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Sharjah's property market is experiencing unprecedented growth in 2025, with transaction volumes surging 48.1% in the first half of the year and foreign investment reaching record levels of AED 8.1 billion.
The emirate has transformed from an affordable alternative to Dubai into a mature investment destination, driven by progressive freehold ownership laws, strategic infrastructure development, and sustained demand from 109 different nationalities.
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Sharjah's residential market posted remarkable growth with property prices rising 3.6% to 51.2% year-over-year across different areas, while rental yields remain the highest in the UAE at 6-8%.
The emirate recorded AED 40 billion in total transactions during 2024, with foreign investors accounting for 30.1% of the total transaction value in H1 2025, representing a 39.4% increase in foreign participation.
| Metric | Current (2025) | Forecast (2026) |
|---|---|---|
| Average Apartment Price/sqft | AED 992-1,273 | AED 1,030-1,320 |
| Average Villa Price/sqft | AED 600-820 | AED 620-850 |
| Rental Yield (Apartments) | 6-8% | 5.5-7.5% |
| Transaction Volume Growth | +48.1% (H1) | +12-15% |
| Foreign Investment Share | 30.1% | 32-35% |
| Price Appreciation Forecast | 3.5-51.2% | 3.5-5% |
| New Units Delivery | 8,000+ units | 12,000+ units |
What are the current average prices per square foot for apartments and villas in Sharjah, and how have they changed in the past 12 months?
Sharjah apartment prices currently average AED 992-1,273 per square foot, while villa prices range from AED 600-820 per square foot as of September 2025.
The apartment market has shown mixed performance over the past 12 months, with some segments experiencing a modest decline of 1.27%, while prime locations like Al Majaz saw dramatic increases of 51.2% year-over-year.
Villa prices have demonstrated stronger appreciation, with luxury segments posting gains of up to 20% year-over-year. Areas like Tilal City and Maryam Island have seen particularly strong performance, with villa listings ranging from AED 1.5 million to AED 5 million in total value.
Waterfront areas like Al Khan and Al Majaz command premium prices, reaching up to AED 12,500 per square meter (approximately AED 1,163 per square foot), while outer communities like Al Suyoh and Tilal City remain under AED 6,000 per square meter.
Rental prices have also increased by 3.7% year-over-year across the emirate, with some high-demand properties experiencing rental increases of up to 25%.
How many residential units were sold in Sharjah last year, and how does that compare with the year before?
Sharjah recorded 15,686 residential sales transactions in the first half of 2025 alone, valued at AED 21.2 billion, representing a 45.1% jump from 10,809 transactions during the same period in 2024.
The full year 2024 saw unprecedented activity with AED 40 billion in total real estate transactions, marking a 48% increase from the previous year.
Transaction volumes have shown consistent monthly growth, with January 2025 recording nearly 80% more transactions compared to January 2024, reaching AED 7 billion in that single month.
The emirate processed transactions across 214 different areas, covering a total land area of 90 million square feet in H1 2025, highlighting the geographic diversity of investment appeal.
Residential properties dominated the sales segment, accounting for 78.9% of all transactions, while commercial properties represented 7.1% and industrial properties 13%.
What is the current rental yield for apartments and villas in Sharjah, and how does it compare to Dubai and Abu Dhabi?
Sharjah offers the highest rental yields in the UAE, with apartments delivering 6-8% gross rental returns and some areas achieving yields as high as 8-9%.
These yields significantly outperform neighboring emirates, with Dubai residential yields averaging 6.78% and Abu Dhabi at 6.97% according to REIDIN data from May 2025.
Villa rental yields in Sharjah typically range from 4-6%, still competitive compared to Dubai's 4.95% and Abu Dhabi's 4.74% villa yields.
The UAE's overall residential rental yield average stands at 4.87% as of June 2025, making Sharjah's performance notably superior for income-focused investors.
Studios and 1-bedroom apartments offer the highest yields due to strong rental demand from expatriates relocating from Dubai seeking more affordable options.
How many new residential projects are expected to be completed in Sharjah in the next two to three years, and how many units will they add to the market?
Sharjah has over 104 off-plan projects currently in development, with major completions scheduled through 2027 and beyond.
Key projects include Aljada (the largest master-planned community with 70,000 planned residential units across 2.2 km²), Masaar (expected completion 2026), and Maryam Island (completion 2027).
Eight new real estate projects were registered in H1 2025 alone, including four residential complexes in Muwailih Commercial, Al-Tay, and Al-Tay West, plus four new towers in various locations.
Major developments like Tilal City, Hayyan at Barashi, and various phases of existing communities will deliver an estimated 12,000+ new units by 2026, with continued handovers through 2027.
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What is the current average rental price for a one-bedroom and a three-bedroom apartment in Sharjah, and how much has it shifted in the past year?
One-bedroom apartment rents in Sharjah currently average AED 35,000-45,000 annually, while three-bedroom apartments range from AED 65,000-85,000 per year as of September 2025.
Prime residential areas have seen studio apartment rents rise from approximately AED 25,000 to AED 30,000, representing a 20% increase year-over-year.
Two-bedroom apartments have experienced similar growth, with rents climbing from AED 60,000 to AED 75,000 in upscale areas, marking a 25% annual increase.
The overall rental market has strengthened with average rents increasing by 3.7% year-over-year across the emirate, though some high-demand properties experienced increases up to 25%.
Rental growth is driven by the large number of expatriates relocating from Dubai to find more affordable options while maintaining proximity to major business centers.
How many foreign investors bought property in Sharjah last year, and what percentage of the total transactions does that represent?
Foreign investors participated in 7,448 property transactions in H1 2025, representing a 40.6% increase from the previous year and accounting for 30.1% of total transaction value.
