Rising rents in Sharjah and Ajman impact expatriates' savings

DUBAI: UAE is the Gulf country chosen by most of the people looking for employment abroad. Most of the expatriates send home the money they earn by minimizing expenses on house rent etc. But now the rents are increasing in most cities of the UAE, putting a shadow on the savings of the expatriates.

Sharjah and Ajman are the cities of choice for most UAE residents who want to save money on rent. But with demand increasing, rents are rising in these two emirates. Rents for one and two-bedroom apartments have increased by up to 30 percent.

Raif Hasan, founder of Eman Properties, says that Sharjah and Ajman are chosen because they are cheaper than the rents in Dubai. But with demand increasing post-COVID, the rental rates in these cities are increasing.

A&H Real Estate Manager Mohammad Ryan says one of the reasons for the increase in rents is that even people who used to live in other cities are moving to Sharjah. Till the end of last year, the rent for a one-bedroom apartment in Sharjah was from Dh24,000 (Rs 5,45,728.32). Now it has increased from 30,000 dirhams (6,82,160.43) to 35,000 (7,95,563.79) dirhams. The rent for a two-room apartment ranges from AED 36,000 to AED 52,000. He added that most people opt for one-room apartments because of the higher rates.

Another attractive factor for residents is that the rent in Sharjah is fixed for the first three years. Al Nahda, Al Taawoun and Al Majaz are some of the most popular places to stay. Al Nahda is the closest city to Dubai Bus Stand and Dubai Metro. As the city is home to hypermarkets, clinics, hospitals and other facilities, the demand for accommodation in Al Taawoun is also high. Another reason for the rise in rents is attributed to the increase in visa issuance and the increase in population in the UAE.

Experts say the growth in industry in Ras Al Khaimah is also influencing the demand for rental properties in Sharjah and Ajman. Due to the higher quality of life and safety, many foreigners are settling in the UAE and the reason for the rise in rental rates is also cited.