Sharjah End of Year Market Report 2019: Affordable prices create the perfect conditions for buyers and tenants

After analysing the reports for the Dubai and Abu Dhabi property market, it is now time to see how the Sharjah real estate market fared in 2019. For this year-end 2019 Sharjah real estate market report, we have compared the property prices in Sharjah from 2018 with property prices in 2019.

Consistent with the overall price trends observed in the other emirates, property prices in Sharjah decreased in areas like Al Majaz, Al Khan, Al Taawun and Al Nahda for both rent and sales. Even with the dip in prices, however, the average rental yields are healthy, going up to an average ROI of close to 7.2%. This has led to the creation of an ideal environment for home buyers and investors to purchase property in the Sharjah real estate market.

This fact is further validated by The Sharjah Real Estate Registration Department (SRERD) report that shows a 13.4% increase in Sharjah real estate transactions in 2019 in comparison to 2018. There were 61,357 real estate transactions recorded in Sharjah valued at AED 24.2 billion, a 7.3% increase in comparison to the 2018 transactions’ value. Most of these transactions were concentrated in the Muwailih Commercial, Hoshi, Al Nahda and Al Khan areas.

Let’s look at the trends for property prices in Sharjah in 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

Al Majaz is the most popular area among investors for buying apartments in Sharjah. The price per square foot in the area was AED 381 in 2019 making it an affordable option for those looking to invest in waterfront locations. This well-developed neighbourhood is one of the most highly sought-after areas in Sharjah offering recreation, convenience and amenities that support a modern lifestyle. Those interested in purchasing properties in this area should note that the area caters primarily to local and GCC investors.

The cost of studios for sale in Al Majaz went from AED 258k in 2018 to AED 230k in 2019. For the same time period, 1-bed apartments for sale went from AED 490k to AED 345k, while the price for 2-bed units decreased from AED 735k to AED 480k.

The second most popular area for buying apartments in Sharjah is Al Khan. The price per sq.ft. for Al Khan apartments on sale saw an 11.9% decline, as it dropped from AED 488 to AED 430. This could be attributed to the fact that some apartments in Maryam Island, Al Khan’s popular off-plan project, were completed and handed over, enhancing the portfolio of properties available on the market for buyers. The most prominent impact can be seen in the price of 2-bed apartments for sale in Al Khan, which dropped from AED 742k to AED 730k. The prices for studios increased, averaging at AED 357k, while 1-bed flats for sale are priced at AED 480k, on average.

Apart from the top two locations, the affordable neighbourhood of Al Nahda Sharjah and the bustling Al Taawun district have also appealed to investor interest with competitive prices in terms of flats for sale in Sharjah.

While most top areas to buy apartments in Sharjah displayed consistency with the overall price trends in Sharjah, Muwaileh was the only exception. The price per sq.ft. for apartments in Muwaileh increased by 6.7% to AED 975. There are several factors that contribute to this increase in price, but the most significant cause is the influx of new projects and developments and handover of off-plan properties which have now been completed. In addition to this, Muweileh enjoys a well-connected location with little traffic congestion, which makes it appealing for potential homeowners.

Considering the property prices in Sharjah for selling apartments, one can see the simple forces of demand and supply influencing market conditions. The fact that Sharjah’s real estate market is burgeoning with off-plan properties has increased the supply of apartments for sale and those looking to invest in property now have greater choice. With demand, more or less the same, the prices have been pushed down to make investment properties more affordable.

ABU SHAGARA OFFERS THE BEST AVERAGE ROI IN SHARJAH FOR APARTMENTS

Abu Shagara has the highest ROI for apartments for sale in Sharjah. Offering an average return of 9% on investment, Abu Shagara is great for investors in search of acquiring healthy real estate assets with good potential for rental yields. Another impressive area to buy apartments in Sharjah is Corniche Buhaira with its average ROI of 8.4%. According to the property price trends in Sharjah, other popular areas that offer healthy average rental returns of more than 7% include Al Taawun and Al Majaz. 

