Sharjah Real Estate Market Report Q2 2024

As the UAE's most affordable and high-growth market, Sharjah certainly has some good offers for property investors and end-users. So, it's important to stay up-to-date on the latest market trends and statistics.

Let’s explore the performance of Sharjah's property market in H1 2024 to make an informed investment decision.

Strong Start in January 2024

January 2024 kickstarted the year on a high note for Sharjah’s real estate market. According to a report by Economy Middle East, the trading volume reached an unprecedented AED3.9 billion ($1.06 billion) during the month. This marked a substantial 95% increase compared to January 2023’s figure of AED 2 billion.

The number of transactions also surged remarkably,reaching 5,412 in January 2024 versus 2,999 in January 2023. This immediate spike in activity indicates investors' growing interest in Sharjah real estate locally and globally.

Sales transactions accounted for 16.3% of the total transactions in January 2024, amounting to 879 transactions. Mortgage deals represented 5.3% of the transactions, totaling AED 548.1 million. The remaining 78.4% were other types of property transactions.

The traded assets spanned residential, commercial, industrial and agricultural properties across 106 different areas in Sharjah. This highlights the diversity of real estate available to investors in the emirate. 358 land plots were traded along with 282 built-up land transactions and 239 unit sales in towers.

In terms of top areas, Muwailih Commercial led for number of sales transactions with 122 deals. For trading volume, Muwailih Commercial also topped at AED 164.1 million, followed by Al Sajaa Industrial area with AED 152.5 million.

So in summary, January saw unprecedented highs for Sharjah Real Estate in terms of both trading value and volume. Investors demonstrated confidence in the market across a range of asset classes.

Momentum Continues into February

Sharjah’s property market sustained its strong performance into February 2024. According to a report by Economy Middle East, the total real estate trading volume reached AED3.1 billion ($844 million) during the month. The number of transactions also remained high at a total of 4,458 deals across the emirate. These robust figures indicate that real estate in Sharjah continued to attract substantial interest from investors even after the active start to the year.

Sales transactions made up 23.5% of the February total, amounting to 1,048 transactions. Mortgages represented 8% of the deals, valued at AED 581.4 million. The remaining 68.5% were other types of transactions.

The exchanged assets encompassed residential, commercial, industrial and agricultural properties in 101 different areas across Sharjah. 446 land plots were traded along with 432 tower units and 372 built-up land transactions. In terms of top neighbourhoods, Muwailih Commercial led again with 213 sales transactions. For trading volume, Muwailih Commercial remained first with AED 382 million.

So in essence, the positive momentum in Sharjah’s property market continued into February, with high levels of investor interest and trading activity. Total values and volumes may have slightly decreased from January’s peaks but remained very robust.

AED3.1 Billion in Transactions for March

The positive trend for Sharjah real estate extended into March 2024, as reported by Sharjah24. The total trading volume for the month reached AED3.1 billion, with 2,606 transactions completed.

Sales transactions accounted for 32.1% of the total, amounting to 837 deals. Mortgages represented 12.8% of transactions, valued at AED1.1 billion. The remaining 55.1% were other property transactions.

Assets exchanged included residential, commercial, industrial and agricultural real estate across 97 different areas in Sharjah. 350 land plots were traded along with 247 built-up properties and 240 tower units.

For the number of sales transactions, Muwailih Commercial led again with 156 deals. In terms of trading volume, Muwailih Commercial also topped at AED183.2 million.

So March sustained the positive momentum, with trading values and volumes remaining robust in Sharjah’s real estate sector. The market displayed resilience, maintaining relatively high levels of activity.

AED462.83 Million in April Transactions

Sharjah’s property market showed some signs of slowing in April 2024 but still saw reasonably strong activity. As reported by Economy Middle East, the total real estate trading volume for April reached AED1.7 billion ($462.83 million).

The number of transactions decreased to 1,632 in April compared to the previous months but still represented a healthy deal flow. This points to sustained investor interest in Sharjah real estate.

Sales transactions accounted for 35.5% of the total, amounting to 579 deals. Mortgages made up 12.1% of transactions, valued at AED402.2 million ($109.5 million). The remaining 52.4% were other types of deals. Assets traded spanned residential, commercial, industrial and agricultural real estate in 89 different areas across the emirate. 253 land plots were exchanged along with 185 tower units and 141 built-up land transactions.

So in summary, April saw a dip in values and volumes compared to Q1 2024 but still demonstrated decent activity and interest in Sharjah property. Investors remained engaged across a range of asset classes.

Resurgence in May with AED4 Billion

May 2024 marked a resurgence in Sharjah’s real estate market, as highlighted in a report by Gulf Property. The total monthly trading volume leapt to AED4 billion, representing massive 135% growth from April’s figure of AED1.7 billion.

