Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack
Everything you need to know before buying real estate is included in our United Arab Emirates Property Pack
Sharjah has become one of the most attractive rental investment destinations in the UAE, with real estate transactions surging 64% to AED 66 billion in 2025 and investors from 129 nationalities now active in the market.
If you are a foreigner thinking about buying a property in Sharjah to rent it out, this guide will walk you through everything you need to know about yields, costs, regulations, and where to invest.
We constantly update this blog post to reflect the latest market data and trends, so you always get accurate information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sharjah.
Insights
- Sharjah rental yields range from 6% to 9% gross in 2026, which is the highest in the UAE and roughly double what you would find in many European capitals.
- The average vacancy rate in Sharjah sits around 5.8% in 2026, lower than Dubai's 7% to 8%, meaning landlords enjoy steadier occupancy and faster tenant turnover.
- Sharjah rents grew about 8% year-over-year in early 2026, a notable slowdown from the 18% to 25% spikes seen in previous years, signaling market stabilization.
- Properties in newer master-planned communities like Aljada can command rents nearly double those of older buildings in central Sharjah, making building age a critical investment factor.
- Sharjah's new rental index, introduced in 2025, now restricts landlords from raising rents during the first three years of a lease unless mutually agreed with the tenant.
- Short-term rentals in Sharjah average about 57% occupancy with a typical annual host income around AED 41,000, but they require a Holiday Home License from the SCTDA.
- Al Khan now commands the highest average annual rents in Sharjah at around AED 61,700 per year, driven by waterfront views and newer high-end developments.
- Foreign investors accounted for AED 18.5 billion in Sharjah real estate transactions in 2025, with Indian buyers ranking second after Emiratis with 1,525 properties purchased.
Fact-checked and reviewed by our local expert
Ines Benaddi 🇲🇦🇫🇷
Real Estate Agent, Dubai Real Estate
Can I legally rent out a property in Sharjah as a foreigner right now?
Can a foreigner own-and-rent a residential property in Sharjah in 2026?
As of early 2026, foreigners of any nationality can legally own and rent out residential property in Sharjah within designated freehold zones, following the landmark ownership law changes that began in 2022.
The main ownership structures available to foreigners in Sharjah include freehold ownership in approved master-planned communities like Aljada, Tilal City, and Maryam Island, as well as long-term leasehold arrangements in certain other areas.
The most common restriction foreigners face is that freehold ownership is limited to specific designated zones, so you cannot buy just any property anywhere in the emirate and must focus on approved developments.
If you're not a local, you might want to read our guide to foreign property ownership in Sharjah.
Do I need residency to rent out in Sharjah right now?
You do not need to be a UAE resident to own and rent out a property in Sharjah, as the freehold ownership laws allow non-resident foreigners to hold property and collect rental income remotely.
A local tax identification number is generally not required just to collect rent from a standard residential lease in Sharjah, because the UAE does not levy personal income tax on individuals and rental income from real estate investment is typically not treated as a taxable business activity.
While a local UAE bank account is not legally required, it is strongly recommended because most Sharjah tenants pay rent through post-dated cheques or local bank transfers, and having a local account makes collection much smoother.
Managing a Sharjah rental property remotely is entirely feasible if you use a licensed property manager or appoint a local representative with power of attorney to handle lease signings, tenant handovers, and municipality registration through Sharjah Municipality's online services.
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What rental strategy makes the most money in Sharjah in 2026?
Is long-term renting more profitable than short-term in Sharjah in 2026?
As of early 2026, long-term renting is generally the more profitable and reliable strategy for most Sharjah property investors because of strong tenant demand from Dubai commuters, lower operating costs, and simpler regulatory requirements compared to short-term rentals.
A well-managed long-term rental in Sharjah typically generates AED 40,000 to AED 55,000 per year ($10,900 to $15,000 USD or €10,000 to €13,750 EUR) for a one-bedroom apartment, while a well-managed short-term rental might gross AED 41,000 per year ($11,200 USD or €10,250 EUR) but with higher vacancy risk, management fees, and licensing costs.
Short-term renting tends to favor properties in waterfront locations like Al Khan, Maryam Island, or lifestyle communities like Al Mamsha that attract tourists and business travelers looking for furnished stays near attractions or Dubai access points.
What's the average gross rental yield in Sharjah in 2026?
As of early 2026, the average gross rental yield for residential properties in Sharjah is approximately 6.5% to 7%, which is the highest in the UAE and significantly above typical yields in Dubai or Abu Dhabi.
The realistic gross rental yield range that covers most Sharjah residential properties falls between 6% and 9%, depending on property type, location, and building quality.
