UAE: Rents rise in Dubai; residents’ relocation from Sharjah to slow down

UAE: Rents rise in Dubai; residents’ relocation from Sharjah to slow down

The relocation of tenants from Sharjah to Dubai is slowing due to the rise in rentals in the region's financial capital.

The real estate industry analysts say that the upward trend in Dubai rents will continue in 2022, which began with the market's recovery after the Covid-19 pandemic last year, but at a bit slower rate.

"Relocations from Sharjah to Dubai are expected to slow down due to rising rental rates in Dubai and the relative affordability in Sharjah," Asteco said in the annual report on Thursday.

The lockdown and movement restrictions resulting from the Covid-19 also resulted in reduced relocation from the Northern Emirates to Dubai after the pandemic outbreak despite an increase in affordable developments in Dubai, it said.

The real estate industry insiders say that the migration of tenants within Dubai that started over the past few years from affordable to more luxurious localities continued last year due to a drop in rents.

The Business Bay area. File

Rents in some localities such as Business Bay, Greens, Deira, Dubai Sports City and Palm Jumeirah rose or crossed to 2012 level while others – primarily affordable – were close to catching up with a 10-year high.

When compared year-on-year, the latest data from real estate