Sharjah property market report for Q1 2020: Stable market condition with continued affordability for investors and tenants

• Apartment Sales
• Apartment Rentals
• Villas in Sharjah
• Off-Plan Properties

It’s that time of the year again when Bayut rolls out its quarterly reports based on real estate market trends observed across the four major emirates in the country. With the Abu Dhabi and Dubai property market reports for Q1 2020 already live, it is now time to see how the property prices in Sharjah fared during the first quarter of 2020. For this Q1 2020 real estate market report on Sharjah, we have compared the Q1 2020 property prices in Sharjah with those in Q4 2019.

It is no surprise that the impact of the ongoing COVID-19 situation may have a spillover effect on the economy and the real estate market, leading to predictable fluctuations in property prices in the near future. But prior to the widespread regulations that were brought into effect to fight the pandemic, the property price trends in Sharjah pointed to largely stable market conditions. On the rental end, there is a demand for properties in affordable and well-developed neighbourhoods, located closer to Dubai. Investors on the other hand are more inclined towards communities with family-friendly amenities and upscale lifestyles.

Apartment prices in popular residential areas like Al Majaz, Al Nahda and Al Taawun remain largely unchanged for rent, with minor fluctuations for sales. This stability in prices has ensured the average rental yields also remain healthy, averaging at the 7% mark for most key neighbourhoods.

Let’s look at the detailed trends for property prices in Sharjah for Q1 2020.

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

PROPERTY PRICES IN SHARJAH FOR BUYING APARTMENTS IN Q1 2020

Al Majaz continues to reign as the most popular choice for potential homeowners and investors in search of apartments in Sharjah. With a price per square foot of AED 384 for Q1 2020, Al Majaz is a well-developed and affordable option for people who prefer waterfront locations. The area offers an excellent mix of convenience, recreational facilities and family-friendly amenities for a modern lifestyle and primarily caters to GCC and local investors.

Based on current property listings on Bayut, the price for 2-bedroom apartments for sale in Al Majaz increased from AED 537k to AED 557k between Q4 2019 and Q1 2020. Studio and 1-bed flats in the area are quite popular with investors in search of buy-to-let apartments. These properties go off the market as soon as they’re listed, so the inventory for such units is predictably on the lower side.

Those looking to buy apartments in Sharjah are also keen on the properties in Al Khan. During the first quarter of 2020, the price per sq.ft. for Al Khan apartments on sale witnessed an almost negligible decline of 0.5%, as it went from AED 426 to AED 424. The cost of 2-bed apartments for sale in Al Khan however, increased from AED 735k to AED 769k, pointing to healthy signs of recovery.

Apart from the top two locations, the affordable Al Nahda Sharjah district, the bustling Al Taawun neighbourhood and the well-connected Muweileh with its burgeoning off-plan properties and proximity to Dubai have appealed to prospective homebuyers in Sharjah.

Overall the property prices in Sharjah for apartments on sale have remained competitive with minor fluctuations. It is no surprise that most potential investors and homeowners prefer well-connected, family-friendly areas while looking at apartments for sale in Sharjah. The influx of new properties in the Al Khan and Muwaileh areas have only added more options to the collective portfolio of investment properties in Sharjah, making them more affordable.

AL TAAWUN OFFERS GOOD ROI FOR APARTMENTS IN SHARJAH

According to Bayut’s analysis of property prices in Sharjah, Al Taawun has the highest average rental returns of 7.0% for apartments. The ROI for apartments in Al Majaz is just as good with an average rental yield of 6.9%. Other areas with a healthy ROI include Al Khan and Al Nahda, with rental yields of 6.7% and 6.1% respectively.

While these numbers reflect the overall average ROI for the area, the specific ROI may largely vary according to the property you own 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 Q1 2020

A general overview of the property price trends in Sharjah for rental apartments shows greater stability with minor or no changes in average rent for properties in most areas.

Al Majaz remains the top choice for people in search of rental apartments in Sharjah, with a large chunk of this interest concentrated in Al Majaz 2 and Al Majaz 3. The waterfront community saw barely any changes in apartment rents during the first quarter of 2020, with the exception of studio apartments that saw a 5.9% increase, pointing to increased demand for cosy, reasonably priced units in the area. The average rent for studio flats in Al Majaz went from AED 17k in Q4 2019 to AED 18k in Q1 2020.  Average rentals for 1 and 2-bed flats in Al Majaz averaged at AED 26k and AED 36k respectively.

The second most prominent area that garnered tenant interest is Al Nahda, with people heavily inclined towards the apartments in Sahara Towers, Al Zain Tower and Al Reef Tower. Al Nahda Sharjah saw absolutely no change in the prices for rental apartments. Prices for studio apartments averaged at AED 18k, while the rent for 1-bed apartments in Al Nahda remained stable at AED 27k. Tenants can find 2-bed flats for rent in Al Nahda for an average price of AED 34k.

Ranking third in popularity for renting apartments in Sharjah is the well-established and excellently connected Muwaileh area, and the Muwaileh building in particular. Here too, the prices for rental apartments remained fairly unchanged, with the exception of 1-bed apartments that saw a dip of 4.2%, going from AED 24k in Q4 2019 to AED 23k currently. Prices for studios averaged at AED 14k, while tenants can expect to pay AED 35k on an average for 2-bed apartments in Muwaileh.

