Sharjah Market Report H1 2021: Affordable prices and family-friendly amenities continue to draw tenants and investors

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

As the first half of 2021 draws to a close, it’s time to reflect on how the Sharjah property market has performed during the last six months. To give you an in-depth insight into the emirate’s real estate market trends, we have compared property prices on Bayut and dubizzle (excluding room share) from the first six months of 2021 to the last six months of 2020.

• In H1 2021, Sharjah’s real estate sector has displayed significant stability, recording minor fluctuations mainly under 10% in both sales and rental prices. The emirate’s growing off-plan sector and healthy rental yields of up to 6% have also been instrumental in attracting real estate investors.

• According to Sharjah’s Real Estate Registration Department, the emirate has recorded real estate transactions worth AED 6.7B in the first quarter of 2021 alone, an increase of 84.9% when compared to the same period in 2020.

Keep reading for a comprehensive analysis of the property prices in Sharjah, as well as popular areas in the emirate to buy and rent properties.

For an accurate representation of properties for sale, our H1 2021 market report compares the average sales price per square foot for an area. Please note that these prices are subject to change based on multiple factors including amenities available, the developer involved in the project, location, and other key details.

Our report also compares the asking rents from H1 2021 to H2 2020, to provide the average rental prices in Sharjah for apartments and villas. 

PROPERTY PRICES IN SHARJAH FOR BUYING APARTMENTS IN H1 2021

AL KHAN IS THE MOST-SEARCHED AREA FOR BUYING APARTMENTS

As per consumer trends observed on Bayut & dubizzle, Al Khan has continued to be the top choice for investors in H1 2021. The area’s continued appeal can be attributed to its prime location and growing portfolio of waterfront residences.

The property prices in Sharjah for the first six months of 2021 have seen the average price per square foot for sale apartments in Al Khan increase by nearly 15%, rising from AED 714 to AED 820. This could be attributed to recent handovers in the luxury waterfront development – Maryam Island. The prices of 1-bed apartments for sale in Al Khan have averaged at AED 539k, while the cost of 2 and 3-bed Al Khan flats have experienced slight increases in H1 2021, averaging at AED 804k and AED 1.24M respectively.

Al Majaz has been the second-most popular area for buyers in the cultural capital of the UAE. Al Majaz offers family-friendly amenities and a waterfront lifestyle at competitive prices, which has resulted in sustained interest for flats in the area.

Asking prices of 1-bed apartments for sale in Al Majaz have averaged at AED 317k. When it comes to larger units, the average prices of 2-bedroom apartments in Al Majaz have stood at AED 560k. However, investors looking to buy 3-bed Al Majaz flats have paid an average of AED 796k in H1 2021.

Another area that has remained a firm favourite among buyers has been Al Nahda. The sales price per square foot for apartments in Al Nahda has seen an uptick of 2.7%, pointing to healthy demand for units in the area.

Akin to a number of other significant property prices in Sharjah, sales prices for apartments in Al Nahda have seen slight increases in H1 2021. The average cost of 1-bedroom apartments for sale in Al Nahda has risen from AED 367k to AED 385k, while 2-bed sale flats in Al Nahda have increased from AED 540k to AED 588k. The 3-bed apartments for sale in Al Nahda have also seen prices increase from AED 997k in H2 2020 to AED 1.03M in H1 2021.

Muwaileh has been another investor-friendly area in H1 2021, which is reflected in its rising prices. Apartments in Muwaileh have seen an increase of 8.02% in sales price-per-square-foot, averaging at AED 909 in H1 2021.

MARYAM ISLAND IS THE MOST POPULAR FOR APARTMENTS FOR SALE IN SHARJAH

In H1 2021, Maryam Island has drawn the most attention from buyers and investors looking for apartments in Al Khan. The up-and-coming waterfront development promises brand-new residences, community amenities and attractions. As per current listings on Bayut, the asking prices for apartments on Maryam Island start at AED 337k.

Other popular areas to buy apartments in Al Khan include Palm Tower 1, Danat Al Khan Tower, Riviera Tower and Asas Tower.

