Bayut & dubizzle’s Sharjah Annual Market Report for 2020: Affordable prices present ideal opportunities to tenants and buyers

• Buying Apartments
• Renting Apartments
• Villas for Rent and Sale
• Off-plan Projects

As we ring in the new year, it’s time to reflect on the performance of the Sharjah real estate market during 2020. To understand how the property market adapted to the ever-changing landscape during the year, we have compared property prices from 2019 with those from 2020 for Bayut & dubizzle’s annual Sharjah property market report.

Consumer interest in the Sharjah real estate market in 2020 shows that areas such as Al Majaz, Al Khan and Al Nahda have continued to attract both tenants and investors thanks to their excellent connectivity and family-friendly amenities. Other areas such as Al Qadisiya and Barashi have also emerged to the forefront, offering healthy projected ROIs of more than 6%.

To assess the performance of the top areas for sale, we have mentioned the average price per square foot. With rental areas, we have evaluated the prices based on the asking prices of each type of unit.

Let’s take a look at the overview of the real estate prices in Sharjah in our annual Sharjah Real Estate Market Report for 2020:

PROPERTY PRICES IN SHARJAH FOR BUYING APARTMENTS IN 2020

As per the trends observed by our data team at Bayut & dubizzle, Al Majaz has retained its standing as one of the most popular areas to buy apartments in Sharjah. Al Khan, Al Nahda and Muwaileh have also held the attention of potential homebuyers.

AL MAJAZ IS THE MOST SEARCHED AREA FOR BUYING APARTMENTS IN SHARJAH

The waterfront district of Al Majaz has been the top choice for buyers in Sharjah in 2020. Overlooking the Khalid Lagoon, the area is one of the most well-regarded in the emirate and attracts a high number of local and GCC investors. Compared to 2019, the price per square foot for flats in Al Majaz has reduced by 6.5% to AED 371 in 2020. The average price of 2-bedroom apartments in Al Majaz is AED 509k while you can buy 3-bed flats in Al Majaz for AED 733k. Coupled with the competitive prices, the consistent demand from tenants has also resulted in this area remaining popular with investors keen on purchasing property in the cultural capital of the UAE.

Al Khan has been the second-most popular choice among buyers searching through our combined inventory of flats for sale in Sharjah. The area is easily accessible from Dubai and offers a luxury waterfront lifestyle in the city. The price per square foot for flats in Al Khan has become more attractive, reducing by 11.9% since 2019 to average at AED 425 in 2020. While 1-bedroom flats in Al Khan have averaged at AED 398k, the asking price for 2-bed apartments in Al Khan have also been competitive at AED 704k. Investors can also look for 3-bed apartments in Al Khan averaging at AED 971k respectively.

Al Nahda has secured the third spot in the list of the most sought-after areas with apartments for sale in Sharjah. The cost of flats in Al Nahda declined from AED 440 in 2019 to AED 423 in 2020. Investors can buy 1-bedroom apartments in Al Nahda at an average price of AED 401k. For those looking at bigger units, 2 and 3-bedroom flats in Al Nahda can be bought at an average price of AED 536k and AED 969k.

Offering easy access to Dubai, Muwaileh has been another popular area to buy apartments in the city. The price per square foot of the flats in Muwaileh has averaged at an affordable AED 423 in 2020. The average price of 1-bedroom apartments in Muwaileh is AED 587k, while 2-bed flats in Muwaileh are available at AED 967k.

Considering these property prices of apartments in Sharjah, it is safe to say that the Sharjah property market has witnessed a shift in demand from consumers towards bigger units in the last year.

AL MAJAZ 3 IS THE MOST POPULAR WITH BUYERS FOR APARTMENTS IN AL MAJAZ

Al Majaz 3 has emerged as the most popular sub-community for buyers looking at apartments in Al Majaz. The cost of apartments in Al Majaz 3 starts at AED 400k as per prices advertised on Bayut. Similarly, other sub-communities such as Al Majaz 1 and Al Majaz 2 have also received healthy interest from buyers and investors.

