Sharjah property market report for H1 2019: Prices soften increasing affordability in the family-friendly emirate

After taking a look at the Dubai and Abu Dhabi property price trends for the first half of 2019, it is now time to take a look at the Sharjah real estate market. For this H1 2019 Sharjah real estate market report, our data analysts have compared property prices in Sharjah from H2 of 2018 with property prices in H1 of 2019.

Following the overall trends seen in the other emirates, property prices in Sharjah went down for key areas such as Al Nahda, Al Majaz and Al Taawun for both sales and rentals. Average rental yields for these key neighbourhoods are healthy, offering an average ROI of close to 7% for investors, which is subject to change depending on the specific property type. This has created an optimal environment market for buyers to invest in the Sharjah real estate market. 

Let’s take a closer look at the evolution of property prices in Sharjah for H1 2019.  

AL MAJAZ IS THE MOST POPULAR AREA TO BUY APARTMENTS IN SHARJAH

Property prices in Sharjah for buying apartments in the top five areas

In the first half of 2019, the property prices in Sharjah for apartment sales have declined overall with modest declines within the 2% to 7% range. If we look at how property prices in Sharjah have evolved in the last six months, the steepest fall in average prices for buying apartments in Sharjah is in Al Khan, where the average sales prices for a 1-bedroom apartment fell by 9.5%.

The waterfront community of Al Majaz claimed the top spot and is the most popular area to buy flats in Sharjah for H1 2019. Offering some of the best waterfront properties in Sharjah that are close to numerous recreational hotspots for both adults and children, Al Majaz is the ideal choice for buyers looking to invest in the Sharjah property market. The sales prices to buy apartments in Al Majaz have seen decreases with studios dropping by 3.4% from AED 290k in the last six months of 2018 to AED 280k now. Sales prices for 1 BHK flats in Al Majaz also experienced a noticeable decrease of 7.1% from AED 420k in H2 2018 to AED 390k currently. The 2-bedroom apartments for sale in Al Majaz are currently commanding an average of AED 490k.

Coming in second for the most popular areas to invest in the Sharjah property market is Al Khan. Sales prices for buying studios stand at AED 320k while 2-bed apartments dipped by 2.7% from AED 750k to AED 730k. The only noticeable declines are for the 1-bed flats for sale in Al Khan where prices decreased from AED 500k in H2 2018 to AED 453k now. 

Other popular areas for buying apartments in Sharjah include Al Nahda, Sharjah University City and Al Mamzar. The sales property prices in Sharjah for these areas saw a stable decrease across the board in the first six months of 2019 when compared to the last six months of 2018.

AL MAJAZ OFFERS THE BEST AVERAGE ROI IN SHARJAH FOR APARTMENTS

Investors looking at apartments for sale in Sharjah with good average ROI will be happy to note that the most popular location, Al Majaz offers an average ROI of 6.8%. Property price trends in Sharjah also reveal that the other popular locations like Al Khan, Al Nahda and Al Mamzar offer buyers healthy average rental returns at the 6% mark. 

Al NAHDA SHARJAH IS THE FIRST CHOICE FOR RENTING APARTMENTS IN SHARJAH

Property prices in Sharjah to rents for flats in the top 10 areas

The Sharjah property market has always been popular with tenants. The property price trends for H1 2019 shows that rents are experiencing declines. This presents numerous opportunities for tenants looking to rent affordable apartments in the emirate. The biggest decreases for rents in Sharjah can be seen for apartments in Al Majaz and Al Taawun, where prices dropped between the 10% to 13% range. 

Al Nahda Sharjah, the most affordable neighbourhood in the emirate, ranked as the first choice for tenants looking at flats for rent in Sharjah. There have been modest decreases across the board with average rent prices going down to AED 23k for studios, AED 28k for 1-beds and AED 36k for 2-beds. 

Al Majaz, came second on our list of popular areas for apartment rentals in Sharjah. There have been substantial decreases for all the units here. Rents for studios in Al Majaz dropped by 10.5% from AED 19k in H2 2018 to AED 17k now. Prices for 1-bedroom flats for rent in Al Majaz went down by 13.8% from AED 29k previously to AED 25k in H1 2019. As for the 2-beds, the rents for these units went down by 11.4% from AED 35k to AED 31k. 

