| Work Detail |
The count of foreign investors continues to rise, with the number of purchasing nationalities expanding from 103 in 2023 to 120 in 2024 Sharjah’s real estate market continued to demonstrate remarkable growth in 2024, with both the residential and industrial sectors reaching new milestones. According to the Sharjah Real Estate Registration Department, the market saw a 48% increase in the value of total transactions in 2024 compared with the same period in 2023, reaching AED40 billion ($11 billion) in value. The count of foreign investors continues to rise, with the number of purchasing nationalities expanding from 103 in 2023 to 120 in 2024, it stated. Strong economic fundamentals, rising investor confidence, and significant infrastructure investment have cemented Sharjah’s position as one of the UAE’s most dynamic real estate hubs, according to real estate industry expert Savills. Sharjah’s residential market is especially buoyant, and has been the primary driver of real estate sector growth. The shift towards home ownership has been fuelled by the fact that property prices are more affordable in Sharjah compared to neighbouring emirates of Dubai and Abu Dhabi, stated Savills Middle East in its latest report. According to the property expert, relaxed ownership laws too have encouraged a greater influx of overseas buyers. Developers are responding to evolving market demands by launching master-planned communities with enhanced amenities, including Masaar, Hayyan, and Al Zahia, attracting both investors and end-users. In the rental market, strong occupancy rates have led to a notable increase in rental prices, with apartment rents in areas such as Al Majaz and Al Qasimiya rising by over 22% in 2024 compared to the previous year. Meanwhile, demand for villa communities remains high, with four-bedroom villas in Masaar commanding up to AED290,000 per year, stated Savills in its report. The anticipated introduction of Sharjah’s new Rental Index is expected to enhance transparency and stability in the rental market, providing landlords and tenants with a clearer benchmark for rental valuations and reducing disputes between both parties. Similarly, the industrial market has also seen unprecedented rental growth, with average industrial rents increasing by 101% over the past four years, it added. In 2024 alone, rents in Emirates Industrial City (EIC) and Al Saja’a rose by 36.4%, narrowing the gap with Sharjah Industrial Areas 2-18 (SIA), which experienced a 28.6% increase. Occupancy levels have also reached an all-time high of 95%, underscoring the growing appeal of Sharjah as an industrial and logistics hub. Key developments, including the MAG Logistic Park in Sharjah Industrial Area 18 and EIC’s warehouse expansion, are pushing rental benchmarks, said the report. MAG’s Logistic Park, which launched at AED45-50 per sq. ft. in early 2022, has now seen new leases achieving AED60 per sq ft, highlighting the sustained rental growth across the market. Such is the demand for warehousing space that landlords across the emirate can now command significant premiums for any vacant space, said Savills in its report. Shane Breen, Head of Sharjah and Northern Emirates, Savills Middle East said: Sharjah’s real estate market continues to grow, driven by strong economic fundamentals, crucial infrastructure growth, and healthy investor confidence. The industrial sector is seeing rising demand from SMEs and large-scale operators, while the limited supply of high-specification stock presents opportunities for developers. On the residential side, shifting buyer demographics and increased foreign investment have led to record transaction volumes, he stated. Master-planned communities like Masaar and Al Zahia are attracting both end-users and investors, with affordability remaining a key advantage, he added. According to Breen, the surge in demand has been driven by the rapid expansion of transport and logistics companies, as well as increasing interest from the automotive, furniture manufacturing, and steel fabrication sectors. Sharjah’s cargo volumes grew by 38.6% in 2024, reinforcing its role as a key logistics hub for the region, he stated. However, with supply constraints continuing, the market remains undersupplied, prompting investors to explore the development of higher-grade industrial stock, he noted. With the government’s continued commitment to infrastructure investment and business-friendly policies, Sharjah is strengthening its position as a leading destination for businesses, investors, and residents. We expect sustained market growth in the years ahead, he added.-TradeArabia News Service |