AL MAJAZ OFFERS THE BEST ROI FOR APARTMENTS IN SHARJAH

Buyers looking to benefit from strong rental returns should consider the apartments in Al Majaz, which have offered an average ROI of 6.6%. Other areas that generate healthy rental yields include Al Nahda and Al Khan, where investors can earn 5.1% and 3.3% ROI on average.

RENTAL PRICES IN SHARJAH FOR APARTMENTS IN H1 2021

AL NAHDA HAS REMAINED THE MOST POPULAR AREA TO RENT APARTMENTS

In H1 2021, Al Nahda has once again proven to be the top choice for tenants for renting apartments in Sharjah. Al Nahda’s strategic location and competitive rents are the two key factors that have given the neighbourhood an edge over others.

When compared to H2 2020, the rental costs in Al Nahda have remained largely stable in the first half of 2021. The average yearly rent of studios in Al Nahda has remained steady at AED 16k, while the average rent of 1-bed apartments in Al Nahda has dipped by 7.9% to AED 21k per annum. Similarly, 2-bedroom apartments in Al Nahda have seen rental costs remain competitive, decreasing by 8.15% to average at AED 28k.

Other areas that have continued to be firm favourites with tenants are Al Majaz and Al Taawun. While Al Majaz has seen rental costs remain steady across the board in H1 2021, Al Taawun has seen decreases between 4% to 7% in asking rents for 1 and 2-bed flats.

The average rents of studios in Al Majaz have remained steady at AED 16k, while 1 and 2- bedroom rental apartments in Al Majaz have averaged at AED 24k and AED 34k respectively. Al Taawun has also offered attractive rental rates, with 1-bedroom apartments for rent averaging at AED 23k and 2-bed flats at AED 33k.

While asking rents in most popular areas have either remained steady or experienced minor decreases, Al Khan has seen rental costs increase between 5% to 10% across the board. This could be the result of newer and more luxurious units on Al Maryam Island, such as Maryam Beach Residence, entering the rental market.

Apart from these areas, tenants have also shown a preference for historically popular communities such as Al Qasimia, Abu Shagara, Al Mahatah, and Bu Tina for renting apartments in Sharjah.

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

Tenants searching for apartments in Al Nahda have shown a clear inclination towards Sahara Towers. Spread across six buildings, this high-rise residential complex offers comfortable flats, an active lifestyle, and luxurious amenities. From landscaped gardens to a swimming pool, the complex is equipped with a range of facilities. The asking rents of apartments in Sahara Towers start at AED 30k per annum.

Apart from Sahara Towers, Al Yarmook, Al Rayyan Complex, Al Nahda Complex Towers and Al Nahda Towers are popular buildings in Al Nahda among potential tenants.

PROPERTY PRICES IN SHARJAH FOR VILLAS: TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

AL TAI IS THE MOST POPULAR AREA FOR SALE VILLAS IN SHARJAH FOR H1 2021

In H1 2021, Al Tai has been the most in-demand area to buy villas in Sharjah. The abundance of family villas and local amenities has helped to enhance the area’s popularity among potential investors. A microcosm of the holistically competitive property prices in Sharjah, the average price of 3-bedroom houses for sale in Al Tai at AED 1.4M while one can buy 4-bedroom Al Tai houses at AED 2M. The 5-bedroom houses for sale in Al Tai are ideal for bigger families, with the average price going up to AED 3.1M.

Hoshi has emerged as the second-most popular area for villa sales in Sharjah. Located close to the Sharjah-Dubai border, the area is most desired by those who live in Sharjah and work in Dubai. The average cost of 4-bed villas in Hoshi stands at AED 2.6M while investors can find spacious 5-bedroom houses for sale in Hoshi at AED 3.3M.

Another area that has been drawing attention from investors is Al Rahmaniya. Buyers can purchase 3-bedroom houses in Al Rahmaniya for an average of AED 1.3M while 4 and 5-bedroom sale villas in Al Rahmaniya cost an average of AED 1.8M and 3.8M respectively.

