SHARJAH -- Rents of warehousing facilities in Sharjah have reportedly increased by 50 per cent during the current year.
Sources in the real estate sector said the rent hike was caused by the increase in demand for warehouses after Sharjah Municipality
put a number of conditions to ensure safety in warehouses and stopped issuing licences to industrial houses inside the city.
Abdulla Hassan, owner of Al Ridwan Company, said warehouse owners
in Sharjah's industrial area are complaining about the across-the-board
increase in rents. The rent of one-square-foot area in Sharjah
Industrial Area No.10 and No.15 starts from Dh35, while in No.18 it has
reached Dh45. During the last six months there has been a 30 per cent
increase in rents of warehouses located in industrial area No.18.
He said that rents of warehouses that are closer to Dubai have shot up
dramatically even though some of them have to depend on generators in
the absence of power supply.
Hassan claimed that since
the beginning of the current year, rents of warehousing facilities in
Sharjah had increased by 50 per cent, as a result of which small
businesses are faced with the problem of covering their operating
expenses.
Mohammed Radwan from Al Mazrouei Establishment
said that the rents are being determined according to the location of
the warehouse and the height of the ceiling.
The utilising of warehousing facilities for commercial purposes, too, has been instrumental in pushing up the prices.
It is not just the warehouses whose rents are on the upswing. The
commercial properties in Al Wahda Street, Abu Shaghara, Al Nahda and
the Old Expo Centre area have witnessed around 15 per cent increase in
rents.
Some sources in the real estate sector feel that
the high demand for warehouses in Sharjah from Dubai business houses
has also contributed to the rent hike.
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