In 2024, foreign property transactions increased by 84.6%, with international buyers trading over 5,914 properties in just the first half of the year.
The number of foreign investors rose by 39.4% year-on-year to 6,662 in H1 2025, with investments totaling AED 8.1 billion across 3,878 properties.
Sharjah attracted investors from 109 nationalities in H1 2025, compared to 103 in 2023 and 120 in 2024, demonstrating the emirate's growing global appeal.
Indian investors ranked second after Emiratis with 1,525 properties, followed by investors from Syria (969), Egypt (685), Jordan (678), and Iraq (576).
What is the current vacancy rate for residential properties in Sharjah, and how does it compare to five years ago?
Sharjah's residential vacancy rate has decreased significantly due to strong demand, with properties in high-demand locations now averaging 39 days on the market, down from 47 days in early 2024.
Approximately 36% of residential properties are selling at or above asking price, particularly in the mid-market villa and townhouse segments, indicating tight supply conditions.
The rental market shows strong occupancy rates, with limited inventory in new master-planned communities driving competitive conditions among tenants.
Supply constraints in popular areas are creating a competitive environment, with developers actively launching new phases in master communities to meet demand.
Five years ago, Sharjah was primarily viewed as an affordable housing option, but today's market dynamics show a mature investment destination with balanced supply-demand fundamentals.
What is the expected population growth in Sharjah over the next five years, and how many housing units will be required to meet that demand?
Sharjah's population growth is projected at approximately 5% annually through 2025, supported by the emirate's economic expansion and diversification initiatives.
The emirate's GDP has tripled from AED 95 billion in 2010 to over AED 145.2 billion in 2023, with economists forecasting continued growth averaging 6.5% annually through 2025.
This demographic expansion creates organic demand for both residential and commercial space, requiring an estimated 15,000-20,000 new housing units annually to meet growing demand.
The influx of expatriates, particularly from Dubai seeking affordable alternatives, continues to drive housing demand across both apartment and villa categories.
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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.
How many mortgages were issued for property purchases in Sharjah last year, and what was the average loan-to-value ratio?
Sharjah recorded 2,582 mortgage transactions valued at AED 5.7 billion in H1 2025, executed through 24 financing institutions.
The top areas for mortgage activity included Tilal with 194 transactions worth AED 339.2 million, followed by Muwailih Commercial with 167 transactions valued at AED 707.3 million.
Mortgage transactions represented approximately 5.5% of total real estate transactions, indicating strong collaboration between the real estate sector and financial entities.
UAE banks are currently offering mortgage interest rates below 4% with improved lending conditions, supporting 70-30 and 80-20 payment plans for qualified buyers.
The average loan-to-value ratio typically ranges from 70-80% for UAE residents and 60-70% for non-residents, depending on the property type and borrower profile.
What percentage of Sharjah's GDP is linked to real estate and construction, and how has that share evolved over the past decade?
Real estate and construction contribute an estimated 15-20% of Sharjah's GDP, reflecting the sector's significant role in the emirate's economic diversification strategy.
The emirate's GDP growth rate of 6.5% annually is partly attributed to robust real estate activity, with the sector becoming increasingly important since 2022 freehold law reforms.
Economic diversification into sectors like transport, logistics, manufacturing, education, and tourism has created associated real estate demand, expanding the sector's contribution.
Over the past decade, particularly since 2015, real estate has evolved from primarily residential focus to include significant commercial, industrial, and mixed-use developments.
Government investments in infrastructure projects, roads, and public facilities have amplified the real estate sector's economic impact and multiplier effects.
How do property transaction volumes in Sharjah compare to neighboring Dubai and Ajman in the past three years?
| Emirate | 2023 Transaction Volume | H1 2025 Growth Rate | Average Price Growth |
|---|---|---|---|
| Sharjah | AED 27 billion (H1 2025) | +48.1% | 3.5%-51.2% |
| Dubai | AED 20.4 billion mortgages (Q1 2025) | +24% (mortgages) | 15.6% |
| Ajman | Lower volume, higher yields | Moderate growth | 7-9% yields |
| Abu Dhabi | AED 1.7 billion mortgages (Q1 2025) | +6.3% (value) | 18.16% |
What are the government's current and planned infrastructure projects in Sharjah, and how many of them are expected to directly impact property values?
Sharjah government has implemented multiple strategic infrastructure initiatives as part of its comprehensive development vision, focusing on road networks, public transport, and digital services.
The Dubai Metro Blue Line expansion is making well-connected areas more valuable, with properties near public transport infrastructure commanding up to 26% higher prices.
Areas like Al Qasimia are benefiting from improved public transport and road expansions, making them attractive investment options for connectivity-focused buyers.
Major infrastructure investments include road developments, public facilities, and the establishment of business-friendly zones like Sharjah Research Technology and Innovation Park.
These projects are expected to directly impact property values in at least 15-20 key districts, with enhanced connectivity driving premium pricing for well-positioned developments.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Sharjah's property market in 2025 presents compelling opportunities for both investors and end-users, with record transaction volumes, strong rental yields, and continued foreign investment growth.
The emirate's transformation from an affordable alternative to a mature investment destination, supported by progressive legislation and infrastructure development, positions it well for sustained growth through 2026 and beyond.
Sources
- Sands of Wealth - Sharjah Real Estate Market
- Sands of Wealth - Sharjah Price Forecasts
- The Luxury Playbook - Sharjah Real Estate Market
- Fintechnews Middle East - Sharjah Market Trends
- Economy Middle East - Sharjah H1 2025 Growth
- Global Property Guide - UAE Property Analysis
- PSI Blog - Sharjah Market Boom 2025
- Property Finder - Future Projects Sharjah