AL QADISIYA OFFERS GOOD ROI FOR APARTMENTS IN SHARJAH

Al Qadisiya has emerged as the most investor-friendly neighbourhood in Sharjah. The family-friendly community offers the highest projected ROI of 11.3% based on expected rental yields for apartments for sale in Sharjah. Other neighbourhoods such as Al Gharb, Al Majaz, Al Taawun, Al Qasimia and Al Qasba have also shown great potential for healthy rental yields, exceeding 6%.

PROPERTY PRICES IN SHARJAH TO RENT FLATS IN 2020

AL NAHDA IS THE TOP AREA TO RENT APARTMENTS IN SHARJAH

Al Nahda has emerged as the most popular choice with tenants searching for rental apartments in Sharjah. Located on the Sharjah-Dubai border, this area has garnered the attention of those who have to commute frequently between the two emirates. Compared to 2019, the rents of 1-bedroom and 2-bedroom apartments in Al Nahda have shown moderate declines, ranging between 6% to 7.5% respectively. The average rent of 1-bedroom apartments in Al Nahda Sharjah has been highly competitive at AED 25k, while 2-bed flats in Al Nahda Sharjah have averaged at AED 33k in 2020.

Al Majaz has secured the second spot in the list of the most popular areas to rent apartments in Sharjah. In comparison to 2019, the rent of studios in Al Majaz has been AED 17k, showing a decline up to 5.6%, while 1-bedroom apartments for rent in Al Majaz have been available for an average price of AED 25k, a slight decrease of 3.8%. On the other hand, 2-bedroom units in Al Majaz have shown no change, averaging at 34k in 2020.

Tenants looking for rental flats in Sharjah have also shown an inclination towards Muwaileh, a bustling neighbourhood located on the outskirts of the city. The primary reason for the tenants’ interest in the locality could be the area’s proximity to Sheikh Mohammed Bin Zayed Road (E311), one of the major highways of the UAE.

The rent of studios in Muwaileh has averaged at AED 12k, decreasing up to 14.3% as compared to 2019. Similarly, the average rent of 2-bedroom apartments in Muwaileh has been AED 33k, following a reduction of 10.8%.

Apart from these areas, Muwailih Commercial, Al Qasimia, Al Taawun, Al Khan and Abu Shagara have also attracted tenants to rent apartments in Sharjah.

SAHARA TOWERS IS THE MOST POPULAR WITH TENANTS FOR APARTMENTS IN AL NAHDA

Tenants who have shown interest in apartments in Al Nahda have mainly searched for units in the high-rise residential complex — Sahara Towers. Spread over six buildings, the flats for sale in Sahara Towers offer spacious accommodation, gym and swimming pool facilities. The rent of flats in Sahara Towers start at AED 30k, as per current listings on Bayut.

Other buildings that are popular in Al Nahda include Zubaidi Building, Al Zain Tower, Orchids Tower Al Nahda and Al Nahda Complex Towers.

TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

HOSHI IS THE MOST POPULAR COMMUNITY WITH VILLAS FOR SALE IN SHARJAH FOR 2020

In 2020, Hoshi has remained the most desirable area for those searching for houses for sale in Sharjah. This quaint, serene neighbourhood is located close to the Dubai-Sharjah border and offers good connectivity to those who live in Sharjah and work in Dubai.

The average price of 3-bedroom villas in Hoshi stands at AED 1.8M, while the average asking price of 4-bedroom houses in Hoshi is AED 2.2M. For those looking at larger units, the 5-bedroom villas for sale in Hoshi can be bought at an average price of AED 3.2M. Hoshi also offers 6-bedroom houses in Sharjah for AED 4.3M on average.

Another area that has been constantly attracting consumer interest among investors is Al Rahmaniya. Divided into eight sub-communities, this family-friendly neighbourhood offers an abundance of options and access to some of the most significant landmarks in the city.

