000 to Dh13,000 has risen to Dh17,000, and two-bedroom apartments that were Dh22,000 to Dh25,000 now range from Dh33,000 to Dh36,000. There’s no cap on rent increases in Sharjah. Landlords adjust their rents based on the market and the rates of nearby properties, which means prices can vary depending on the area.” According to Sharjah Municipality, the first quarter of 2024 saw a remarkable 26 per cent uptick in rental agreements, with 81,921 contracts attested, compared to 64,878 in the same period in 2023. Landlords see this as a long-awaited boost after the financial strain of the Covid-19 pandemic, when many tenants delayed or failed to pay rent. “The pandemic left landlords in a tough spot. Many landlords I work with are still recovering, with unpaid rents totalling Dh9 million,” said Mr Mattar. “This rental surge encourages more investment in the real estate sector, boosting economic growth and creating jobs across industries, from construction to property management.” Magdy Abdulghani, director of Al Tuhfah Memareyah Real Estate in Sharjah, said there was a growing trend of residents moving from Dubai to Sharjah due to rising rents. He said this movement began in July and had steadily increased over recent months, contributing to a surge in rental demand in Sharjah. “Approximately 10 per cent of our clients in the last six months are individuals who left Dubai for Sharjah in search of more affordable housing options,” he said. “This trend is reshaping the real estate landscape in Sharjah. “Of the clients we've worked with recently, 80 per cent are newcomers to the country, while the other 10 per cent are relocating from other emirates aside from those moving out of Dubai,” he added. Under Sharjah rental law , landlords cannot raise rents for three years from the start of a rental agreement unless both parties agree. However, there is no cap on rent increases . If tenants accept a rise within three years, landlords are barred from increasing rents again for two years. After that, any increase must reflect the fair rent value. But, with no set cap, residents question how this is determined and fear landlords may consider any increase fair. With a landlord potentially having to wait three years until they can draw up a new tenancy contract, residents fear the law encourages unreasonably high rent demands. Mutaz Al Mousily, 29, a Jordanian living with his family in a three-bedroom apartment in Al Taawun, was recently notified that his rent would rise from Dh48,000 to Dh70,000. “It’s shocking. I understand landlords have the right to raise rents, but a jump like this – almost double – is too much,” he told The National . “We’re left with few options. Either we accept the increase or move, but moving comes with its own costs and challenges.” “It’s a heavy burden, especially with the rising cost of living,” Reham Madgy, from Egypt, said as she shared similar concerns after her rent increased by Dh15,000 in the last two years. “Our salaries aren’t increasing, and we have school fees, utility bills, and now this huge rent hike.” Seeing her rent increase from Dh27,000 to Dh32,000 after four years in the same building on Al Ittihad Road, Yara Elbanna, 45, from Jordan, said: “The increase seems fair compared to others we’ve heard about, but the maintenance is lacking – cockroaches, no regular cleaning, and no free parking.” Tenants argue that managing rent increases requires greater accountability and improved property services. “Landlords should be required to justify these increases with better services and improvements,” said Mr Al Mousily. “We hope a rent increase cap is introduced, like in Dubai, to prevent landlords from raising rents excessively without providing corresponding improvements,” the three tenants said in agreement. Emirati Humaeid Al Mansoori, 50, who owns several buildings in Sharjah’s Al Shuwaiheen area, said rent increases are driven by market demand. “I haven’t raised rents in my buildings because the surrounding buildings haven’t done so,” he said. “We’re seeing these increases in high-rise towers and larger complexes, not in smaller buildings.” He highlighted the challenges landlords faced during the pandemic, with many tenants failing to pay rent, forcing legal action. “Some tenants left without paying, and I had to go through the courts to reclaim my properties, then had to cover maintenance and cleaning costs before re-renting, all while repaying loans, with interest rates rising from 4 to 9 per cent. Our financial burden has only grown,” he said.

Sharjah rents rise as former Dubai residents add to surging demand

Landlords say economic growth and escalating prices in other emirates among reasons behind market popularity