Apartments in mid-market buildings and townhouses in high-demand areas like Muwaileh Commercial, Al Nahda, and parts of Aljada typically achieve the highest gross rental yields in Sharjah, often reaching 7% to 8.5% gross.
By the way, we have much more granular data about rental yields in our property pack about Sharjah.
What's the realistic net rental yield after costs in Sharjah in 2026?
As of early 2026, the average net rental yield after all landlord costs for residential properties in Sharjah is approximately 4.5% to 5.5%, which still compares favorably to most global investment destinations.
The realistic net rental yield range that most Sharjah landlords actually experience falls between 4% and 6.5%, with apartments at the higher end and villas at the lower end due to higher maintenance requirements.
The three main cost categories that reduce gross yield to net yield specifically in Sharjah are building service charges (which can be substantial in tower developments), property management fees (typically 5% to 8% for remote owners), and the practical cost of tenant turnover including minor refresh work between tenancies.
You might want to check our latest analysis about gross and net rental yields in Sharjah.
What monthly rent can I get in Sharjah in 2026?
As of early 2026, typical monthly rents in Sharjah are around AED 2,500 ($680 USD or €625 EUR) for a studio, AED 3,500 ($950 USD or €875 EUR) for a one-bedroom apartment, and AED 5,000 ($1,360 USD or €1,250 EUR) for a two-bedroom apartment.
A realistic entry-level monthly rent range for a decent studio in Sharjah is AED 1,900 to AED 3,300 ($520 to $900 USD or €475 to €825 EUR), depending on building age and location.
A realistic mid-range monthly rent for a typical one-bedroom apartment in Sharjah falls between AED 3,000 and AED 4,300 ($820 to $1,170 USD or €750 to €1,075 EUR), with newer buildings in Aljada or Al Khan commanding the higher end.
A realistic mid-to-high monthly rent for a typical two-bedroom apartment in Sharjah ranges from AED 4,000 to AED 6,250 ($1,090 to $1,700 USD or €1,000 to €1,560 EUR), with waterfront and premium community locations pushing toward the top.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Sharjah.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Sharjah in 2026?
What's the total "all-in" monthly cost to hold a rental in Sharjah in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental apartment in Sharjah is approximately AED 1,500 to AED 2,200 ($410 to $600 USD or €375 to €550 EUR), excluding any mortgage payments.
A realistic low-to-high monthly cost range that covers most standard Sharjah rental properties is AED 1,200 to AED 2,600 ($330 to $710 USD or €300 to €650 EUR), with apartments in tower developments at the higher end due to service charges and villas sometimes lower on service fees but higher on maintenance.
The single largest contributor to total monthly holding cost specifically in Sharjah is building service charges and community fees, which typically run AED 700 to AED 1,800 per month and can vary dramatically between older buildings and newer master-planned developments.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Sharjah.
What's the typical vacancy rate in Sharjah in 2026?
As of early 2026, the typical vacancy rate for rental properties in Sharjah is approximately 5% to 6%, which is notably lower than Dubai's 7% to 8% vacancy rate and reflects strong tenant demand.
A Sharjah landlord should realistically budget for about three to four weeks of vacancy per year (roughly 6% to 8%) to account for tenant turnover, minor unit refresh, and the re-letting process.
The main factor that causes vacancy rates to be higher or lower in different Sharjah neighborhoods is proximity to Dubai commuter routes and employment hubs, with areas like Al Nahda and Al Taawun enjoying faster tenant absorption than more distant locations.
The time of year that typically sees the highest tenant turnover and vacancy in Sharjah is the summer months from June to August, when many expatriate families relocate or return to home countries, followed by a surge in demand when the school year begins in September.
We have a whole part covering the best rental strategies in our pack about buying a property in Sharjah.
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Where do rentals perform best in Sharjah in 2026?
Which neighborhoods have the highest long-term demand in Sharjah in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Sharjah are Al Nahda, Al Taawun, and Muwaileh Commercial, all of which benefit from strong Dubai commuter traffic and affordable rent levels.
Families in Sharjah gravitate toward Aljada, Al Majaz near the Corniche, and Al Khan/Maryam Island vicinity because these areas offer larger layouts, community amenities, parks, and family-friendly environments with good schools nearby.
Students show the strongest rental demand in Muwaileh Commercial and the University City/Al Juraina area, where affordable rents and proximity to Sharjah's major educational institutions make these neighborhoods the logical choice for academic housing.
Expats and international professionals prefer Al Khan, Al Taawun, Al Nahda, and Aljada because these areas combine modern amenities, waterfront or lifestyle appeal, and convenient access to Dubai employment centers.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Sharjah.
