But don’t give up just yet – there’s a solution closer than you think. Just a short drive up the motorway, Sharjah is emerging as the haven for those priced out of Dubai’s overheated market.
The rising costs in Dubai
Let’s face it, Dubai Property Market has been on fire lately. The pandemic-induced lull was short and prices have been going up, up, up ever since. According to real estate consultancy JLL, rents for single-family villas in Dubai have gone up 86% since the start of the pandemic.
This has been driven by an influx of white-collar workers who are drawn to Dubai’s tax-free regime and strategic location. But with supply struggling to keep up, the housing squeeze has become more and more intense and many residents are being forced to look for more affordable options.
Why Sharjah is Becoming Popular
Sharjah Rental Market has seen a substantial surge in recent years. In the first quarter of 2024 alone, there was a 26% increase in rental contracts. Let’s key backup pillars behind this.
Sharjah’s Transformation
Enter Sharjah , Dubai’s often overlooked neighbor to the north. Long seen as more conservative and low key, Sharjah is undergoing a transformation that’s making it a serious contender for those looking to escape Dubai’s sky high rents.
Since a 2022 law opened up property ownership to foreigners in select areas, developers have been working overtime to meet the demand. Massive projects like Arada Developments’ $9.5 billion Aljada community are delivering tens of thousands of new homes with state of the art amenities and recreational facilities.
The numbers are stark. According to Arada’s CEO Ahmed Alkhoshaibi, prices per square foot in Aljada have more than doubled since the project’s launch, from 650 dirhams ($177) to 1,400 dirhams ($381). But even at these prices Sharjah is 40% cheaper than comparable areas in Dubai.
A Mass Evacuation
It’s no surprise then that Sharjah is seeing a growing exodus of residents from Dubai. Shane Breen, head of the Sharjah office at Savills, says a significant number of new tenants in prime Sharjah developments have moved from Dubai, from areas as far and wide as Bur Dubai, Deira, Al Qusais, Dubai Marina and Dubai Hills. Shane Breen of Savills estimates 66% of new tenants in prime Sharjah developments have moved from Dubai. Top nationalities moving to Sharjah from Dubai are India (14%), Egypt (13%), Pakistan (10%), Sudan (8%) and Syria (6%).
The allure of more affordable living is too great, a one-bedroom apartment that would be top of the market in Sharjah is cheaper than a studio in many areas of Dubai. According to Savills report, average high-end apartment rents in prime Sharjah areas range from 18,000 to 35,000 dirhams for studios, 35,000 to 45,000 dirhams for one bedroom, 48,000 to 75,000 dirhams for two bedrooms and 58,000 to 95,000 dirhams for three bedrooms.
And it’s not just renters who are making the move – buyers from countries like India, Germany, Canada and the UK are flocking to Sharjah’s property market, taking advantage of the new ownership laws.
A Balanced View
Of course, Sharjah’s appeal goes beyond affordability. The government has taken a balanced view and implemented measures to keep some affordability while still allowing the market to grow.
For example, new tenants get a 3-year rent freeze, after which landlords can only increase rent every 2 years. This way, residents are protected from the kind of rapid rent increases seen in Dubai, and developers have some flexibility.
A Multiple Choices
And it’s not just Arada that’s making a splash in Sharjah’s real estate market. Eagle Hills, SEE Holding and Alef Group are all in the emirate, offering a range of options for different market segments.
From luxury homes and tourism destinations on Maryam Island to eco-friendly communities with thousands of trees and cycling tracks, Sharjah’s real estate is changing fast to cater to a diverse and demanding customer.
Sharjah’s Future
As Sharjah becomes a viable alternative to Dubai the opportunities are too big to ignore. Property brokers like Betterhomes which opened in Sharjah just 2 years ago are already seeing a 60% increase in sales this year compared to 2023.
But beyond the numbers Sharjah’s appeal is in the lifestyle it offers. More conservative than its flashy neighbour, Sharjah is very family-friendly and has a lower cost of living which can be attractive to those looking for a more sustainable pace of life.
As the UAE’s real estate market changes Sharjah is rising. For those priced out of Dubai’s overheated market this 7,000 year old city may just be the affordable haven they’ve been looking for.
The Challenges Ahead
No change of this size comes without its problems. As Sharjah’s population grows the emirate will need to address issues of infrastructure, traffic and public transportation.
Currently, the lack of public transport options means many residents have to rely on private cars, which causes traffic during peak hours. Solving this problem will be crucial to Sharjah’s long-term sustainability and liveability.
Also while the process of buying property in Sharjah has been simplified in recent years, it still lags behind the experience in Dubai. More work needs to be done to simplify and standardize the process to attract more investors and buyers.
Wrapping up
Despite the problems, the vision for Sharjah is clear: a lively, affordable and culturally rich city that offers a real alternative to the madness and high costs of Dubai. With projects like Aljada , Masaar and Maryam Island coming up this vision is becoming a reality fast.
As Sharjah finds the balance between modern and traditional, affordable and luxury it will be the real showstopper in the UAE’s real estate scene. For those who want a more sustainable pace of life without compromising on quality and amenities, this ancient city might just be the perfect fit.
So whether you’re a family looking for more value for money, an investor looking for untapped opportunities, or just someone who wants to escape the madness of Dubai, Sharjah is open to business. Join the Sharjah revolution and find value and authenticity in the heart of the UAE.
