July 8 (Bloomberg) -- Rental rates in the northern sheikhdoms of the United Arab Emirates declined in the second-quarter after little change in the previous six months, Asteco Property Management said in a report today.
Apartment rents in Sharjah dropped 6 percent on average in the second-quarter because of increasing vacancy rates in some areas and the introduction of stricter tenancy rules, the Dubai-based company said. The decline follows a positive start to the year, it said.
“New regulations regarding shared accommodation have been introduced with tenants in Sharjah required to disclose their salaries and confirm that people living together are family members only,” said Elaine Jones, chief executive officer of Asteco. “Subsequently, we have seen tenants who previously shared accommodation, move independently to more affordable smaller units, prompting a decline in rental rates.”
Buildings along Mina Road and in Al Yarmouk, which commanded the highest rents, saw the biggest falls of 21 percent and 12 percent respectively.
Annual villa rents were little changed with rates for three-bedroom properties in Al Khan, Shargan and Al Quz in the range of 70,000 ($19,000) to 77,500 dirhams, Asteco said.
Neighboring Ajman witnessed a slight downturn in the second-quarter with studio and one-bedroom apartments’ rents mostly falling. Sheikh Hamid Road and Corniche Road rents fell by an average of 6 percent because of issues with utility connections, according to the report.
Apartment rents in Umm Al Quwain and Fujairah didn’t change much. Rates in Ras Al Khaimah dipped slightly in the first-quarter and began to stabilize by the end of the second-quarter.
To contact the reporter on this story: Zainab Fattah in Dubai on firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Blackman at email@example.com.