Which neighborhoods have the best yield in Sharjah in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Sharjah are Muwaileh Commercial, Al Qasimia/Abu Shagara, and parts of Al Nahda, where purchase prices remain reasonable but tenant demand is consistently strong.
The estimated gross rental yield range for these top-yielding Sharjah neighborhoods is 7% to 9%, with some well-positioned buildings in Muwaileh Commercial reaching the upper end.
The main characteristic that allows these neighborhoods to achieve higher yields than others in Sharjah is the combination of affordable purchase prices in older or mid-market buildings with deep, stable tenant demand from budget-conscious renters priced out of Dubai.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Sharjah.
Where do tenants pay the highest rents in Sharjah in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Sharjah are Al Khan (including Maryam Island), prime Al Majaz facing the Corniche, and Aljada's premium phases, with Al Khan averaging around AED 61,700 per year ($16,800 USD or €15,400 EUR).
The typical monthly rent range for a standard one-bedroom apartment in these premium Sharjah neighborhoods is AED 4,500 to AED 6,500 ($1,225 to $1,770 USD or €1,125 to €1,625 EUR), with waterfront units commanding even higher premiums.
The main characteristic that makes these neighborhoods command the highest rents in Sharjah is their waterfront positioning, newer building stock with modern amenities, and lifestyle appeal that attracts tenants willing to pay more for quality living rather than just affordable housing.
The typical tenant profile in these highest-rent Sharjah neighborhoods includes senior professionals, business owners, well-paid expats working in Dubai who want a quieter lifestyle, and families seeking premium community amenities without Dubai price tags.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UAE. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Sharjah in 2026?
What features increase rent the most in Sharjah in 2026?
As of early 2026, the top three property features that increase monthly rent the most specifically in Sharjah are included parking (critical in dense areas), proximity to Dubai commuter routes like Sheikh Mohammed Bin Zayed Road, and being in a newer building with quality management and maintenance standards.
The single most valuable feature, included parking, can add a rent premium of 10% to 15% in central Sharjah areas where street parking is difficult and tenants value the convenience.
One commonly overrated feature that Sharjah landlords invest in but tenants do not pay much extra for is ultra-premium kitchen appliances, since most Sharjah tenants prioritize space and location over high-end finishes they rarely use.
One affordable upgrade that provides a strong return on investment for Sharjah landlords is installing split air conditioning units in good condition with modern controls, because tenants in the UAE climate prioritize reliable, efficient cooling above almost everything else.
Do furnished rentals rent faster in Sharjah in 2026?
As of early 2026, furnished apartments in Sharjah typically rent about one to two weeks faster than unfurnished units, particularly for expat tenants relocating from abroad or those seeking shorter-term flexibility.
The typical rent premium that furnished apartments command over unfurnished ones in Sharjah is 15% to 25%, though this premium is most valuable in newer communities like Aljada and Al Mamsha where short-stay and corporate tenant demand is stronger.
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How regulated is long-term renting in Sharjah right now?
Can I freely set rent prices in Sharjah right now?
Landlords in Sharjah can freely set the initial rent price when signing a new lease with a tenant, as there is no government-mandated starting rent and the amount is determined by market agreement between both parties.
Rent increases during a tenancy are now regulated in Sharjah under the 2024 rental law, which prohibits landlords from raising rent during the first three years of a lease unless mutually agreed, and after that period increases must align with fair market value as determined by the Sharjah rental index.
What's the standard lease length in Sharjah right now?
The standard and most common lease length for residential rentals in Sharjah is 12 months, renewed annually, which aligns with typical UAE rental market practices and the new Sharjah rental law framework.
The maximum security deposit a landlord can legally require in Sharjah is typically around 5% of annual rent for unfurnished units (approximately AED 2,000 to AED 3,500 or $545 to $950 USD or €500 to €875 EUR) and up to 10% for furnished units, though these are market norms rather than strict legal caps.
Security deposits in Sharjah must be returned to tenants at the end of the tenancy minus any legitimate deductions for damages beyond normal wear and tear, and the new rental law framework provides tenants with clearer dispute resolution options through the Sharjah Rental Dispute Centre if landlords withhold deposits unfairly.
We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Sharjah in 2026?
Is Airbnb legal in Sharjah right now?
Airbnb-style short-term rentals are legal in Sharjah but require compliance with the emirate's Holiday Homes Project framework, which was launched by the Sharjah Commerce and Tourism Development Authority (SCTDA) in 2022 to regulate vacation rentals.
To operate a short-term rental legally in Sharjah, property owners must register and obtain a Holiday Home License from the SCTDA, which involves submitting documentation, meeting classification and quality standards, and in some cases registering as a company rather than operating as an individual.
