Q3 2019 Sharjah Real Estate Market Report: Prices remain attractive for buyers and tenants in the family-friendly emirate

Following detailed reports about the performance of the Dubai and Abu Dhabi markets in Q3 of 2019, it’s now time to take a look at the transition of property prices in Sharjah in the last three months.

For a more accurate representation of price changes, the report compares the average price per square foot for an area between Q2 2019 to Q3 of 2019, to analyse sales trends for apartments and villas in Sharjah. These prices are subject to change based on the developer, amenities, location of the property and other factors. For rental properties, this Sharjah real estate market report compares the average cost for individual unit types between the two quarters in popular areas of the emirate.

Price Trends Seen in the Real Estate Market in Sharjah for Q3 2019

In the third quarter of 2019, the sales and rental prices for apartments in Sharjah have followed the trends seen in the first half of the year. Property prices in Sharjah remain affordable for tenants, potential homeowners and investors looking at flats in the popular neighbourhoods.

When looking at the rental market, family-friendly neighbourhoods such as Al Nahda and Al Qasimia experienced decreases between 3% – 8%, which has contributed to their continued popularity with tenants.

However, the rents in Sharjah for popular waterfront areas such as Al Khan, Al Majaz and Al Mamzar, have experienced increases between 5 – 9% favouring buyers/investors looking at buy-to-let properties.

For apartment sales, the average price per square foot in the popular neighbourhoods witnessed declines ranging from 8-12%. But since prices in Sharjah are lower than those in Dubai, this drop is in line with rates we have observed from the beginning of 2019.

In terms of popularity, Al Majaz is the preferred area for both buying and renting flats in Sharjah. Incidentally, Al Majaz also offers investors a good ROI of 7.7%. As for the villas in Sharjah, the area of Hoshi was the most popular with home buyers and investors, while Al Azra emerged as the most popular choice for renters. Investors looking for a good rental yield for villas should note that Barashi offers an average ROI of 6.7%.

Read on for an in-depth report of the evolution of property prices in Sharjah in the third quarter of 2019.

AL MAJAZ REMAINS THE MOST POPULAR CHOICE FOR BUYING APARTMENTS IN SHARJAH

PROPERTY PRICES IN SHARJAH FOR BUYING APARTMENTS IN Q3 2019

In the third half of 2019, the waterfront area of Al Majaz retains its standing as the most sought-after area for buying apartments in Sharjah.

The average price per square foot and overall cost for each unit has remained relatively stable. The prices to buy apartments in Al Majaz continue to remain affordable, with the price per square foot averaging at AED 363. Those looking to purchase studios in Al Majaz can expect to pay an average of AED 280k. As for the 1 and 2 bedroom apartments, sales prices average at AED 360k and AED 500k respectively.

Taking the second spot in terms of popularity for apartment sales in Sharjah is another prime waterfront community, Al Khan. The average price per square foot in Al Khan experienced a decline of 8.63% from AED 452 in Q2 2019 to AED 413 now. The average cost of studios for sale in Al Khan is AED 366k, and buyers can expect to part with an average of AED 435k for 1-bedroom apartments and AED 766k for 2-bedroom flats in the area.

The affordable areas of Al Nahda Sharjah and Al Taawun were the next two popular neighbourhoods for buying flats in Sharjah. Bayut’s data on property prices in Sharjah reveals that these two neighbourhoods reported noticeable declines between the 11-12% for the average price per square foot.

The average price per square foot in Al Nahda went from AED 487 in Q2 2019 to AED 429 now. As for the average rents for flats in Al Nahda Sharjah, studios went from AED 275k in Q2 2019 to AED 235k now, 1-beds dropped from AED 445k to AED 350k and 2-beds went from AED 660k to AED 655k.

In Al Taawun average price per square foot went down AED 405 to AED 362. Meanwhile, prices to rent 2-beds in Al Taawun have dipped to AED 515k from AED 550k in Q2 2019.

Rounding up the list of popular areas with flats for sale in the emirate is Sharjah University City. Here the average price per square foot saw a marginal increase of 4% from AED 942 to AED 985 now, which could be attributed to recent off-plan deliveries. However, the average cost for the flats in Sharjah University City remains fairly stable, averaging at AED 280k for studios, AED 399k for 1-beds and AED 790k for 2-beds.

Al MAJAZ OFFERS A GOOD ROI FOR APARTMENTS IN SHARJAH

Bayut’s report of property prices in Sharjah reveals that Al Majaz offers the best average rental returns of 7.7%. This is closely followed by the apartments in Al Taawun, which also have an average rental yield of 6.9%. Al Khan also offers a healthy ROI for apartments at 6.7%.

