Fujairah rents rise 10 per cent on limited supply

Fujairah: A limited supply of residential units in Fujairah contributed to a 10 per cent increase in house rents last year.
The director of a private real estate company in Fujairah said the limited availability of residential units in Fujairah could not keep pace with high demand from end users. He attributed the demand to an economic and commercial boom in all sectors in Fujairah, whose strategic location and capabilities have turned it into a hub of local and foreign capital.
The entry of new residential units is key to prevent the overheating of house rents in Fujairah, he added.
"The scarcity of studio flats has led demand to grow for one-bedroom apartments, which caused rents to go up to Dh35,000, while the yearly rent of two-bedroom apartments ranged between Dh45,000 to Dh55,000 and a three-bedroom apartment between Dh55,000 and Dh75,000," he said.
The future of the emirate's real estate market is tied to its economy which is seeing significant investments, particularly in the oil and petrochemical industries, trade and retail. Fujairah is also witnessing growing demand for plots of land, both residential and commercial, and farms.
While Fujairah house rents rose 10 per cent in the first half of 2015, there has been a balance between supply and demand from the second half of last year until the beginning of 2016. This has helped keep rents constant for the time being. Around 850 apartments were released in Fujairah in the said period. There still exists good demand for all residential units in Fujairah, especially for one-bedroom apartments, whose annual rent range from Dh28,000 to Dh35,000. The expert said the real estate market in Fujairah can accommodate more residential buildings, particularly three-bedroom apartments.
- business@khaleejtimes.com