Dubai: Rent increases in Sharjah are now rising at some of the fastest rates in the UAE, with average hikes on lease renewals being in the range of 18-25% against the 5-10% increases seen in Dubai or Abu Dhabi.
Of course, Sharjah started to see sharp spikes in rents only this year, and this is most apparent at the older buildings in the city and specifically in lease renewals. Plus, the rent increases are coming off a much lower base.
But the fact remains that apartment rents in each of the popular areas in the emirate are heading up the charts at rates never seen before, according to some leasing sources.
And it's likely to continue.
Heading into 2025, the pressure on rents is unlikely to ease as more tenants set up homes in the emirate even as new residential options become available, whether it’s apartments or villas.
Cutting rent gap between old and new homes
The rental increases on existing contracts are about trying to ‘level up’ as much as possible between rents at newer buildings and those that have been around longer. Landlords in Sharjah with older buildings have been on a renovation spree, and using it as a leverage to ask for a higher rent at renewal.
And in most cases, landlords are sticking to their demands. “I tried reasoning with my landlords about lowering his rent hike from 19% to around 14-15%,” said one resident. “He listened to all my requests, but ended the conversation by saying that I am free to look elsewhere for a new apartment.”
This resident, and many like him, eventually decided to renew the lease rather than look for other options.
Under recently issued Sharjah rental rules, a lease renewal will mean the landlord cannot raise rents for two years. (On new rental contracts, tenants have a 3-year rent-free period, but currently, they will have to spend much more than the market average to secure an apartment.)
“Sharjah rents are predicted to stay strong in 2025 – and there might even be as sharp a growth as now,” said Muhammad Ikhlaq, Sales and Leasing Manager at Betterhomes.
Property leasing agents talk about a fairly steady flow of new tenants choosing Sharjah as their base. “There are former residents of International City in Dubai who might have seen a doubling in their rental payouts from, say, Dh22,000 for a one-bedroom two years ago.
“To save on rental costs, some of them are shifting to Sharjah. Even with the rent increases of this year, Sharjah still has options to meet various budgets.”
More to follow...
