Sharjah Real Estate Market Forecast 2026

You’ve likely heard about the incredible growth and opportunity in Dubai’s real estate market. But what about its neighbor Sharjah? This often-overlooked emirate holds immense potential for property investors and end-users in the coming years.

As the third largest and most populous emirate in the UAE, Sharjah offers affordability and stability that any place can’t match. Its prices are attractive, yields are strong, and market volatility is lower. Crucially, Sharjah also provides a high quality of life, world-class infrastructure and a thriving economy.

With its strategic location, business-friendly regulations, and ongoing initiatives to boost tourism, the Sharjah Real Estate Market is poised for prosperity. As an investor or homebuyer, you’d be wise to have this promising emirate on your radar.

Let’s explore the key factors indicating a positive outlook for real estate in Sharjah up to 2026 and beyond:

Strong Performance in Recent Years

Sharjah’s property market has shown remarkable resilience and steady growth despite the global economic uncertainty of recent times. This establishes a strong foundation for future expansion.

In 2025, Sharjah Real Estate started the year with unprecedented momentum. Transaction volumes in January surged to AED 7 billion, a nearly 80% jump from January 2024 (AED 3.9 billion). Transaction numbers more than doubled to 11,116 deals compared to 5,412 in January 2024.

This explosive activity continued throughout 2025. By year-end, Sharjah’s real estate market hit a historic high with total transaction values reaching AED 65.6 billion—a remarkable 64.3% increase from the previous year. The total number of real estate transactions across the emirate reached 132,659 in 2025, up 26.3% year-on-year.

What does this performance tell you about the future? Simply, it demonstrates the investor confidence and demand that should take Sharjah’s real estate higher through 2026 and beyond.

What are the Key Factors leading to Sharjah Real Estate 2026 Growth?

Let’s see the key factors behind Sharjah’s 2026 growth.

Government Support

A key advantage Sharjah holds is the government’s support for the real estate. Initiatives, incentives, and development packages have boosted the property market’s growth in recent years.

The government’s progressive policies, increased economic integration, and rising foreign investment in strategic industries continue driving growth. Sharjah also provides rebates on construction and development costs, making projects hugely attractive for developers and investors.

Expanding Population and Economy

Like Dubai, Sharjah has a fast-growing population and an expanding economy. These key demographic and economic growth drivers fuel real demand for property.​

Sharjah’s current population is approximately 1.94 million as of 2026, having grown by 34,690 in the last year, a 1.82% annual change. This huge influx of residents creates organic demand for homes and commercial space.​

Meanwhile, the emirate’s nominal GDP now exceeds AED 145 billion. As the economy diversifies from energy into sectors like transport, logistics and manufacturing, associated real estate needs will rise.

Economists forecast Sharjah’s GDP growth to reach between 6.5% to 7.5% in 2025-2026. The automotive industry and vehicle parts trading account for 24% of the emirate’s economy, with agriculture at 19%, and manufacturing at 17%.

Basically, Sharjah has the demographics and economic expansion needed to support a thriving real estate sector into the future. These factors provide a layer of insulation from global headwinds.

Maturing To A Stable Market

Not long ago, Sharjah was viewed as the affordable option next to Dubai. But today, Sharjah is becoming a mature, stable market.

Property prices in Sharjah remain relatively low compared to Dubai. The average price per square foot for villas in Sharjah currently is around AED 600. Studio apartments in areas like Muwaileh start from AED 3,600 per month.

However, sustained demand is starting to drive values higher, especially in prime areas. Market analysts forecast Sharjah property prices to increase by approximately 3.5% to 5% over the next 12 months. Rental yields also continue exceeding Dubai’s at about 8-10% in Sharjah, depending on location. This income potential is a key drawcard for investors.

In essence, Sharjah is transitioning from a fledgling market to a strong one and the growth prospects over 2026 look very promising.

Booming Tourism Prospects

While Dubai keeps the tourism limelight, Sharjah is a rising star. The emirate recorded a remarkable 38% growth in tourism performance in 2025. In the first quarter of 2025 alone, Sharjah welcomed about 486,000 guests, a 13% annual increase. Major tourism investments in infrastructure, accessibility, and sustainability are contributing directly to growth. The Kalba Road expansion and upgrades to major transport corridors have significantly improved connectivity across Sharjah.

As tourism expands, demand for hotels, resorts, entertainment and retail complexes will surge. This will catalyze development and transactions across commercial and mixed-use real estate over the next few years. In short, Sharjah’s travel industry boom is a key demand driver for the emirate’s property market through 2026. Investors and developers are eager to capitalize on this high-growth sector.

Thriving Commercial Real Estate Market

Beyond its residential allure, commercial real estate is thriving in Sharjah. It spans offices, warehouses, retail and more. The increasing shift to warehouses and light industrial units is attracting companies from Dubai.

Retail and mixed-use complexes are also on the rise, as developers leverage Sharjah’s large population and visitor numbers. The total number of sales transactions reached 24,238 in the first nine months of 2025, registered across 239 zones, covering over 150 million square feet of developed land.

New zones like Sharjah Research Technology and Innovation Park will also magnetize commercial real estate development and investment as the economy evolves.

The bottom line is that attractive yields, low costs and growth prospects make commercial assets in Sharjah a wise long-term bet.

Rising Developer Activity and Investments

Robust demand and positive projections have sparked a flurry of new projects by major local and international developers. In 2025, Sharjah recorded 38 newly registered real estate development projects compared to 24 in 2024. The additions include new launches and expansions across residential, commercial, and industrial segments.

