Profit rises 40% in first half for Sharjah Property Group

Profit at the newly listed Sharjah Property Group surged by more than 40 per cent in the first half of this year as the company benefited from rent rises.

In its maiden filing to the Abu Dhabi Securities Exchange, the company, which owns and operates real estate in the emirate of Sharjah, reported that profit for the first six months of 2015 rose 40.9 per cent to Dh3.1 million, up from Dh2.2m a year earlier.

Rents for the six months to the end of June 2015 stood at Dh6.8m, up 11.5 per cent from Dh6.1m a year earlier, the company said.

For the second quarter of the year rents rose 9.6 per cent, standing at Dh3.4m compared with Dh3.1m a year ago.

According to Cluttons, rents in Sharjah rose by a total of 23.9 per cent during 2014 as the emirate benefited from rent hikes in neighbouring Dubai. However, those hikes flattened during 2015 as the Dubai market also slowed.

Sharjah rent trends tend to mirror those of Dubai as many people move to Sharjah when rents become too expensive in Dubai.

However, traffic congestion also acts as a push factor, encouraging tenants back to Dubai when the market cools.

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