Tuesday, 16 February 2016

Is Northern Emirates Being Affected by Falling Property Price of Dubai?

The Northern Emirates are typically independent with Dubai's property market and sales of new homes in Northern Emirates are likely to remain subdued this year. House prices and rents going down in Dubai as more developers offer economical homes, appealing buyers to Sharjah, Ajman and Ras Al Khaimah could be more difficult in coming year. Except some quality projects at truly affordable costs may be able to generate some attraction.

Sale prices fell by 2% in Sharjah, by 5% in Ajman and 1% in Ras Al Khaimah last year, while rental rates dropped by 2% in Sharjah and Ras Al Khaimah, but stayed flat in Ajman. An unpredictable job market and falling rents in Dubai mean that there is not the common inflow of new tenants. Rents have not dropped enough in Dubai to attract settled tenants to shift.

Construction in Sharjah has gained as a result of investments in road connectivity and new tourism spots such as Noor Island and the Majaz water­front. Emirates investing heavily in infrastructure and trying to create more ideal environment as investors and tenants compare the quality of life outside Dubai.

A normal rent in Sharjah for one bed flat is Dh 34,000 per year and for 3 bedrooms flat is Dh 58,000. In Ras Al Khaimah,  Dh 38,000 for a one-bed per year to Dh 100,000 for 3 -bedroom. In Ajman, from Dh 43,000 for a one-bed up to Dh 64,000 for a 3-bedroom property approx.

New regulations were suggested in Sharjah in 2014 to allow non-GCC nationals to own properties under a 100 year leasehold, ownership rules stand unclear but also because of the new deal of budget property launches with accompanying payment deals in Dubai.

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