Warehousing Rents in Sharjah Surge by 50%
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. (via Khaleej Times)
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. (via Khaleej Times)
A trend that is hitting the SMEs in Dubai, Sharjah and whole of UAE. New areas for relocation of SMEs have either not been alloted or are not yet equipped with proper infrastructure facilities.
Labels: Business Setup
posted by bizzwhizz at 11:49 PM
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