Real estate is all about trends, the better you are at predicting new trends before they become a trend, the more money you should be able to make. Popular trends influence real estate values and catching the right trend can see your property value soar.
One trend to watch is the Sharjah rental market. Right now, this market is not as inflated as Dubai or the UAE and rental prices are lower in this area. This makes for a good long-term investment strategy as you can save money on purchases while still receiving a solid ROI.
If you are looking for property to rent at reasonable rates, the place to be is in Sharjah. Rental costs have remained static even though demand for rentals and the population in the 3rd largest emirate has grown.
In the past year, rental rates have only increased between 2 and 4% making this an ideal investment area that attracts long-term renters. This is compared to the 20 to 30% rental cost rise in Dubai.
What makes the Sharjah real estate market so valuable now, is that it just opened up the sale of freehold properties to ex-pats in the last year. There are plans to open up more investment properties to ex-pats in the upcoming months.
What that means is that now is the time to invest in rental property in Sharjah as the latter part of this year may see a very steep increase in rental costs.
The rental laws for Sharjah may seem strange to ex-pats in some cases. Here are some of the more important laws you should be aware of:
You must declare how many people will be living in your apartment at the time of signing the lease.
Low-income bachelors or labourers are not allowed to live in residential neighbourhoods or family areas. You may be required o provide passport information for all people living in the apartment, etc., as well as familial connection proof. For example, a marriage certificate.
Landlords can increase the rent only after three years from the beginning of the tenancy contract. There is no cap on the increase but rental increases are expected to follow current market values.
Tenants cannot terminate the tenancy agreement before the expiry date, except for the occurrence of a force majeure (beyond your control) event. In the case of a force majeure event, the tenant must pay at least 30% of the remaining rental amount unless otherwise agreed to by the landlord and tenant.
Failure to pay rent can result in eviction 15 days after the rent due date.
The lease agreement remains in effect if the landlord decides to sell the building. This rule also applies when the landlord dies.
Landlords and real estate agents are not allowed to charge a renewal fee when the lease is renewed. To do so would violate Shariah tenancy law.
The landlord is responsible for all necessary maintenance during the lease period. Tenants are responsible for minor maintenance or what has been agreed to in the lease.
Landlords can cancel the lease if, one, they wish to demolish the property or conduct complete maintenance that would require eviction. Or two, if they wish to occupy the property for personal use and have no other appropriate residence.
The tenant should be given 3 months' notice in either case. Make sure to research all rental laws before you sign the lease.
There are benefits to both options and the one you choose will be determined by your circumstances. For short-term rentals, you have flexibility, no overhead, apartments are already furnished so no hassles and more.
The negatives that come with short-term renting are that you may lose some privacy, you will pay more and your rental options will be limited. A short-term rental is defined as being for a period of under 12 months.
Long-term rentals are defined as a rental period longer than 1-year. Generally, you are paying for the full year of rental in advance with one cheque. The benefits of long-term renting are you get stability, no sudden rent increases, privacy, and you can decorate to your tastes.
The negatives will include utility payments and other fees, no flexibility and you have to handle the moving of your furniture etc., in and out of the apartment.
Short-term renting is only good for those tourists who will be coming for a week or two and then returning home. There is no advantage for those people who need long-term leases except to buy time to find the right apartment for their situation.
Many people rent in Sharjah and then commute to work in Dubai. This is how they take advantage of the lower rental and purchase costs without sacrificing any amenities.
With the current rental costs at a very stable level, this is an ideal situation if you are needing to save money. If you are buying instead of renting, your costs may be lower but so is your ROI.
You have to fully investigate the rental and investment situation before making your decision.
To get expert help in investing or renting in Sharjah, just call our estate agency. Our agency has over 10 years of renting and investing experience in Sharjah, Dubai, and the UAE.
Plus, our agents are experts in their neighbourhoods so you will get the best information and deals possible. It is not easy to invest internationally so do it with experienced estate agents by your side.
One call to us today will help you avoid any investment and rental traps that catch unsuspecting foreign investors. Call now as our agents are more than willing to help you succeed in this real estate market.
A step by step guide to acquiring your property in Dubai. Speak to one of our Dubai experts if you need more information.Learn More
A step by step guide to selling your property in Dubai. Speak to one of our Dubai experts if you need more information.Learn More
Here are our area guides that will allow you to choose the most suitable neighbourhood for your tastes. Speak to one of our Dubai experts if you need more information.Learn More
Here are our development guides that will allow you to choose the most suitable development for your tastes. Speak to one of our Dubai experts if you need more information.Learn More
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site analytics and advertising efforts.