Sharjah Market Report for H1 2020: Ideal market conditions for tenants and investors

• APARTMENT SALES
• APARTMENT RENTALS
• VILLAS IN SHARJAH
• OFF-PLAN PROPERTIES

As we enter into the second half of 2020, it’s time to revisit consumer interest in the cultural capital over the past six months to bring you a comprehensive analysis of property price trends in Sharjah. For this H1 2020 real estate market report on Sharjah, we have compared the property prices in Sharjah for the first six months of 2020 with those in the last six months of 2019.

With the COVID-19 situation largely under control and life in the UAE returning back to normal gradually, the real estate market in Sharjah has managed to bounce back without too many fluctuations in property prices. Property prices trends in Sharjah have generally become more favourable for potential homebuyers and tenants with the market softening overall.

Sharjah’s real estate trends for rental properties show a greater demand for affordable residences in well-established areas located near Dubai, while homebuyers appear to be keen on bigger housing units that offer an upscale, family-friendly lifestyle. Most key neighbourhoods have also continued to maintain a healthy ROI averaging at over 6%.

Here’s a detailed analysis of Sharjah real estate trends for H1 2020.

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

PROPERTY PRICES IN SHARJAH FOR BUYING APARTMENTS IN H1 2020

Al Majaz has held on to its popularity among potential investors and homeowners looking to buy apartments in Sharjah. Even though the average price per sq.ft. for apartments in Al Majaz increased by 3.1% from AED 373 in H2 2019 to AED 385 H1 2020, the area is still preferred by GCC and local investors for its affordable waterfront residences, excellent connectivity and recreational facilities.

Based on the analysis of property prices in Sharjah, the asking price for a 2-bed apartment in Al Majaz has increased in H1 2020, going up to AED 597k from AED 506k in H2 2019. Studio flats and 1-bed apartments in Al Majaz are also highly sought-after by investors who want to add lucrative buy-to-let apartments to their investment portfolio. Therefore, once listed these properties have a quick turnaround time leaving their inventory predictably low.

Home-seekers and investors who want to buy apartments in Sharjah have also shown interest in the properties available in Al Khan. In the first half of 2020, there has been a decrease of 3.3% in the price per sq.ft. for Al Khan apartments on sale from AED 440 to AED 425. There has also been an increase in the average sales price of 2-bed apartments in Al Khan from AED 727k to AED 768k, which could be attributed to increased interest for bigger units with more personal space.

The neighbourhood of Al Nahda Sharjah, with its greater affordability and proximity to Dubai, the lively neighbourhood of Al Taawun and the school district of Muweileh have also attracted prospective buyers in Sharjah.

Overall the property prices in Sharjah for apartments on sale have experienced marginal declines, making the market increasingly competitive, but at the same time buyer-friendly.

It is no surprise that most buyers looking at flats for sale in Sharjah have been heavily inclined towards family-friendly areas that are well-connected with the rest of the city and easily accessible from Dubai.

AL TAAWUN OFFERS GOOD ROI FOR APARTMENTS IN SHARJAH

According to Bayut’s analysis of property prices in Sharjah for H1 2020, apartments in Al Taawun have a healthy ROI of 6.9%. Besides Al Taawun, the Al Majaz and Al Khan areas also have impressive average rental yields of 6.6% each.

While the ROI figures reflect the average returns on apartments in the area, the specific rental yields may substantially vary based on the property you buy and the building it’s located in.

AL MAJAZ IS THE TOP AREA TO RENT APARTMENTS IN SHARJAH

PROPERTY PRICES IN SHARJAH TO RENT FLATS IN H1 2020

The average property prices in Sharjah for rental apartments have also become more competitive as per Bayut’s H1 2020 Market Report.

Al Majaz has continued to be the top choice for tenants in search of rental apartments in Sharjah, with most renters looking at the well-appointed buildings in Al Majaz 2 and Al Majaz 3. The average rent for studio flats in Al Majaz has averaged at a competitive AED 18k, while rents for 1 and 2-bed flats in Al Majaz, have decreased slightly and now average at AED 26k and AED 35k respectively.

Al Nahda has also remained a popular choice among tenants. Many potential renters have shown interest for the rental flats in Sahara Towers and Al Nahda Complex Towers, in particular. Property prices in Al Nahda Sharjah have remained largely stable with the only decrease recorded for studios where prices went from AED 19k in H2 2019 to AED 18k in H1 2020. The average rent for 1-bed apartments in Al Nahda has remained stable at AED 27k while the price for 2-bed flats for rent in Al Nahda have also remained steady at AED 34k.

Tenants interested in apartments for rent in Sharjah have also shown considerable interest in the Muwaileh area. Rents for studios in Muwaileh have decreased from AED 14k in H2 2019 to AED 12.5k in H1 2020. The rents for 1-bed apartments in Muwaileh have also seen a dip of 8.3% and now average at AED 22k. The average rent for 2-bed apartments in Muwaileh has remained unchanged at AED 35k.

