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Surging rents in Sharjah, Ajman worry tenants

Confirming an increase in the residential and commercial property rents by five per cent to 15 per cent, Shadi Ahmed Mustafa Ammourah, a representative of Al Majid Real Estate in Sharjah, said that the increase is because of the construction boom in the emirate.

'Several new commercial properties are coming up after a gap of a year or two, but surprisingly, the demand has also increased simultaneously,' he said. The increase has been witnessed over the past six months, said Mr Ammourah adding that all type of buildings, old or new, are affected by this increase.

Speaking to Khaleej Times, a tenant Prakash Mehra, residing in a five-year-old building in Al Qasimiya area, said: 'It is understandable if the rent for new buildings is increased, but do why we have to pay rent - increased by Dh2, 000 - for an old building? We could shift and enjoy a new building with more facilities for the same rent.'

'The rent increase in an old building is basically due to the increase in the rent of a neighbouring new building,' says Ghaith Al Jejkli, a representative of Better Homes in Sharjah. 'This is like the same situation as 'if my neighbour has done this, then why shouldn't I?' he explained.

Though several tenants complained of increase in rents by Dh2, 000 for one-bedroom apartments and Dh4, 000 for two-bedroom apartments, Mr Jejkli said that the increase has been levied mostly on apartments below the Dh40, 000 rent. 'But it mainly depends on the landlord, the type of building, the area and the kind of facilities that the building offers,' he said.

Mr Jejkli also said that the sudden increase could possibly be due to the mushroom growth of new projects. 'It was noticed that in Sharjah, there was no new building for lease for the past two to three years as it takes time for a new licence to be made and it takes even longer for electricity to be provided to the building,' he said.

He explained that now, suddenly, there was a spurt in the growth and availability of new buildings, while the demand had never diminished, therefore, increase in the rents was inevitable.

Asif Baig, another tenant in Abu Shagara area in Sharjah, whose building owner has increased the rent for a two-bedroom apartment from Dh16, 000 to Dh18, 000 on the next renewal, said that the increase was uncalled for. 'We are already paying too much for living in Sharjah as we have to counter the traffic jams everyday. Leaving aside luxuries, most buildings do not even offer necessities such as cupboards and storage spaces, so why the increase,' he complained.

Mr Ammourah said that though the rents for residential buildings have been increased by over 10 per cent, the rents for commercial properties including shops and offices have not increased more than two to three per cent.

Ali Debo, a representative of Northern Emirates Real Estate, also confirmed the increase in the rents in Ajman since the beginning of the year 2004. 'The increase in the rent is due to the increase in demand,' he said, adding, 'People are shifting from Sharjah to Ajman, therefore, the demand for good apartments has increased.'

Mr Debo said that though the increase in rents depends mostly on the locality and facilities offered by the building owner, the rent for a one-bedroom apartment with a split A/C has now increased to Dh11, 500 from the earlier Dh8, 000.

He also said that the demand for studio flats has increased in Ajman. 'People are ready to pay advance rent and insurance in certain areas of Ajman such as Al Neemiya, even before the building has been completed,' he added.

A resident of Ajman, Saif Al Zaabi complained that building owners in Ajman were charging more for the apartments because of the extra money they had to pay to the Ajman Municipality for the ongoing sewerage project. 'Though the sewerage project is for the health benefits of the Ajman residents, why do we have to pay an increased rent for something that the building owners should actually take care of?' said Mr Zaabi.

Mr Debo confirmed that the sewerage project was among the reasons for the rent increase.

'The building owners are letting the tenants know beforehand that they will be charging more as rent for apartments in the new buildings because they have to cover up for the registration of the sewerage services being laid down for the collection of sewage through a piped sewer network.

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