The real estate market in Sharjah has demonstrated strong demand for residential properties, solidifying its position as a preferred location for residential developments. Many expatriates working in neighboring emirates choose to reside in Sharjah due to its affordable rental values and well-established social infrastructure. This consistent demand extends to both rental properties and freehold properties, particularly in the villa and townhouse segments.
A noticeable trend within the rental market is the growing segregation between high-quality, high-end projects and the rest of the market. The high-end segment has experienced robust demand, with occupancy levels estimated to exceed 90%. However, the influx of new residential supply expected to be delivered in 2023 and beyond may have a negative impact on older properties in the secondary market.
The Sharjah real estate market is poised for change in 2023, with apartment sales prices recording quarterly growth in the last quarter of 2022. In January 2023 alone, there were 2,999 real estate transactions worth $544.5M (AED 2B) in Sharjah. The market is witnessing increased rental pressure, prompting a rise in demand for new projects available on a freehold basis. Local developers are expected to increase their spending to capitalize on the anticipated freehold boom following the 2022 legal amendment.
Moreover, the Sharjah Real Estate Registration Department reported an impressive number of real estate transactions, exceeding 21,400, with a total value surpassing AED 5.9B. These figures highlight the robustness and potential of the Sharjah real estate market. Concurrently, the real estate market in the UAE as a whole is experiencing rapid growth, estimated at a value of $250B, making it one of the fastest-growing sectors in the region.
In line with this trend, the recently-concluded Sharjah Real Estate Exhibition, ACRES 2023, has ignited a lasting impact on the industry. Organized by the Sharjah Chamber of Commerce and Industry and the Sharjah Real Estate Registration Department, this dynamic event attracted a diverse range of visitors, investors, and entrepreneurs from within and outside the UAE. ACRES 2023 served as an ideal platform for industry professionals to engage in discussions, establish strategic partnerships, and gain valuable insights into the latest trends and developments shaping the real estate landscape.
The exhibition catered to the evolving needs of the real estate sector by offering various alternatives to meet the demands of this rapidly growing industry. Participants included major real estate development companies from other emirates, financial institutions, insurance, legal consultancy firms, and emerging companies in real estate technology and artificial intelligence. This diverse participation provided a comprehensive showcase of projects and services to an engaged audience.
Furthermore, ACRES 2023 featured an integrated program of training courses, workshops, and specialized discussion sessions. These sessions covered a range of topics, including the latest innovations and developments in the real estate sector, as well as the utilization of real estate technology systems. Additionally, the sessions delved into estate legislation aimed at safeguarding the interests of investors. Notably, the Executive Council of Sharjah’s Decision No. (9) of 2022 was a significant highlight, regulating the ownership and utilization of real estate by companies and institutions within the emirate. This pioneering legislation, the first of its kind in the country, establishes a comprehensive legal framework to effectively manage all transactions related to ownership and usufruct rights of companies, institutions, and legal entities in Sharjah.
In conclusion, the real estate market in Sharjah continues to thrive with strong demand for residential properties, driven by the city’s appeal as a preferred location for residential developments. The affordable rental values and well-established social infrastructure attract a significant expatriate population from neighboring emirates. The market has witnessed a steady increase in demand for freehold properties, particularly in the villa and townhouse segments. However, the growing segregation between high-end projects and the rest of the market poses challenges for older properties in the secondary market.
The market outlook for 2023 indicates positive growth, with apartment sales prices experiencing quarterly growth and a substantial number of real estate transactions taking place. The anticipated freehold boom following the legal amendment in 2022 is expected to further fuel demand for new projects. The Sharjah Real Estate Registration Department’s report of impressive transaction numbers and the UAE’s overall real estate market growth emphasize the region’s potential and attractiveness to investors.
Overall, the Sharjah real estate market is poised for further growth and transformation in the coming years, supported by strong demand, regulatory developments, and initiatives that enhance the sector’s efficiency and attractiveness to investors.