Other popular areas to rent flats in Sharjah include Al Taawun, Muwaileh, Al Qasimia, Al Khan, Muwailih Commercial, Abu Shagara, Al Mamzar and Bu Tina. Sharjah property price trends for renting in these popular locations decreased in the first six months of 2019 by 2% to 9%, with only the larger units in Al Taawun experiencing substantial decreases of 13% when compared to the last six months of 2018. Prices for 1-bedroom rentals in Al Taawun dropped from AED 30k down to AED 26k. As for 2-bedroom apartments in Al Taawun the rents went down from AED 44k to AED 38k. 

TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

For H1 2019, the area of Hoshi received the highest interest from investors looking at villas for sale in Sharjah. This residential locality is known for its prime location, being right on the Dubai – Sharjah border and offers a set of large villas that come in units ranging from 3 to 6-bedrooms. According to current Bayut listings, buying prices for the villas in Hoshi start at AED 2.7M. 

Following Hoshi, the neighbourhoods of Sharqan and Al Sabkha ranked second and third respectively for villa sales in this Sharjah real estate market report. Both these localities are just eight minutes away from each other and boast an abundance of family-friendly amenities. Investors looking to buy a villa in Sharqan can expect to lock in on sales prices as low as AED 1.5M. Other areas from the property market in Sharjah that have caught investors’ attention for villas are Al Suyoh, Al Barashi, Al Azra, Al Rahmaniya, Al Yash, Al Gharayen and Al Ghafia. 

Along with being in the list of top areas for villa sales, this time Al Sabkha also emerged as the first choice to rent villas in Sharjah. The area is known for its abundance of amenities and affordable prices. The lowest rents tenants can expect for villas in Al Sabkha is AED 45k.

Ranking second for rental villas in Sharjah is the area of Al Ghafia, which has parks, schools and other amenities conveniently located nearby. The rental prices in the Sharjah property market for villas in Al Ghafia start at AED 35k. Al Barashi is the third most popular for tenants where rents start from AED 85k. Other frequently searched for locations for renting houses in Sharjah are Al Azra, Sharqan, Al Jazzat, Al Hazannah, Al Ramla, Al Qadisiya and Al Fayha. 

Barashi has the best average ROI for villas in Sharjah 

Those looking to invest in villas in Sharjah with a high rental yield should consider Barashi, which offers an average ROI as high as 7.5%. This can change depending on the type of property. Other areas with a high average rental yield in Sharjah include Al Gharayen and Hoshi which boast average ROI of 6.8% and 6.1% respectively. 

Off-plan projects in Sharjah

The off-plan market in Sharjah has been picking up in the last few years as we see more developers enter the market with a variety of projects. When it comes to the most searched for off-plan projects in Sharjah, Maryam Island had the highest interest.

Maryam Island is a waterfront development located within the Al Khan district in Sharjah and features apartment buildings that are minutes away from the beach. As per our listings, the sales prices to buy an apartment in Maryam Island start at AED 354k. 

Other developments that are on the list of popular off-plan projects in the Sharjah property market include Areej Apartments, East Village and MISK Apartments – all of which are part of the Aljada masterplan. Al Mamsha, which is considered to be one of the top Sharjah off-plan projects for foreigners was also highly searched for by investors.

That concludes this real estate market analysis of property prices in Sharjah for H1 2019. The emirate remains affordable as ever thanks to softening prices.

Another emirate following a similar trend as Sharjah is Ajman. Check out the Ajman H1 2019 market report for further details.

FORECAST FOR H2 2019

Commenting on the trends seen so far, Haider Ali Khan, the CEO of Bayut said:

“The price changes in the last six months for properties in Sharjah and Ajman follow the same trend we have observed for Dubai and Abu Dhabi. It is a consumer led market in both emirates, with competitive prices for sales as well as rentals. Handovers in key areas like Al Nahda, Al Taawun and Ajman Downtown, reflects increased investor interest which is clearly evident from the high volume of searches conducted by users on Bayut as well. A growing market size is always a good sign and Sharjah and Ajman are also known for the healthy ROI both emirates offer when compared with other similar cities across the world.”

For those who would like to keep up-to-date about the property prices in the other emirates, check out the H1 2019 market reports for Dubai and Abu Dhabi on the Market Trends section. 

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