The number of transactions also jumped remarkably, reaching 9,454 compared to just 1,632 in April. This tremendous rise signals renewed strong investor appetite for Sharjah real estate.

Sales transactions accounted for 13.2% of the May total, amounting to 1,250 deals. Mortgages made up 6.1%, valued at AED1.4 billion. The remaining 80.7% were other transaction types.

Assets traded included 446 land plots, 432 tower units and 372 built-up properties across residential, commercial, industrial and agricultural real estate.

For both number of sales transactions and trading volume, Muwailih Commercial led the way again with 280 deals and a value of AED 399.7 million.

In summary, May saw an explosive rebound in Sharjah’s property market. Total values and volumes surged as investor interest spiked again after April’s lull.

Key Drivers of Growth

Looking at the market’s performance in H1 2024, what are the key factors driving this robust activity and interest in Sharjah real estate?

Strategic Government Decisions

One major driver has been the strategic decisions and smart policies implemented by the Sharjah government to boost the real estate sector. Initiatives like economic stimulus packages, subsidies, and flexible visa programs have bolstered the market. The transparent and investor-friendly business environment has also been a catalyst.

Growing Economy and Population

Sharjah has a rapidly growing economy and population. With economic expansion comes rising demand for real estate across sectors. The emirate’s population growth, driven by strong job creation, also generates a need for more residential properties. This organic demand acts as a key driver.

Competitive Advantages

Sharjah enjoys competitive advantages like affordable prices and attractive rental yields compared to neighbouring Dubai. Investors are capitalising on these advantageous conditions, leading to rising activity. The relative stability and lower volatility in Sharjah’s market compared to Dubai also appeals to investors.

Increasing Global Interest

Sharjah is gaining increasing global interest and foreign investment in real estate. International investors are drawn by the emirate’s world-class infrastructure, thriving industries, and investment-friendly environment. The ability to freely repatriate profits is an added allure for foreign investors.

Growth of Industries

The ongoing growth and expansion of manufacturing, logistics, transportation, and other industries in Sharjah catalyse demand for commercial and industrial real estate. As these sectors grow and influx investments, activity in the commercial and industrial segments will rise.

Tourism Prospects

Sharjah’s initiative to boost tourism by promoting cultural attractions and ecotourism also enhances real estate demand. Growth of tourism leads to increasing need for hospitality properties. This drives transactions and development in the hotel, resort and leisure sectors.

Positive Outlook for H2 2024

If the performance of H1 and positive outlook were anything to go by, Sharjah's real estate looks primed for expansion and growth in the second half of 2024. According to industry experts, the major factors that would foretell a bullish H2 for the emirate's property sector are as follows :

Economic Growth Prospects

Government estimates indicate that the economy of Sharjah is most likely to expand in 2024. Growth and diversification of the economy would continue to be the major stimulus to the demand in the real estate sector.

Government Stimulus

The Sharjah government is likely to sustain measures stimulating the property sector like subsidies, incentives and flexible visa rules for the rest of 2024. This policy support will maintain positive momentum.

Growing Tourism Appeal

Sharjah’s rising global appeal as a cultural and eco-tourism destination will bring greater tourism revenues and real estate development in H2 2024. The sector’s growth will spur transactions.

Enhanced Infrastructure

The emirate will see new infrastructure upgrades like roads, bridges and rail links in H2 2024 that enhance connectivity and accessibility. This will unlock new real estate potential.

Global Interest

Ongoing reforms and policies to attract foreign investment should drive greater capital inflows for real estate from international investors in H2 2024.

Market Maturity

As Sharjah’s property market matures, it will gain greater stability. This makes it more enticing for domestic and foreign investors versus volatile Dubai.

Great Time to Invest in Sharjah

Given the market’s stellar performance in H1 2024 and bright outlook for H2, now seems an opportune time to invest in Sharjah real estate as an end-user or investor. Here are tips to capitalise on the ongoing upcycle:

• Consider buying established prime properties that offer good rental income potential. The demand for high-quality housing and commercial space will continue rising.

• Land in areas with strong development prospects could appreciate handsomely in value. Identify sites aligned with future urban expansion plans.

• Commercial assets like offices, warehouses and retail spaces in high-growth sectors make solid investments, as their demand is set to grow.

• Seek attractive pre-launch deals from reputable developers for upcoming projects in prime locations for huge upside.

• For end-users, negotiate hard with sellers for homes in desirable communities as prices are still relatively affordable.

Work with a real estate consultant to identify discounted distressed assets from motivated sellers for big bargains.

Conclusion

In closing, Sharjah’s real estate market outperformed in H1 2024, and signs point to continued prosperity in H2. For investors and end-users, now is arguably the best time to capitalise on the emirate's property sector before it potentially overheats. Do your due diligence, be selective in your approach, and work with a professional; substantial rewards await.