Ishrath Jaigirdar,
Dubai, UAE
The real estate industry in Sharjah experienced a surge in transaction volume by 13.1 percent in 2023, reaching Dh27.1 billion, a record-breaking value since 2017. According to the Sharjah Real Estate Registration Department, the diversity of investing nationalities expanded to 103, marking 21.2 percent growth from 2022. Non-Arab foreign investors experienced 165 percent increase in trading volume and 131.7 percent rise in the number of properties traded, while mortgage transactions reached a value of Dh7.5 billion. The total number of properties traded by investors from various nationalities surged by 12.4 percent from 27,780 in 2022 to 31,229 properties in the past year.
Property deed transactions rose by 7.5 percent, totaling 24,842, while sales transactions increased to 8,731 across 232 areas, encompassing over 89 million square feet. Utility sale transactions reached 691, amounting to Dh947.2 million. Initial sales contract transactions exhibited growth, with a 38.4 percent increase over 2022, totaling 6,442 and reaching a value of Dh7.5 billion.
Abdulaziz Ahmed Al-Shamsi, Director General of Sharjah Real Estate Registration Department, cited strength and versatility as key drivers of the robust growth in Sharjah’s real estate sector in 2023. The results indicate sustained expansion in the real estate market in terms of size, transactions, area, and investor engagement. This momentum is further propelled by the launch of real estate and urban projects across commercial, industrial, and residential sectors.
The city of Sharjah dominates real estate trades, contributing 90 percent of transactions. 7,859 transactions took place in the city, while the remaining 10 percent were distributed among the central region (434), Kalba (224), Khor Fakkan (193), and Dibba Al-Hisn (21).
At the forefront of real estate activity is the Muwaileh Commercial area, boasting 1,586 transactions and a trading volume of Dh2.1 billion. The area’s transactions predominantly focus on residential properties and lands. Furthermore, the development of beachfront properties in eastern regions like Khor Fakkan, Dibba Al-Hisn, and Kalba have generated much demand among buyers in these areas, leading to substantial growth. The eastern regions contributed to Dh1.2 billion worth of transaction volume in 2023, compared to Dh1 billion in 2022.
The emirate welcomed five new real estate projects, comprising four compounds and one tower. The total area of these projects reached 157,493 square meters, with 14,713 properties traded in real estate development projects throughout the year. New developers have shown keen interest in expanding their portfolios in Sharjah as they have discovered potential in the land bank which is largely underutilised.
Marwan Jassim Al Sarkal, Managing Partner of Chapter 3 LLC and former Executive Chairman of Sharjah Investment and Development Authority (Shurooq), said, “Sharjah is by far has been transforming in the last decade, with projects developed by developers such as Arada, Eagle Hills, and Alef group. They provided an offering similar to what made the real estate market in Dubai promising. The price of property, level of quality, and the return of investment are all positive. This will for sure create interest for new developers to enter the Sharjah market. We have seen Eagle Hills, an Abu Dhabi developer, choosing Sharjah as the first investment in the UAE.”
Over the past year, the Committee for Approving Real Estate Development Projects in the emirate approved 17 real estate projects ranging from complexes to towers. Designed for residential, commercial, and industrial purposes, the projects are now licensed for ownership by both citizens and Gulf nationals.
In terms of trading volume by nationality, UAE citizens played a key role, contributing significantly to the total cash circulation with investments reaching approximately Dh15.3 billion, representing 56.4 percent of the overall sum. Other Gulf nationals followed suit with investments totaling Dh1.6 billion, accounting for 6 percent of the total, while Arab citizens increased their investments to Dh4.3 billion, equivalent to 15.9 percent. Notably, investments by citizens from other countries reached a record high, amounting to about Dh5.9 billion, constituting 21.7 percent of the total investment value.
In terms of the number of properties traded, Emirati investors led the way with 21,876 properties. Investors from India followed, trading 1,469 properties with a total volume of Dh2.8 billion. Syrian investors traded 1,299 properties, valued at Dh1.1 billion. This was followed by investors from Iraq with 609 properties, valued at Dh640.1 million, Jordan with 559 properties, valued at Dh647.4 million, Egypt with 555 properties, valued at Dh536.9 million, and Pakistan with 549 properties, valued at Dh842.2 million.
Shane Breen, Head of Sharjah and Northern Emirates at Savills ME, forecasted the real estate market condition in Sharjah, “More developers will certainly look at potential opportunities in Sharjah, however I don’t expect to see any new entrants to the market in the near future. It’s more likely we will see existing Sharjah developers continue to expand their footprints and launch new projects to capitalise on market demand.”
He further commented on the market’s growth, “Overall economic growth across the UAE, improved sentiment towards real estate investments, availability of quality developments, and changes in ownership laws are the real drivers behind Sharjah’s growth over the past 12-18 months. There is a large portion of Sharjah buyers who are already Sharjah residents and now taking the step to purchase rather than rent.”
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