Sharjah’s rental landscape is undergoing a rapid transformation as demand spikes and rental rates soar, driven by a surge in relocations from neighboring emirates like Dubai. According to estate agents, lease renewals are witnessing average hikes of 5-15%, particularly for contracts exiting the initial three-year no-hike clause.
“Newer residential towers and villa communities are experiencing high occupancy rates, surpassing 80% in sought-after districts,” noted one estate agent, highlighting the pressure on existing leases at renewal times.
A recent report from dubizzle sheds light on rental trends, indicating a 15% increase in average rents for apartments in Al Nahda Sharjah in 2023. This surge has pushed one- and two-bedroom unit rents to between Dh25,000-Dh30,000, reflecting the appeal of newer buildings with larger floor areas. Studios remain budget-friendly, averaging around Dh19,000.
“Al Nahda is particularly favored for its affordability and proximity to Dubai, making it a prime choice for working individuals,” the report emphasized, noting that despite the increases, rents in Al Nahda remain 20-30% lower than comparable areas in Dubai.
The trend towards Sharjah is further bolstered by the upcoming school admissions season, expected to drive additional rental demand by April or May.
While rental gains in Sharjah were more subdued during the early post-Covid recovery phase, 2024 marks a noticeable acceleration, especially in high-end segments and freehold areas. This growth is anticipated to continue with more residential units becoming available this year and new off-plan launches planned up to 2027-28.
Despite these increases, Sharjah continues to offer budget-friendly options across various districts including Muwaileh, Al Qasimia, Al Majaz, and Al Taawun, attracting tenants seeking affordable living options.
As the rental market evolves, older buildings are also being upgraded to compete with newer developments, signaling a dynamic shift in Sharjah’s real estate landscape.
The accelerated growth in Sharjah’s rental market underscores its growing appeal among residents seeking affordable yet quality living options within close proximity to Dubai.