Other neighbourhoods popular among tenants in search of flats for rent in Sharjah include Al Taawun, Al Qasimia, Al Khan, Muwailih Commercial, Al Nabba, Abu Shagara and Bu Tina. Amongst these areas, Al Khan, Muwailih Commercial and Bu Tina saw declines in prices between 3 and 10% indicating a tenant-friendly real estate market for apartments in Sharjah.

It is important to note at this point that the average prices for individual apartments for rent in Sharjah may greatly vary from the area average. Unlike the emirates of Dubai and Abu Dhabi, the dynamics of property prices in Sharjah are influenced more by the residential building one opts for, rather than the overall area itself.  So, the rents for apartments in two different buildings of the same area may have substantial disparity based on a variety of factors including building location, amenities, parking availability and so on.

TOP 10 AREAS TO BUY AND RENT VILLAS IN SHARJAH

AL RAHMANIYA IS THE MOST POPULAR COMMUNITY FOR BUYING VILLAS IN SHARJAH FOR Q1 2020

For Q1 2020, Sharjah real estate trends reveal that potential investors and homeowners preferred buying homes in suburban areas. The quaint Al Rahmaniya neighbourhood emerged as the top choice for home-seekers in search of good family homes. According to the current property prices in Sharjah, villas for sale in Al Rahmaniya are priced at AED 1.3M and above.

The swanky Al Azra community ranks second with villas priced between AED 1M and AED 5M as per current listings on Bayut. Located close to the Dubai-Sharjah border, Hoshi is the third most popular option for villas, especially for home-seekers who live in Sharjah and work in Dubai.

Al Noaf with its proximity to Dubai and Sharqan with its contemporary waterfront villas are the fourth and fifth most sought-after areas for houses in Sharjah.

Based on our analysis of property prices in Sharjah, other popular areas to buy villas in the emirate during Q1 2020 include Al Qadisiya, Sharjah Garden City, Al Sabkha, Barashi and Al Ghafia.

AL GHAFIA HAS THE BEST AVERAGE ROI FOR VILLAS IN SHARJAH

Investors looking for lucrative returns on villas in Sharjah can consider the Al Ghafia and Barashi areas, that offer an average ROI of 6.6% and 6.3% respectively. However, it is important to note that these returns may vary depending on property type and the availability of amenities nearby.

Other villa communities in Sharjah offering good rental yields include Al Azra and Hoshi, both of which hit the average ROI mark of more than 5.5%.

SHARQAN THE MOST POPULAR PLACE TO RENT HOUSES IN SHARJAH FOR Q1 2020

When considering property prices in Sharjah for renting homes, the Sharqan area emerged as the winning choice for tenants. This luxurious villa community in Sharjah enjoys proximity to schools, clinics, beaches and restaurants nearby. The property options here are a mix of ultra-modern and traditional villas in 3, 4 and 5-bed layouts. Annual rentals for villas in Sharqan start at AED 55k for 3-bed units, as per current listings on Bayut.

With property prices in Sharjah remaining fairly stable throughout, tenants have also looked for homes in Al Jazzat. Located close to Ajman, this residential community is excellently facilitated with essential amenities and offers a well-connected suburban lifestyle. Potential tenants can find villas in Al Jazzat for as low as AED 32k.

Ranking third and fourth among top areas for villa rentals in Sharjah during Q1 2020 are Barashi and Al Azra, respectively. Both these communities are well-connected residential suburbs that offer luxurious villas and upscale living. On number five, we have Al Rifah – a well-planned villa community with easy access to Sheikh Mohammed Bin Zayed Road (E311) and proximity to Dubai.

Other areas that people are looking at for rental villas in Sharjah include Al Khan, Al Sabkha, Al Ghafia, Al Rahmaniya and Hoshi.

OFF-PLAN PROJECTS IN SHARJAH

Al Zahia in Muwaileh, emerged as the most sought-after off-plan development in Sharjah, fueling investor interest with its variety of property options. Given the well-established infrastructure of Muwaileh, Al Zahia’s popularity among investors is not surprising.

For off-plan investments in Sharjah, potential homeowners and investors are more inclined towards apartments. Off-plan developments in Sharjah like the MISK apartments in Aljada and Blue Bay Walk in Sharjah Waterfront City were also popular choices for investing in apartments.  

For off-plan villas in Sharjah, buyers can consider Al Suyoh 7. The family-oriented suburb is well-connected to the main city, with key educational facilities nearby. During Q1 2020, Nasma Residence in Al Tai also garnered investor interest for off-plan villas in Sharjah.

That brings us to the end of this real estate market analysis of property prices in Sharjah for Q1 2020.

If you’d like to keep up-to-date about the property prices in the other emirates, Bayut’s Q1 2020 Dubai Market Report and the Q1 report for Abu Dhabi is already up and live on the Market Trends section of the blog.

Also, do subscribe to MyBayut so that you don’t miss out Bayut’s Ajman Q1 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.