AL MAJAZ SHARJAH IS THE FIRST CHOICE FOR RENTING APARTMENTS IN SHARJAH

PROPERTY PRICES IN SHARJAH TO RENT FLATS IN THE TOP 10 AREAS

Sharjah has always been a preferred market for tenants. Property prices in Sharjah for rental apartments saw an overall decline in the year 2019. The decreasing rents only make the rental flats in Sharjah more affordable for those looking to settle in the emirate. Potential tenants should note that prices have become more affordable for apartments in Al Taawun and Al Khan, where prices dropped between the range of 17.8% and 20%.

In line with the trends seen for apartments sales Al Majaz also witnessed a decline in rentals. Prices changed from AED 20k in 2018 to AED 17.9k for studios in 2019, while 1-bed units decreased from AED 31k to AED 25k and 2-bed apartments went from AED 38k to AED 33k. This could be attributed to the fact that tenants have a greater inventory of newer properties to choose from, in areas such as Muwaileh and Al Khan, which has diversified the market further. 

Al Taawun ranks second on the list of popular areas for apartment rentals in Sharjah. Studios for rent in Al Taawun went from AED 21k in 2018 to AED 17k in 2019. Prices for 1-bedroom flats for rent in Al Taawun changed by 18.8% from AED 32k in 2018 to AED 26k in 2019. The rents for 2-BHK flats in Al Taawun witnessed a 17.8% decrease AED 45k to AED 37k.

Al Nahda Sharjah, popular for being the most affordable residential area in the emirate, became even more competitive throughout the course of 2019. Rental prices for studios, 1-bed and 2-bed apartments went from AED 25k, AED 31k, AED 40k in 2018 to AED 20k, AED 28k and AED 35k respectively in 2019.  

Other popular areas to rent flats in Sharjah consist of Muwaileh, Al Qasimia, Al Khan, Muwailih Commercial, Abu Shagara, Al Mamzar and Bu Tina. Property prices in Sharjah for renting flats in these areas also saw a decrease ranging from 5.1% to 20%. Tenants should note that most of these are for larger units, so it might be a good time to upgrade to a bigger property. 

This overall fall in rental prices is a direct result of the greater availability of choice for the buyers. With more and more off-plan apartments in Sharjah being completed, there is a genuine transference of tenants from existing properties to newer ones. This has also led apartment owners to opt for competitive pricing strategies to make their properties more affordable and accessible to the tenants.

MOST POPULAR AREAS TO BUY AND RENT VILLAS IN SHARJAH

TOP AREAS FOR BUYING AND RENTING VILLAS IN SHARJAH

Property prices in Sharjah for villas also saw a decline on average. For the year 2019, Hoshi remained the most sought-after area for investors interested in villas for sale in Sharjah. This well-appointed villa community sits on the Dubai – Sharjah border, ideal for those who want to live in Sharjah and work in Dubai. Hoshi offers lavish villas that range from 3 to 6-bed units. Villas for sale in Hoshi have a starting price of AED 1.8M.

Ranking second and third in popularity are the Al Rahmaniya and Sharjah Garden City villa communities in Sharjah. Al Rahmaniya is a vibrant suburban district located in proximity to attractions like the Sharjah Equestrian and Racing Club and the Sharjah National Park. This rapidly growing residential locale offers family-friendly living and amenities. Sharjah Garden City, on the other hand, offers quick access to Dubai alongside modern conveniences and lifestyle. Investors can buy villas in Sharjah Garden City for as low as 999k.

Other villa communities that have made an impact on this the 2019 Sharjah market report for villas include Al Azra, Sharqan, Al Gharayen, Al Noaf, Al Suyoh, Al Barashi, and Al Goaz.

Enjoying the fourth spot on the list of top areas for villa sales in Sharjah, Al Azra emerged as the top choice for rental villas in Sharjah. The area is popular among families for its quality lifestyle amenities, abundance of schools and affordable rents. The lowest rent for villas in Al Azra is AED 32k.

