Essa Al Mulla, the Lease Manager for Fujairah National Properties, has an interesting analysis of the residential market in the eastern emirate.
This report was created in 2010 but it is still relevant and Essa plans to write a new report when the outlook changes significantly.
According to Essa Al Mulla the residential property outlook for Fujairah is influenced by these main factors:
1. Population Increase
The Fujairah population last year was approximately 165,000 and it is growing by 7% meaning that 11,500 more people this year are hunting for homes. This puts pressure on the rental market.
2. New Marriages
The marriage rate of young people is increasing in Fujairah by 14% each year (approximately 680 weddings). Not all newly married couples will need to find a unit of their own in Fujairah but this factor is influential.
3. Increase in New Employment
Look at Essa’s analysis of the employment statistics and his forecasting.
Supply and Demand
Essa predicts the total demand for housing units, he makes a prediction of new homes that will be available on the basis of housing permits granted in recent years and then he estimates whether supply will satisfy the demand.
A further critical factor in this equation is how fast new housing units will be switched on to the electricity supply.
Check out Essa’s forecast that indicates that as the electricity is turned on in Fujairah and new housing units become available, rental prices across the board will drop significantly.
Read for Yourself
The link to the paper Fujairah Residential Market Outlook 2010.
Check out rental accommodation available from Fujairah National Properties.
This article is also posted on the Fujairah in Focus Facebook Page.
Image: One of the rental apartment towers in Fujairah’s main street.