Those looking to benefit from the attractive property prices in Sharjah and to utilise the solid investment opportunities in the emirate’s burgeoning villa property market can also consider Muwaileh, Al Noaf, and Sharqan.

AL GHARAYEN HAS THE HIGHEST ROI FOR VILLAS IN SHARJAH

As per our half-yearly data, Al Gharayen has been offering the highest ROI in H1 2021, boasting average rental yields of 6.18%. Following close behind are Muwaileh and Hoshi, boasting an average ROI of 5.7% and 5.6% respectively. Investors looking for more options can also consider Al Qadisiya, which offers average investment returns of 4.3%.

AL TAI IS THE MOST POPULAR AREA TO RENT HOUSES IN SHARJAH FOR H1 2021

As per the combined data released by Bayut & dubizzle, Al Tai is the most popular area for renting villas in Sharjah. The average rent of 3-bed villas in Al Tai is AED 75k, while the rents of 4-bed Al Tai houses average at AED 108k. For those searching for bigger units, 5-bedroom rental villas in Al Tai are available for an average of AED 130k per annum.

Al Jazzat is the second-most sought-after area for rental villas in Sharjah. With easy access to key attractions and the Sharjah International Airport, the area has been steadily gaining traction in the emirate. Potential tenants can expect to shell out around AED 61k to rent 3-bed villas in Al Jazzat. Other spacious accommodations, such as 4 and 5-bed villas in Al Jazzat are available for average rents of AED 89k and AED 100k respectively.

Other popular communities for rental villas in Sharjah include Al Sabkha, Al Hazannah, Al Yash and Barashi.

As you can see, Al Tai is the most popular area for buying or renting villas in Sharjah. Both tenants and buyers have shown the most interest in Nasma Residence in Al Tai.

TOP OFF-PLAN PROJECTS IN SHARJAH

Sharjah has a growing off-plan market, which has been continuously evolving to adapt to the needs of investors. Launched in January 2021, Masaar in Al Tai has emerged as the most popular off-plan project in the emirate in H1 2021. Located in Al Tai, Masaar offers apartments, villas, and townhouses to investors. The prices of off-plan villas in Masaar start at AED 1.1M.

Arada’s Naseej District is the second-most popular off-plan project in Sharjah with prospective buyers and investors. This upcoming, upscale neighbourhood in Aljada will celebrate art and culture, featuring 16 contemporary apartment buildings and other anchor cultural spots. The project will be delivered by the first quarter of 2023. The starting cost of the off-plan apartments in Naseej District is AED 311k, continuing the prevalent theme of affordable property prices in Sharjah.

Another upcoming development that has been a firm favourite with investors is Al Zahia in Muwaileh. Offering an integrated, family-friendly lifestyle, this master-planned community comprises apartments, villas and townhouses. Please note that while certain phases of Al Zahia have been handed over, others are still under development.

Other highly-anticipated off-plan projects in Sharjah include the iconic waterfront development Maryam Island in Al Khan and Ajmal Makan in Sharjah Waterfront City.

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

“The growing positive sentiment in Dubai and Abu Dhabi can also be seen in the Sharjah and Ajman property markets in the first half of 2021. Real estate transactions in both emirates have been on the rise, and certain neighbourhoods have even seen an uptick in sales prices. On Bayut & dubizzle, too, we’ve recorded upwards of 7 million sessions for properties in Sharjah and Ajman over the last six months alone. With these competitive prices and strong rental returns, we can expect demand to stay strong for the Northern Emirates real estate market in the coming months.”

That brings an end to our Sharjah real estate market report H1 2021. As evident throughout the report, the property prices in Sharjah have remained competitive. There has been healthy demand for properties in the emirate, which has helped the market to stay resilient. Similar to Sharjah, other property markets in the UAE have also recorded an impressive performance in the first half of 2021. For a detailed analysis of the estate market statistics of other emirates, be sure to have a read of our H1 2021 sales report of Dubai and Abu Dhabi’s rental report for H1 2021.

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.