The residential property rental market in Sharjah, UAE, is strengthening with landlords in the Emirate benefiting from the rising residential rents in Dubai and an influx of people who are being priced out of the Dubai market.

According to the latest report from Cluttons, rental prices not seen for several years are now being achieved in Sharjah.

The firm cites the example of recently launched Arenco Golden Sands Tower in the Al Nahda area of Sharjah, with annual rents from AED 41,000 (£7,300 for one bedroom units).

Additionally, landlords are tightening up on their terms and are only prepared to accept a one cheque annual payment with a further 20% of the annual rent required as a security deposit.

‘Sharjah is viewed as the most suitable alternative to those finding themselves out priced by rising rents in Dubai, and demand is outstripping supply for the first time since the global financial crisis. We also note landlords offering tight payment terms, in a move away from flexibility,’ said Shane Breen, associate director at Cluttons in Sharjah.

He pointed out that whilst this tower doesn’t necessarily set the market rate, it represents a significant shift in the rental market. Other rental rates in the same location average around AED 30,000 to AED 32,000 (£5,500) per year for a medium quality one bedroom flat.

However, government legislation is in place to help protect tenants from spiralling prices. Sharjah Municipality offers tenants a protection period of three years from the start of a new lease with rates then moving to market rate on renewal of the fourth year.