The Sharjah real estate market is at a crossover where it has now allowed foreign investors, outside of the GCC to buy properties. Furthermore, the recent regulatory reforms will also likely give a boom to the emirate’s property sector in 2023.
The rising cost of living has been a major concern for people living in Dubai. Affordability has now been on people’s minds in Dubai, where tenants in the city are going towards mortgages. They are considering owning properties as a much better option rather than paying the high rents.
On the other hand, many people are now eying Sharjah city due to the comparatively lower rent rates. With the same amenities and lifestyle as Dubai, Sharjah is now gaining attention from renters and investors.
Rent declines in Sharjah
Sharjah has been one of the busiest emirates in the United Arab Emirates. It is the third largest city after Dubai and Abu Dhabi and has become a financial hub for its strategic location. Furthermore, the affordability makes it one of the best one of the places to live in.
According to a few estimates, rents in Sharjah saw a decrease of around 1% to 4% in the last quarter of 2022. This is despite the Sharjah property sector experiencing a full-year sales price performance year-on-year (YoY) improvement of 7 percent in 2022.
It has been on set for continuous improvement without impacting on the rental prices. As a result, it is continuously attracting new foreign dignitaries and expats.
Foreign Ownership of Sharjah Property
The biggest contribution to the growth of Sharjah’s real estate sector has been due to foreign investments. Sultan Bin Mohammed Al Qasimi, who is the deputy ruler of Sharjah, passed a new law in October 2022. According to the law, foreigners can now buy and own property in Sharjah.
The ownership of property was only allowed for UAE residents. Non-UAE or GCC nationals didn’t have permission to enjoy property ownership rights on a freehold basis. However, this move now aims to attract foreign investment and give a boost to the emirate’s real estate market.
Many foreign investors saw it as a positive step towards bringing in more foreign direct investment (FDI) in the emirate’s property sector. Previously, Dubai was the hotspot for foreign investors due to the lucrative opportunities. But with the high prices, they are now looking for different areas.
And Sharjah’s new law has given them the gateway to its real estate market. Allowing foreigners to own properties in 2020 proved pivotal in reshaping Dubai’s property sector. With time, the legal and administrative structure helped Dubai to become the global financial hub it is today.
Government officials hope that the new ownership law will help capitalize on the growing real estate demand in the UAE. It also plans to further reform the laws after testing them in the initial stages.
Growth in the Sharjah’s Real Estate Market
The overall real estate market in Sharjah saw growth last year. There was a record increase in the overall diversity and growth of the asset class. And experts believe that new ownership laws will attract more foreign investment to the emirate.
Investors came from a wider range of countries, and the overall volume of residential property transactions surged. The supplementary bundle of real estate laws released in 2022 gave foreigners and citizens of the GCC more choices for real estate ownership.
It provides a perfect incentive for potential property buyers and investors to look up the residential and commercial properties available in Sharjah. At the same time, it also maintains the perfect balance of the urban distribution and growing population.
Real Estate Outlook for Sharjah
Many people believe that Sharjah’s property sector is on the point of transition and will continue to change in the coming years. According to the data by the SRERD (Sharjah Real Estate Registration Department), the worth of close to 3,000 transactions were worth around $544.5 million (AED2 billion) at the start of this year.
This shows that Sharjah’s real estate market is experiencing a boom. So, if you are looking to purchase a house or invest in a property, then you should start giving it serious thought. Start planning right now to get the long-term benefits!