Sharjah does not publicly specify a simple annual night cap like some cities do, but the Holiday Homes framework is permission-based, meaning you need proper licensing and must meet ongoing standards rather than just counting nights.
The most common penalty for operating an unlicensed or non-compliant short-term rental in Sharjah includes fines, potential removal from booking platforms like Airbnb, and forced cessation of operations, though enforcement has historically been less strict than in Dubai.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Sharjah.
What's the average short-term occupancy in Sharjah in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Sharjah is approximately 38% to 57%, depending on the data source, with well-managed properties in prime locations achieving the higher end.
The realistic low-to-high occupancy rate range that most Sharjah short-term rentals experience is 25% to 65%, with waterfront properties and those near Dubai access points performing significantly better than inland locations.
The months that typically see the highest occupancy rates for short-term rentals in Sharjah are October through April, coinciding with the cooler tourist season, major events, and when the UAE is most attractive to international visitors.
The months that typically see the lowest occupancy rates for short-term rentals in Sharjah are June through August, when extreme summer heat reduces tourism and many residents leave the UAE for holidays abroad.
Finally, please note that you can find much more granular data about this topic in our property pack about Sharjah.
What's the average nightly rate in Sharjah in 2026?
As of early 2026, the average nightly rate for short-term rentals in Sharjah is approximately AED 200 to AED 360 ($55 to $100 USD or €50 to €90 EUR), depending on property type and location.
A realistic low-to-high nightly rate range that covers most Sharjah short-term rental listings is AED 120 to AED 550 ($33 to $150 USD or €30 to €140 EUR), with basic studios at the low end and premium waterfront apartments at the high end.
The typical nightly rate difference between peak season (November to March) and off-season (June to August) in Sharjah is approximately AED 80 to AED 150 ($22 to $40 USD or €20 to €37 EUR), with peak rates often 40% to 60% higher than summer lows.
Is short-term rental supply saturated in Sharjah in 2026?
As of early 2026, the short-term rental market in Sharjah is not fully saturated but is becoming competitive, with modest occupancy rates around 38% to 57% suggesting that average properties face real competition while well-positioned listings can still perform strongly.
The current trend in active short-term rental listings in Sharjah is growing but from a smaller base than Dubai, with approximately 530 to 1,700 active listings depending on the tracking source, indicating the market is still developing rather than oversupplied.
The neighborhoods in Sharjah that are most competitive for short-term rentals include central areas near older tourist attractions and generic apartment zones without distinctive appeal, where basic listings struggle to differentiate.
The neighborhoods in Sharjah that still have room for new short-term rental supply include emerging lifestyle communities like Al Mamsha and Aljada, waterfront areas around Maryam Island, and locations with easy Dubai access that can capture business traveler demand.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sharjah, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Sharjah Executive Council | Official government body for Sharjah policy announcements. | We used it to confirm foreign ownership eligibility rules in Sharjah. We also referenced it for designated freehold zone information. |
| UAE Official Portal (u.ae) | The UAE government's main public information platform for residents. | We used it to verify the no personal income tax position. We also confirmed indirect tax and fee structures affecting landlords. |
| Federal Tax Authority (FTA) | The official regulator for VAT and corporate tax guidance. | We used it to clarify how rental income is treated for individuals. We also explained VAT implications for short-term rentals. |
| Sharjah City Municipality | The official portal running lease services and rental indicators. | We used it to confirm lease registration and attestation processes. We also grounded remote landlord guidance around real workflows. |
| Emirates News Agency (WAM) | The UAE's state news agency for official legal announcements. | We used it to verify the timing and scope of Sharjah's rental law. We also confirmed tourism volume statistics for demand context. |
| Bayut Sharjah Market Report | A major UAE property portal with transparent listing data methodology. | We used it to estimate 2026 rent levels by unit size and area. We also identified high-demand neighborhoods and yield patterns. |
| Savills Sharjah Research | A top-tier global real estate consultancy with formal research standards. | We used it to understand Sharjah demand drivers and investor activity. We also cross-checked neighborhood demand momentum. |
| AirDNA | A widely used short-term rental analytics provider with consistent methodology. | We used it to estimate STR occupancy and nightly rates in Sharjah. We also modeled short-term revenue potential against costs. |
| Sharjah24 | A Sharjah government-aligned outlet reporting official authority initiatives. | We used it to confirm the official Holiday Homes framework exists. We also anchored Airbnb legality to a named regulator program. |
| Gulf News | A major UAE national newspaper that explicitly cites legal changes. | We used it to translate rental law changes into practical landlord guidance. We also triangulated rent increase and termination rules. |
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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