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Ajman absorbs biggest rent drop at 19% annually
As average apartment rents across the Northern Emirates remained under pressure during the first quarter, falling by 12 per cent year-on-year, analysts expect the trend to continue amid the coronavirus pandemic. According to data from Cavendish Maxwell, average annual rents in Sharjah range from Dh16,500 for a studio to Dh42,000 for three-bedroom apartments. Further up north, there are even more competitive prices for bigger accommodations, with three-bedroom apartments in Umm Al Quwain available for Dh29,000 on average, down from Dh30,000 in the fourth quarter last year. “On average, residences in Sharjah and the Northern Emirates are approximately 20–40 per cent cheaper than Dubai,” said Aditi Gouri, associate partner, strategic consulting and research at Cavendish Maxwell. “As of Q1 2020, the market stabilised slightly, but continued to register low rents and rates. On a quarterly basis, single-digit declines in rents continued into 2020.”
According to Asteco, the average rents for typical apartments in the Northern Emirates softened by around 2 per cent during the first three months of the year compared with the previous period, and 12 per cent annually.
“Similar to Dubai, sales prices and rental rates will definitely soften due to the sheer volume of existing and new supply, and in line with the overall tepid global, regional and local economic conditions and bearish market sentiment,” said John Stevens, managing director of Asteco.
The biggest declines were seen in Ajman, where rents dropped 19 per cent annually and 4 per cent quarter-on-quarter, and Ras Al Khaimah, which saw a decline of 15 per cent annually and 2 per cent quarterly. In Sharjah, rental rates retreated 13 per cent annually and 3 per cent quarter-on-quarter. Fujairah and Umm Al Quwain both saw single-digit declines – 9 percent annual drop for both, and quarterly decline of 3 per cent and 2 per cent respectively.
This article was originally published in Property Weekly Gulf News.
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