Based on the analysis of trends in the Sharjah real estate market, tenants have also searched for flats in areas like Al Taawun, Al Qasimia, Al Khan, Muwailih Commercial, Al Nabba, Abu Shagara and Bu Tina. Property prices in most of these areas in Sharjah have either remained stable or witnessed a decline between 3% and 10% hinting at a largely tenant-friendly market.

It is important to point out here that unlike Dubai and Abu Dhabi the average rent for individual apartments in Sharjah may greatly vary from the overall average of the area. It is not unusual for two different buildings in the same area to have a substantial disparity in the rents based on factors like amenities, parking spaces, access to healthcare facilities and more.

TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

AL RAHMANIYA IS THE MOST POPULAR COMMUNITY FOR BUYING VILLAS IN SHARJAH FOR H1 2020

Consumer interest in the Sharjah real estate market shows a greater inclination towards suburban homes on the buyers’ end. The quaint and family-friendly community of Al Rahmaniya has been the most popular choice among buyers and investors interested in purchasing villas in Sharjah. When it comes to the cost of homes for sale in Al Rahmaniya, the asking prices generally tend to be over AED 1.3M on average.

The Hoshi area, with its proximity to the Dubai-Sharjah border, has been another popular choice with buyers looking at villas for sale in Sharjah. The asking prices for a home here ranges between AED 1.8M and AED 4.7M.

The swanky Al Azra district, the Al Noaf community located close to Dubai and Sharqan with its modern waterfront villas have been the other popular areas with buyers looking for houses in Sharjah.

Our analysis of the Sharjah real estate trends reveals that potential homeowners and investors who wanted to buy villas in the emirate during H1 2020 were also interested in areas like Al Qadisiya, Al Gharayen, Al Sabkha, Al Ghafia and Barashi.  

BARASHI HAS THE BEST AVERAGE ROI FOR VILLAS IN SHARJAH

According to the Sharjah real estate trends observed at Bayut, Barashi has been offering a healthy return on investment (ROI) for investors keen on buying villas. This particular villa community in Sharjah has an average ROI of 7.3% for H1 2020 – higher than any other similar neighbourhood in the emirate. However, investors must keep in mind that these returns tend to vary depending on property type and the amenities available.

Other communities such as Al Ghafia and Al Noaf also offer good rental yields of up to 6.5% and 5.7% respectively.

SHARQAN IS THE MOST POPULAR PLACE TO RENT HOUSES IN SHARJAH FOR H1 2020

The luxurious Sharqan community has been a firm favourite with tenants looking for rental houses in Sharjah. The area’s nearness to clinics, schools, restaurants and beaches clearly adds to its popularity. According to the listings on Bayut, the starting annual rent for villas in Sharqan is AED 65k.

Tenants have also shown an inclination towards villas in Al Jazzat, where they can expect to pay annual rents starting from AED 25k. The well-connected Al Jazzat community is located near Ajman and has unhindered access to all the essential amenities needed for a peaceful suburban life.

Barashi and Al Sabkha have emerged as the third and fourth most popular neighbourhoods in H1 2020 among prospective tenants in search of villas for rent in Sharjah. Both these residential areas are known for their well-connected, upscale living. Al Ghafia, which sits on the Sharjah-Ajman border, is another popular option that is ideal for tenants who frequently commute between the emirates.

Tenants looking for rental villas in Sharjah have also shown interest in the Al Rifah, Al Azra, Hoshi, Al Qadisiya and Al Falaj communities.

OFF-PLAN PROJECTS IN SHARJAH

The off-plan property market in Sharjah is burgeoning with new developments that bring a variety of options for investors. One of the most prominent off-plan projects in Sharjah over the past six months has been Al Zahia in Muwaileh. Thanks to the well-planned infrastructure of the centrally-located Muwaileh district and the array of property options it offers, Al Zahia has gained immense popularity among investors.

Potential investors in search of off-plan apartments in Sharjah can also consider East Village Development in Aljada and the apartments in Maryam Island, Al Khan.  

Buyers more inclined towards off-plan homes in Sharjah can also explore the villas in Al Suyoh 7. This well-connected suburb is a family-friendly neighbourhood which benefits from the availability of some excellent educational institutions nearby.

Another great off-plan investment option could be the Nasma Residences in Al Tai that offers investors a variety of off-plan villas and townhouses in Sharjah.

That brings us to the end of this real estate market analysis of property prices in Sharjah for H1 2020.

Just like property prices in Sharjah, if you’d like to keep up-to-date with the real estate trends in other emirates, Bayut’s H1 2020 Dubai Market Report and the H1 report for Abu Dhabi is already up and live in the Market Trends section of the blog.

Also, do subscribe to MyBayut so that you don’t miss out Bayut’s Ajman H1 2020 market analysis.

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.