During the first nine months of 2025, 14 new development projects were registered across 11 key zones, including new residential communities, commercial complexes, and industrial developments.

These massive developments include Tiger Al Ghaf Tower, Aryam Villas at The View Island, Arada Sedra, Arada Laura and others. Major players like Aldar, Eagle Hills and Alef Group have equally ambitious projects in the pipeline.

These massive developments include Tiger Al Ghaf Tower, Aryam Villas at The View Island, Arada Sedra, Arada Laura and others. Major players like Aldar, Eagle Hills and Alef Group have equally ambitious projects in the pipeline.

Such intense developer activity confirms that major institutions see strong fundamentals and profits ahead in Sharjah real estate over the next 5 years.

Global Investor Interest

Sharjah is gaining increasing attention from foreign institutional investors too, especially from Asia and Europe.

In the first nine months of 2025, investors from 121 different countries participated in Sharjah’s market. UAE nationals remained the largest group with AED 21.1 billion invested across 28,561 properties. They were followed by non-Arab, non-GCC investors whose assets were valued at AED 13.1 billion across 6,116 properties.

Arab nationals ranked third with AED 7.5 billion invested in 5,855 properties, while GCC nationals (excluding Emiratis) invested AED 2.6 billion across 1,457 properties.

Investment By Nationality

• Indians led foreign investment with AED 5.9 billion (21.7% of total).
• Syrians invested AED 1.9 billion.
• Pakistanis invested AED 1.47 billion.
• Jordanians invested AED 1.37 billion.
• Saudis invested AED 1.26 billion.
• Egyptians invested AED 1.12 billion.

Due to its high yields, lower valuations and future growth trajectory, global investors are flocking to Sharjah. Expect more overseas entrants in the coming years as institutions diversify their assets and citizens seek overseas homes.

Emerging Trends to Watch in Sharjah Real Estate 2026

Beyond the major demand drivers discussed, Sharjah’s property market of tomorrow will be shaped by some key emerging trends to monitor:

Proptech Advancements

Like Dubai, Sharjah is embracing property technology to improve efficiencies and enhance customer experience. Proptech innovations around areas like virtual/augmented reality, digital transactions, artificial intelligence and big data analytics will transform the market. Tech-savvy investors and buyers should prepare to leverage these new capabilities.

Co-Living and Hybrid Asset Classes

Co-living projects are taking off in Sharjah. It caters to young professionals seeking affordable, convenient housing. Hybrid asset classes like live-work developments are also rising in popularity. Such creative mixed-use concepts will proliferate as developers get innovative.

ESG Investing

Environmental, social and governance (ESG) principles are gaining prominence in real estate investing. Developers and investors will increasingly emphasize sustainability, smart designs and community impact. Properties with green credentials and strong ESG commitment may enjoy a competitive edge.

Health and Wellness

After COVID-19, health and wellness have become top priorities. Demand will grow for mixed-use projects with amenities like fitness centers, clinics and green spaces that promote healthy living. Properties that ignore wellness factors may struggle to attract investors and residents.

Sharjah Real Estate Prices and Rents Trends Analysis

No market analysis is complete without projecting future pricing trends. So what is the outlook for values and rents across Sharjah’s residential and commercial real estate segments?

Based on 2025 performance and market analyst forecasts, property prices are expected to increase by approximately 3.5% to 5% over the next 12 months. Residential rents are forecast to remain broadly flat in 2026, while office rents are projected to rise by around 15% due to supply constraints.

In prime residential areas, studio apartment rents currently start from around AED 3,600 per month in areas like Muwaileh. With moderate growth expected, these could reach AED 3,800-4,000 by late 2026. Two-bedroom apartments renting for AED 60,000-70,000 today may see modest increases to AED 65,000-75,000.

Sale prices should experience slightly higher gains following the 3.5-5% forecast trajectory. With villas currently averaging AED 600 per square foot, prime properties could appreciate to AED 620-630 per square foot by 2026.

For commercial real estate, office rents are forecast to rise by approximately 15% in 2026 due to supply constraints in prime markets. Grade A office spaces could see rents climbing from roughly AED 70-80 per square foot to AED 80-92 per square foot.

Table: Sharjah Rental and Price Growth Projections by 2026

The Road Ahead for Sharjah Real Estate

Based on its remarkable run in 2025, with transaction values reaching a historic AED 65.6 billion and supportive demand drivers, Sharjah’s property market appears well-positioned for the next few years. Investor confidence, developer activity registering 38 new projects, and foreign interest from 121 nationalities all signal positive momentum.

Yet it would be unrealistic to expect unlimited growth without challenges. Potential risks such as rising interest rates, supply-demand imbalances, or global economic headwinds could cause temporary road bumps. But Sharjah’s foundations seem robust enough to handle them.

On the whole, the emirate’s real estate story through 2026 looks overwhelmingly optimistic. With a growing population approaching 1.94 million, GDP growth forecasted between 6.5-7.5%, and tourism recording 38% growth in 2025, this is the time to plant your flag and enjoy the rewards ahead. But with competition heating up, selectivity and prompt action will be key.

As an investor or end-user, partnering with a reputable property consultant is your smartest move. Their insights can help you identify value, find hidden gems and maximize Sharjah’s potential as the next big thing in UAE real estate.

Are you ready to capitalize? Sharjah awaits.