The average price of 3-bedroom villas in Al Rahmaniya is AED 1.3M, while 4-bedroom houses in the community are available for a slightly higher average of AED 1.8M. Investors who are more inclined towards bigger units can also look into buying 5-bedroom houses in Al Rahmaniya, which average at AED 2.8M.

The upscale community of Sharqan has also garnered attention from those looking to buy villas in Sharjah. The average cost of 4-bedroom villas in Sharqan is AED 1.6M. If you have a bigger budget, the more luxurious 5-bedroom houses in Sharqan are available at AED 2.6M.

Other areas that have equally appealed to those interested in buying villas in Sharjah include Muwaileh, Al Noaf, Al Azra, Al Ghafia, Al Gharayen and Al Sabkha.

BARASHI HAS THE HIGHEST ROI FOR VILLAS IN SHARJAH

Barashi, with an impressive ROI of 6.2%, has emerged as one of the best areas in terms of projected rental yields. Boasting the second-highest ROI of 5.2%, Hoshi and Al Sabkha have also continued to offer healthy returns in 2020.

SHARQAN IS THE MOST POPULAR AREA TO RENT HOUSES IN SHARJAH FOR 2020

Sharqan has remained the most sought-after area to rent houses in Sharjah. This is not surprising considering the fact that the area is close to an array of schools, restaurants, clinics and beaches which all contribute to its immense popularity among tenants. The average rent of 3-bedroom houses stands at 71k while 4-bedroom houses for rent in Sharqan are available at AED 84k. Tenants can also find a good inventory of 5-bedroom villas in Sharqan, averaging at AED 107k.

The well-connected, family-friendly community of Al Sabkha has also been a favourite among tenants in Sharjah. The area comprises reputable schools and clinics and offers easy access to Ajman. You can rent houses in Al Sabkha at a starting price of AED 18k, as per Bayut’s current listings.

Other communities that have generated higher demand from the tenants include Barashi, Al Azra, Al Ghafia, Al Jazzat, Halwan Suburb, Al Qadisiya and Al Falaj.

TOP OFF-PLAN PROJECTS IN SHARJAH

Sharjah off-plan market has been constantly making waves in the UAE’s real state sector. Nasma Residences in Al Tai has gained immense popularity as one of the top off-plan projects in Sharjah. Nestled in the heart of Sharjah, the project has set new standards for urban living in the emirate. Promising excellent amenities and a lush-landscaped area, Nasma Residences currently has quite a few villas available for an off-plan purchase, whilst others are still being released.

MISK Apartments in Aljada has been the second-most popular off-plan project among homeseekers in Sharjah. The project promises modern interiors, different layouts, and an impressive array of amenities. Once completed, the project will offer residents awe-inspiring views and direct access to a hot and happening leisure destination in the UAE – Madar, Aljada. While some flats in MISK Apartments have been handed over, others are still under-development.

Overlooking the azure waters of the Arabian Sea, Maryam Island in Al Khan is another highly-anticipated off-plan project in Sharjah. The units in Al Maryam are being partially handed over.

Potential investors searching for other off-plan developments in Sharjah can also consider Al Suyoh 7 in Al Suyoh, Blue Bay Walk in Sharjah Waterfront City, Al Mamsha in Muwaileh and Terhab Hotel & Residence in Al Taawun.

Commenting on the trends the CEO of Bayut and dubizzle and Head of EMPG, MENA said: 

“The UAE as a whole has been through an unprecedented year and Sharjah and Ajman have also not remained immune to the impact of the prevailing market conditions.

With the market being as price sensitive as it currently is, prospective tenants and buyers have shown a lot of interest towards the more competitively priced properties in these emirates.

While our overall traffic has exceeded 7 million sessions in a single month at the end of 2020, the traffic for properties in both Sharjah and Ajman has also been growing across the year on both Bayut & dubizzle by over 20%.”

That brings an end to our Sharjah real estate market report for 2020. If you’d like to know the popular real estate trends in other emirates, check our year-end sales report of Dubai or Abu Dhabi rental market report for 2020.

Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut & dubizzle, and are not representative of actual real estate transactions conducted in Sharjah.