R>Residential market landlords in Sharjah are once again moving to increase rents and restart stalled projects, indicating confidence in the market place, according to the latest outlook report from Cluttons.

However, the handover of new residential stock across the Emirate has slowed in the past six months making for a sustainable supply and demand balance.

Rents for sub prime properties have dropped, partly as a result of the new housing regulations aimed at reducing overcrowding in specific areas. However, other residential properties, both villas and apartments, in family areas such as Al Falaj, Ramia and Shargan, have maintained their rental values this year. Villa prices are expected to rise over the next six months due to limited new stock coming onto the market.

Demand for office space in 2012 has remained strongest from small and start ups with most looking for offices of approximately 2,000 square feet. The trend is for businesses to move out of residential properties and explore the increasing range of options provided by purpose built office towers, the report also says.

In terms of prime office space, the Al Majaz area is topping the list with its high quality offices achieving rents of AED50 to AES90 per square foot.

Trade, manufacturing and logistics are some of the best performing sectors in the Emirate, which has helped boost the industrial property market this year. This industrial sector is receiving rising demand for higher quality, more modern, purpose built premises both from new entrants to the market and companies looking to relocate.

Rental values range from AED16 to AES25 per square foot per annum according to location and facilities. Most of the demand is for larger, built to suit units in the free zones and in general, the most popular areas are those closest to the Sharjah CBD.

Warehouse rental rates have remained pretty steady at just under AED25 per square foot per annum since 2010 and are unlikely to change over the next 12 months.

Cluttons predicts that both rental values and sales prices in Sharjah