While these numbers reflect the overall average ROI for the area, the specific ROI is dependent on the property type you own.

AL MAJAZ MAKES ITS WAY TO THE TOP AREA TO RENT APARTMENTS IN SHARJAH

PROPERTY PRICES IN SHARJAH TO RENTS FOR FLATS IN Q3 2019

POPULAR AREAS	STUDIOS Avg. Yearly RentChange from Q2 2019	1 BED APTS Avg. Yearly RentChange from Q2 2019	2 BED APTS Avg. Yearly RentChange from Q2 2019
Al Majaz	STUDIOS Avg. Yearly RentChange from Q2 2019 17,999 5.9%	1 BED APTS Avg. Yearly RentChange from Q2 2019 28,000  N/A	2 BED APTS Avg. Yearly RentChange from Q2 2019 37,000  N/A
Al Taawun	STUDIOS Avg. Yearly RentChange from Q2 2019 19,999  N/A	1 BED APTS Avg. Yearly RentChange from Q2 2019 26,000 4.0%	2 BED APTS Avg. Yearly RentChange from Q2 2019 37,000 2.8%
Al Nahda	STUDIOS Avg. Yearly RentChange from Q2 2019 19,000 -9.5%	1 BED APTS Avg. Yearly RentChange from Q2 2019 26,000 -7.1%	2 BED APTS Avg. Yearly RentChange from Q2 2019 35,000 0.0%
Al Qasimia	STUDIOS Avg. Yearly RentChange from Q2 2019 18,000 0.0%	1 BED APTS Avg. Yearly RentChange from Q2 2019 22,000 -8.3%	2 BED APTS Avg. Yearly RentChange from Q2 2019 27,000 -3.6%
Muwaileh	STUDIOS Avg. Yearly RentChange from Q2 2019 14,000 0.0%	1 BED APTS Avg. Yearly RentChange from Q2 2019 24,000 -4.0%	2 BED APTS Avg. Yearly RentChange from Q2 2019 35,000 0.0%
Al Khan	STUDIOS Avg. Yearly RentChange from Q2 2019 20,000  N/A	1 BED APTS Avg. Yearly RentChange from Q2 2019 26,000 8.3%	2 BED APTS Avg. Yearly RentChange from Q2 2019 34,500 7.8%
Muwailih Commercial	STUDIOS Avg. Yearly RentChange from Q2 2019 14,000 0.0%	1 BED APTS Avg. Yearly RentChange from Q2 2019 24,000 0.0%	2 BED APTS Avg. Yearly RentChange from Q2 2019 33,006 0.0%
Abu Shagara	STUDIOS Avg. Yearly RentChange from Q2 2019 16,000 3.2%	1 BED APTS Avg. Yearly RentChange from Q2 2019 24,000  N/A	2 BED APTS Avg. Yearly RentChange from Q2 2019 30,000 0.0%
Bu Tina	STUDIOS Avg. Yearly RentChange from Q2 2019 14,000 7.7%	1 BED APTS Avg. Yearly RentChange from Q2 2019 20,000 0.0%	2 BED APTS Avg. Yearly RentChange from Q2 2019 25,000 0.0%
Al Mamzar	STUDIOS Avg. Yearly RentChange from Q2 2019 20,988  N/A	1 BED APTS Avg. Yearly RentChange from Q2 2019 37,000  N/A	2 BED APTS Avg. Yearly RentChange from Q2 2019 46,000  N/A
Subscribe to Subscribe Not available due to low/no historical inventory or influx of off-plan properties

Tenants looking at apartments for rent in Sharjah, also appear to favour the waterfront community of Al Majaz. Rents in Al Majaz remain unchanged for the most part, with the exception of studios which saw an upswing of 5.9%. The average rents for studios in Al Majaz went up from AED 17k in Q2 of 2019 to AED 18k now. The property prices in Sharjah for 1 and 2-bedroom rental flats in Al Majaz average at AED 28k and AED 37k respectively.

Al Taawun is the next most sought after area with flats for rent in Sharjah where average prices are seeing a slight uptick. Price for 1-bedroom flats went up by 4.0% from AED 25k previously to AED 26k in Q3 of 2019. As for the 2-beds, the rents for these units went up by 2.8% from AED 36k to AED 37k. Only rents for studios in Al Taawun remain unchanged at AED 19.9k. Being a family-friendly area close to Dubai, properties in Al Taawun are always in demand, which creates good conditions for landlords negotiating with tenants.

