There has always been a steady movement of tenants residing in Sharjah and having their workplace in areas such as Jebel Ali, Dubai Investment Park, etc., mainly on account of saving on commute time and increased affordable options in Dubai. Their preferred areas are Dubai Silicon Oasis, Dubai Investment Park, Al Barsha, Dubai Sports City, etc.Typically, areas such as Al Qusais, Muhaisnah and Al Nahda Dubai attract a lot of residents who are considering the move.
This has been reported by popular daily Khaleej Times.
According to Ranju Kapoor, general manager of Hamptons International: “We have not observed a significant spike in rental migration from Sharjah to Dubai. However, with a number of new buildings coming in these areas, there is brisker activity. Demand has always been high in these areas and now there is increased supply to meet it.”
Meanwhile, tenants who wish to hedge against rental inflation in the run-up to Expo 2020 can opt to move into properties in outlying areas.
“All areas along the announced Metro expansion works [both Red and Green lines] will become much more desirable in the run-up to Expo 2020, given the convenience factor,” informs Kapoor.
Rents in properties in outlying areas with limited infrastructure tend to adjust quickest in a down cycle and last in the up cycle, says Jesse Downs, managing director of Phidar Advisory.
However, central locations usually put up a strong resistance to rent declines, due to a combination of occupier preferences, transportation options and costs. This could also be attributed to landlords’ pricing strategies.
“In Dubai, it’s relatively common to find landlords who prefer to leave a unit empty rather than adjust the rent to market rates. Effectively, this reduces inventory, even though supply remains unchanged,” adds Downs.