Dubai residents traditionally look to Sharjah and Ajman for more affordable rent options. However, a surge in demand has caused rental prices in these neighboring emirates to rise significantly.
According to experts, one- to two-bedroom apartments are now about 20% more expensive than in the last quarter of 2023.
Increased Demand and Rising Costs
Raif Hassan Ikkeri, founder of Emaan Properties LLC, explains, “Residents prefer Sharjah and Ajman due to the lower rent compared to Dubai. However, rental rates have been steadily increasing post-Covid, making these areas more expensive.”
Mohammed Rayyan, manager at A and H Real Estate, confirms this trend, noting that more people are relocating to the Northern Emirates, especially Sharjah.
“By the end of 2023, one-bedroom apartments in prime areas of Sharjah started at Dh24,000 per year. Now, rents range from Dh30,000 to Dh36,000, depending on location, building age, and amenities,” Rayyan said. He added that many smaller units in their agency are fully booked.
Preferred Apartment Types
Rayyan noted that one-bedroom apartments are popular among small families, while two-bedroom units are chosen by families of four, often to accommodate visiting relatives. Currently, two-bedroom flats in Sharjah rent for Dh36,000 to Dh52,000, compared to Dh34,000 to Dh45,000 six months ago.
Popular Residential Areas
Experts identify Al Nahda, Al Tawoun, and Al Majaz as top choices for residents. Al Nahda is favored for its proximity to the Dubai bus stand and Metro, while Al Tawoun is appreciated for its convenient access to hypermarkets, clinics, hospitals, and easy exit to Dubai.
Benefits of Living in Sharjah
Rayyan highlights that Sharjah’s schools are just a 30-minute drive from Dubai, making it an attractive option for families. Additionally, rents in Sharjah are fixed for the first three years of the contract, offering financial stability to residents.
Population Growth and Market Impact
Ikkeri points out that the UAE’s growing population significantly influences the real estate market. With an increasing number of visas issued, the demand for housing in Sharjah and Ajman continues to rise.
Furthermore, the expanding industry in Ras Al Khaimah (RAK) also drives housing demand in these areas, as many executives working in RAK prefer living in Sharjah and Ajman, with a commute of about 45 minutes.
Investment Trends
Investors often prefer Ajman and Sharjah for more spacious and affordable properties. “End users looking to invest in properties choose 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 said. Popular areas for freehold properties in Ajman include Rowdah, Yasmeen, and Zahia.
Western Influence
A notable influx of people from Western countries seeking higher living standards and safer environments for families also impacts the rental markets. Ikkeri mentions, “Rents in Dubai have already risen by 30% compared to early 2023, which will have a ripple effect on the rental market in Sharjah and Ajman.”
