Residents looking to rent mid- to upper-mid-range homes in Dubai and Sharjah face significant rent hikes on new leases. While Dubai has seen its biggest rent increases during lease renewals, Sharjah is experiencing sharp rises for new leases.

In Dubai, the updated RERA Rental Index, effective since March, has driven up rental costs. However, the surprise comes from Sharjah, where rents surged dramatically between April and June. Popular neighborhoods such as Al Majaz, Al Nahda, and Al Qasimia have seen annual rent increases of 15%, 17%, and 14%, according to Asteco’s latest property market report.

For instance, a two-bedroom apartment in Al Majaz now costs up to Dh60,000 annually. In Al Nahda, rents range from Dh25,000 to Dh50,000, while in Al Qasimia, they fall between Dh20,000 and Dh40,000.

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From April to June, rents in Sharjah’s popular areas rose by 5-9%. After a slow start to the year, rental rates in Sharjah have surged significantly, driven by increased demand from new residents. Despite these higher rates, new tenants benefit from regulations that prevent rent hikes for the first three years of a lease, with increases allowed only once every two years.

Overall, both cities are experiencing notable increases in rental costs, with Sharjah’s sharp rises coming as a surprise.

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