Sharjah residents complain about rent rises

SHARJAH // Rents in Sharjah are rising as residents move to escape increases in Dubai, say tenants.

Residents have complained that leases have risen by more than Dh10,000 a year in some cases as landlords and real estate agents cash in on new tenants from Dubai.

Popular areas such as Al Nahda and Al Khan, which straddle the border between the emirates, have seen rents for one-bedroom flats jump to about Dh30,000.

The same flats could be rented for about Dh18,000 last year. Prices for two-bedroom flats have increased from Dh25,000 to about Dh35,000.

Long-term tenants fear they are being forced out of areas that for many years have been known for low prices.

“There is a belief of some real estate agents that clients from Dubai are wealthy and pay more so they consider replacing their many years tenants with new ones from Dubai,” said Abdul Rauf, a resident of Al Qasimia.

He said rent for his two-bedroom flat was being increased this year from Dh24,000 to Dh35,000.

In areas such as Al Shuwayehen, Rolla, Butina and Al Nabba, one-bedroom homes are on the market for between Dh20,000 and Dh26,000 a year, depending on the age and condition of the building. This is up from about Dh17,000.

Older buildings, which often require tenants to install their own air-conditioning units, can cost between Dh18,000 and Dh20,000.

Sharjah Municipality does not enforce a cap on the amount rent can be increased, although landlords are only allowed to put up rent after three years.

Despite this, the emirate has for many years been seen as a cheaper place to live, particularly for families, with many people choosing to commute to jobs in Dubai and Abu Dhabi.

But many feel that may soon be a thing of the past.

“I think it’s getting more expensive to stay in Sharjah and work in Dubai,” said Mohammed. “You have to pay rent almost same to that in Dubai and then a higher utility bill, and pass through Salik gates to go to work on Sheikh Zayed Road each day.”

Other residents said the cost of living had been increasing slowly for the past four years.

“For us we are not here to save a lot of money and take home, we simply want to live a decent life,” said Adam. “We have nowhere to run to when they increase everything from food to rent.”

Real estate agents said the emirate was not following Dubai or Abu Dhabi, and rents in Sharjah were relatively stable – for now.

“There are no rent increases in Sharjah, though there is panic among people simply on the basis that rent is going up in Dubai,” said Abdul Hamid, a salesman with Al Asima Real Estate.

“We have not increased rent for the whole of this year and our flats in Al Nabba are just given out at Dh20,000.”

He said rising prices in Dubai had recently pushed up demand for homes in Sharjah, with almost every apartment in Al Nabba now filled.

Saleem Al Kaabi, director of the municipality’s rental disputes section, said it had handled more than 4,000 disputes this year, including cases where landlords were trying to increase rents illegally within three years of the first agreement.

“After the three years, then rent can only be increased once every two years but not every year,” said Mr Al Kaabi.

But he said rents in Sharjah were likely to go up in the future, citing an upswing in the economy, Dubai’s successful Expo 2020 bid and an influx of Syrian nationals who have relocated to escape the conflict at home, driving up demand for homes.

ykakande@thenational.ae