The Sharqan area ranks second for rental villas in Sharjah. The community has schools, banks and other amenities located in its proximity. Rental property prices in Sharjah for villas in Sharqan range between AED 45k and 130k. Al Ghafia is the third most popular area among tenants in search of villas in Sharjah, the rentals here start from AED 45k.

Other sought-after locations for renting homes in Sharjah are Al Jazzat, Al Barashi, Al Sabkha, Al Qadisiya, Sharqan, Al Ramla, Al Mirgab and Al Fayha.

BARASHI AND AL NOAF HAVE THE BEST AVERAGE ROI FOR VILLAS IN SHARJAH 

Those who wish to invest in villas in Sharjah that offer a high rental yield should consider Barashi and Al Noaf. Both of these areas offer the highest average ROI of 7.4% in Sharjah. The average returns, however, may fluctuate depending on the type of property one invests in. Other areas with a high rental yield in Sharjah include Hoshi and Al Gharayen with average ROIs of 6.6% and 6.1% respectively. 

TOP OFF-PLAN PROJECTS IN SHARJAH REAL ESTATE

MOST POPULAR OFF-PLAN PROJECTS IN SHARJAH

There has been an increasing demand for off-plan properties in Sharjah, as people’s preferences make a paradigm shift towards newer properties. The overall off-plan market in Sharjah has picked up the pace with new developers entering the market bringing an array of projects to the UAE’s cultural capital. In the longer run, the off-plan market has been a key factor behind the overall property prices in Sharjah becoming more affordable. The most popular off-plan development in Sharjah for 2019 was Aljada. 

Located near Sharjah Airport International Free (SAIF) Zone and University City, Aljada offers both off-plan apartments and villas for sale in Sharjah. The variety of projects it offers makes it one of the top areas for foreigners to invest in Sharjah. Areej Apartments, East Village and MISK apartments remained the most sought-after Aljada projects in 2019.  

Also making waves in the Sharjah off-plan market are the Al Zahia and Al Mamsha developments in the Muwaileh area. Al Zahia offers a choice of apartments, townhouses and villas for sale in Sharjah. On the other hand, apartments in Al Mamsha come in studio, 1-, 2-, and 3-bed configurations, with a starting price of AED 335k.  

Other popular off-plan projects in Sharjah include the Blue Bay Walk in Sharjah Waterfront City, Maryam Island in the Al Khan area and Tilal City C in the Tilal City masterplan. 

Haider Ali Khan, CEO of Bayut, also commented on the Sharjah real estate market’s performance throughout 2019: 

“Sharjah and Ajman closely follow trends in Dubai and Abu Dhabi. Similar results were observed throughout 2019 with prices declining in Sharjah and Ajman, however growth in terms of inventory and supply was also seen in these markets. This year, there have been several handovers in both cities, including reputed projects such as Al Zahia and Nasma Residences in Sharjah, and the Ajman Corniche Residence in the UAE’s smallest emirate.

The growth in Sharjah’s off-plan segment has enabled agencies and developers to capitalise on a wider profile of investors. Projects like Aljada and Sharjah Waterfront City have gained a lot of popularity with both local and expat communities. As these projects mature and attract more investors, the real estate market in Sharjah is expected to grow further in the coming months. The Sharjah government announcing their highest annual budget so far, is a pretty promising sign, clearly showing that there is a consistent effort towards bringing in more development to the emirate.

Ajman’s strategic move to open up the freehold market earlier on, has certainly proved beneficial. The expat-friendly freehold communities have continued to remain popular with residents, and newer developments such as Ajman Uptown are also capitalising on this trend by offering properties that are integrated with comparable facilities. These new projects also offer the added security of living in a gated community, a big factor that contributes to the decision making of a lot of homebuyers from different nationalities, thus fulfilling the needs of a more global audience.”

That’s all there is to the real estate market analysis of property prices in Sharjah for 2019. Subscribe to MyBayut. Also take a look at the year-end market report for Dubai and how 2019 fared for the property market in Abu Dhabi. 

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