The Al Nahda neighbourhood, which had consistently taken the lead due to its affordable property prices in Sharjah, now ranks in the third spot in terms of popularity for apartment rentals. The studios for rent in Al Nahda have seen the most significant decrease, dropping by 9.5% from AED 21k to AED 19k in Q3 2019. Meanwhile, prices to rent 1-beds in Al Nahda also dipped by 7.1% from AED 28k to AED 26k, while 2-bedroom flats remain unchanged at AED 35k.

Other popular neighbourhoods to rent flats in Sharjah include Al Qasimia, Muwaileh, Al Khan, Muwailih Commercial, Abu Shagara, Bu Tina and Al Mamzar. Amongst these areas, Al Khan, Bu Tina and Al Mamzar are seeing an upswing in prices between 7-9% indicating a healthy atmosphere for investors looking at buy-to-let apartments in Sharjah.

TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

HOSHI IS THE MOST POPULAR COMMUNITY FOR BUYING VILLAS IN SHARJAH  FOR Q3 2019

In Q3 2019, real estate trends show that areas that are close the Dubai are favoured by investors and potential homeowners. Hoshi is the first choice for investors keen to buy a villa in Sharjah. According to Bayut’s latest listings, the real estate prices in Sharjah for buying a house in Hoshi starts from AED 1.85M.

Al Rahmaniya which is a quaint neighbourhood situated on the Ajman-Sharjah border is the second location that investors are showing interest towards when it comes to buying houses in Sharjah. As per the current listings on Bayut, potential homeowners and investors can expect to pay a starting price of AED 2.2M for the villas in Al Rahmaniya.

The areas of Al Gharayen and Al Suyoh ranked third and fourth respectively on the list of top 10 areas to buy houses in Sharjah. Both these villa communities in Sharjah are also located right next to the Dubai – Sharjah bored offering easy access to both emirates. The Sharqan community which is known for its contemporary villas and waterfront views ranked fifth on the list. As per the latest listings on Bayut, the real estate prices in Sharjah for the houses for sale in Sharqan start at AED 1.5M.

Other popular areas to buy villas in Sharjah in Q3 2019 include Al Azra, Al Noaf, Barashi, Al Goaz, Al Sabkha

HOSHI AND BARASHI HAVE THE BEST AVERAGE ROI FOR VILLAS IN SHARJAH

Those looking to invest in villas in Sharjah with a high rental yield should consider Hoshi and Barashi, which offers an average ROI of 6.8% and 6.4% respectively. This can change depending on the type of property. Other areas with a high average rental yield in Sharjah include Al Azra and Al Gharayen offer a good ROI at the 5% mark

AL AZRA TAKES THE LEAD AS THE MOST POPULAR PLACE TO RENT HOUSES IN SHARJAH FOR Q3 2019

When it comes to renting villas in Sharjah, the Al Azra area takes the crown with the most interest from potential tenants. Tenants can find a variety of luxurious residential units with modern amenities with rents starting as low as AED 32k for a 3-bedroom villa in Al Azra.

The second most sought-after neighbourhood amongst renters is Al Ghafia, which is located close to the Ajman-Sharjah border. Tenants looking for a new home will find that property prices in Sharjah to rent villas in Al Ghafia start from as low as AED 48k, according to the current listings on Bayut.

Taking the third and fourth spot for villa rentals in Sharjah is Sharqan and Al Sabkha, respectively. These two communities are located just 10 minutes away from each other and are surrounded by plenty of amenities. In the fifth spot, we have Barashi, which is known for being home to the new villas in Sharjah that boast the latest fixtures and fittings.

Other areas in the Sharjah property market that are attracting tenants looking at villas include Al Jazzat, Al Qadisiya, Al Mansoura, Al Ghubaiba and Al Mirgab.

OFF-PLAN PROJECTS IN SHARJAH

When it comes to off-plan investments in Sharjah, apartments seem to be a hit with potential homeowners and investors. In the third quarter of 2019 Aljada is the popular development for off-plan apartments in Sharjah. Within Aljada, the flats for sale in Areej Apartments has garnered the most interest from investors and home buyers.

Other popular off-plan developments in Sharjah for apartments include the Nasma Residence in Al Tai, Blue Bay Walk in Sharjah Waterfront City and  Maryam Island in the Al Khan district.

Those looking to buy off-plan villas in Sharjah should consider the Al Suyoh 7 community and Al Zahia complex in Muwaileh. Both of these suburbs offer a family-oriented atmosphere with educational facilities in close proximity.

That concludes this real estate market analysis of property prices in Sharjah for Q3 2019. Subscribe to MyBayut to get the latest updates on the Ajman Q3 2019 market analysis.

For those who would like to keep up-to-date about the property prices in the other emirates, check out the Bayut’s Q3 2019 Dubai Market Report and Q3 report for Abu Dhabi, on the Market Trends section on the blog.

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.