As Dubai’s rental market continues to heat up, residents are looking to Sharjah and Ajman for more affordable housing options. However, these nearby emirates are now experiencing their own surge in rental prices due to increased demand. According to real estate experts, one to two-bedroom apartments in these areas are now about 20 percent more expensive compared to the last quarter of 2023.
Raif Hassan Ikkeri, founder of Emaan Properties LLC, highlighted the shift, noting in a Khaleej Times report, “The primary reason residents prefer Sharjah and Ajman is due to the difference in rents from Dubai. In the post-Covid period, rental rates in the UAE have been steadily increasing, opening new options in Sharjah and Ajman.”
Confirming the upward trend, Mohammed Rayyan, manager at A and H Real Estate, stated, “By the end of 2023, a one-bedroom flat was available starting at Dh24,000 per year in prominent areas of Sharjah. Now, the rent has soared, starting from Dh30,000 to Dh36,000, depending on the location, age of the building, and amenities.”
Rayyan also pointed out that most smaller units are now fully booked, adding, “Many residents are favouring one-bedroom apartments as they are suitable for small families. Two-bedroom apartments are generally preferred by families of four, often accommodating visiting parents from their home countries.”
Current market prices for two-bedroom flats in Sharjah range from Dh36,000 to Dh52,000. “Six months ago, the rent for a two-bedroom flat started at Dh34,000 going all the way up to Dh45,000,” Rayyan noted.
Preferred areas in Sharjah, such as Al Nahda, Al Tawoun, and Al Majaz, are in high demand due to their strategic locations and amenities. “Al Nahda is highly sought-after due to its proximity to the Dubai bus stand and easy access to the Dubai Metro. Al Tawoun is another preferred area, known for its convenient access to hypermarkets, clinics, hospitals, and other amenities, and easy exit to Dubai,” Rayyan explained.
The appeal of Sharjah is further enhanced by a unique rental feature: fixed rent for the first three years from the contract date. The growing population in the UAE is also a major factor driving housing demand in the northern Emirates. “The number of people coming into the country is growing significantly, with a notable increase in visas being issued,” said Ikkeri.
Additionally, the expanding industry in Ras Al Khaimah (RAK) is influencing housing demand in Sharjah and Ajman. “Many service-oriented industry executives working in RAK prefer living in Ajman and Sharjah and commuting to work, which is about a 45-minute drive,” Ikkeri mentioned.
Investment trends show that some newcomers to the UAE choose to buy villas in Ajman or Sharjah due to more favorable pricing. “End users looking to invest in properties opt for Ajman and Sharjah for their more spacious villas or apartments. For instance, a villa in Ajman starts at approximately Dh1.2 million, with a built-up area of over 2500 sq ft,” Ikkeri explained. Popular areas for freehold properties in Ajman include Rowdah, Yasmeen, and Zahia.
Experts also observed an influx of people from Western countries moving to the UAE for its higher living standards and safer environment for families, which directly impacts the rental markets. “The rents in Dubai have already risen by 30 percent compared to early 2023, which will have a ripple effect on the rental market in Sharjah and Ajman,” Ikkeri concluded.