Sharjah is the third largest of the emirates of the United Arab Emirates, with a population of over 800,000. It comprises the city of Sharjah, which is the seat of the emirate, and other towns and enclaves such as Kalba, Dibba Al-Hisn and Khor Fakkan.
The fortunes of all the emirates are closely entwined, and so it is no surprise that the rising cost of living in Dubai has caused an influx of people into its neighbour and subsequently changed the makeup of the residential property market in Sharjah.
The latest data from Cluttons, who have specialised in Middle Eastern property matters for almost forty years, suggests that rental yields in the emirate are hitting new record highs.
As well as rising rents, tenants are also facing tighter restrictions from landlords, with many only willing to accept a one cheque annual payment and often also requiring an additional 20% as a security deposit.
The new influx of people into the rental sector in Sharjah means that demand is outstripping supply. This is partly due to the fact that many new buildings were ‘mothballed’ during the economic downturn over the past couple of years, resulting in a distinct lack of new stock.
Shane Breen, associate director at Cluttons in Sharjah, commented: “Sharjah is viewed as the most suitable alternative to those finding themselves out priced by rising rents in Dubai, and demand is outstripping supply for the first time since the global financial crisis. We also note landlords offering tight payment terms, in a move away from flexibility.”
Whilst the effects of the Arab Spring continue to be felt in the wider Middle Eastern region, the UAE for the most part has avoided significant social upheaval and maintained economic stability. This has meant that, although some investors are looking further afield to Brazil and other emergent economies, many of the larger fund investors are still prepared to place their trust in the emirates.
If you want to move money to the UAE make sure you compare the travel money exchange rates available from currency specialists with those offered by the banks.