Foreign investors help Sharjah real estate thrive

Pexels/Mikhail Nilov

• 22% growth in H1
• Freehold opened to foreigners in 2022
• AED8.3bn of transactions

Sharjah’s real estate sector recorded 22 percent growth in the number of foreign investors during the first half of the year compared with the same period last year, attracting investors from 100 different nationalities.

The number of properties traded by foreign investors in the emirate during the first six months of this year reached almost 6,000, up 84.6 percent on the same period in 2023. 

Abdulaziz Ahmed Al-Shamsi, director general of the Sharjah Real Estate Registration Department, said that the total number of foreign investors was 5,422, an increase of 74 percent, while their cash trading volume amounted to AED8.3 billion, showing growth of 115 percent.

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The emirate has experienced a huge increase in sales since 2022 when freehold ownership was opened to all nationalities.

Latest figures from the registration department show there were AED2.8 billion worth of deals across the emirate in August, made up of more than 3,000 transactions.

“We’re witnessing a great demand,” said Ahmed Obaid Al Qadeer, CEO of the Sharjah Investment and Development Authority (Shurooq).

Shurooq, which deals in real estate, hospitality, culture and entertainment, earlier this month launched the first phase of its Ajwan development in Khorfokkan, the largest town on Sharjah’s east coast.

Phase one consists of 79 units, 60 percent of which have been sold, said Al Qadeer.

The complete project includes 185 apartments, a water park and hotel. Construction work on the first two residential buildings is due to start this year, with handover scheduled for early 2027.

“Hopefully by next year I think we’ll have two or three hotel openings and maybe two project launches of real estate in Sharjah,” Al Qadeer said.

Commuting and congestion

Sharjah is still seen as an affordable alternative for buyers as it is within commuting distance to neighbouring Dubai.

An apartment in the city centre of Sharjah will cost on average AED13,250 per square metre, while in Dubai that rises to AED17,334, according to figures from Property Finder. Rental prices are also almost 57 percent cheaper in Sharjah than in Dubai.

The emirate, however, still struggles with traffic congestion, particularly in Sharjah city, which has no metro link. 

However, a “sky pod” project, announced three years ago, was officially unveiled earlier this year. The 2.4km aerial track at the Sharjah Research, Technology and Innovation Park has pods that can transport up to 25 passengers at a time at speeds of 100kph. It is understood full implementation across the emirate remains some distance away.

Sharjah will also be home to a passenger station for the $11 billion Etihad Rail route, which will reduce travel time between Abu Dhabi and Fujairah to about 100 minutes.

The station, near the University City of Sharjah, will increase the number of passengers on the main rail network to about 14,000 daily during the week. Work is yet to start on the station and a completion date is to be announced.