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What will happen in Sharjah’s real estate market? Will prices go up or down? Is Sharjah still a hotspot for foreign investors? How is the UAE government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who buy properties in Sharjah, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) New visa rules will simplify property purchases for foreign investors in Sharjah
The introduction of new visa regulations is making it easier for foreign investors to purchase property in Sharjah.
In 2023, Sharjah's real estate market saw a 165% surge in foreign investments, with non-Arab investors increasing their property trades by 131.7%. This momentum carried into 2024, with a 22% rise in foreign investors during the first half of the year, and their cash trading volume hitting AED8.3 billion, marking a 115% growth.
These relaxed visa rules are also making it easier for expatriates to settle in nearby Abu Dhabi, which is expected to boost Sharjah's appeal due to its proximity and affordability. With a rising demand for affordable housing near Dubai, Sharjah is becoming an attractive option for expatriates.
The buzz around Sharjah as an emerging real estate market is drawing more foreign investment and attention. The increased interest from foreign investors has led to a diversification of nationalities investing in Sharjah’s real estate market, with 103 nationalities involved in 2023, marking a 21.2% growth compared to 2022.
Government initiatives like simplifying procedures, reducing fees, and promoting transparency have made doing business easier and boosted investor confidence. This is evident in the launch of new residential projects like Arada's Aljada and Masaar developments, which offer various housing options for expatriates.
Sources: AGBI, Property Finder, Next Level Real Estate
2) Foreign interest in Sharjah's real estate will rise as its cultural heritage gains global recognition
Foreign interest in Sharjah's real estate is on the rise as the city gains international recognition for its cultural heritage.
In the first half of 2024, Sharjah saw a remarkable 22% increase in foreign investors compared to the previous year. Their cash trading volume also soared by 115% to AED8.3 billion, highlighting a strong and growing interest from international buyers.
Sharjah's cultural events, like the Sharjah Light Festival and the Sharjah Biennial, are major attractions. These events not only showcase the emirate's rich history and vibrant arts scene but also draw visitors from around the world, boosting the city's global profile.
Moreover, Sharjah's recognition as a UNESCO Creative City for Crafts and Folk Art has further enhanced its international appeal. This accolade, along with awards like the ICCROM Sharjah Award, underscores the city's commitment to cultural preservation, making it an attractive destination for those interested in cultural heritage.
Sharjah's strategic location and cultural richness are key factors in its growing real estate market. The city's unique blend of tradition and modernity offers a compelling reason for investors to consider it as a prime location.
As Sharjah continues to gain international recognition, its real estate market is expected to thrive, drawing more foreign investors eager to be part of its cultural and economic growth.
Sources: Euronews, Bayut, AGBI
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.
3) Sharjah’s property prices will rise steadily as infrastructure keeps improving
Residential property prices in Sharjah are on the rise, thanks to ongoing infrastructure improvements.
One standout project is the $102 million road network upgrade announced in July 2023, designed to ease the commute between Sharjah and Dubai. This includes four new bridges, boosting the road's capacity to handle 17,600 vehicles per hour, making daily travel smoother for everyone.
In February 2023, the National Rail Network was completed, linking all seven emirates. A key feature is the passenger station near the University City of Sharjah, which is expected to serve 14,000 daily passengers during the week. This makes Sharjah more accessible and appealing to those considering a move.
Sharjah's population is growing, driven by expatriates seeking affordable housing and a family-friendly vibe. This influx has increased demand for homes, especially in the affordable segment. Apartment prices range from Dh601,000 to Dh1.01 million, reflecting this strong demand.
Commercial and retail developments are also drawing more people to Sharjah. Take the Ajwan project in Khorfokkan by Shurooq, for example. It features 185 apartments, a water park, and a hotel, with 60% of units already sold. Such projects not only enhance living standards but also push property values up.
Sources: Oxford Business Group, Smart Zone, AGBI
4) Rents in Sharjah will rise as the population grows and housing supply remains limited
Sharjah's population has surged by 22% to 1.8 million from 2015 to 2023, mainly due to expatriates flocking for jobs and education.
With more people arriving, housing demand is skyrocketing. The real estate market is buzzing, with transaction volumes up by 14.6% in 2023, and values exceeding AED 19 billion. Occupancy rates are over 87%, and the hottest properties are snapped up fast.
Even with new projects like Aljada and Maryam Island, housing supply can't keep up. Urban plans show limited room for expansion, meaning land and housing will stay tight. This supply-demand gap is pushing rents higher.
Tenants are already seeing rents jump by up to 25% when renewing leases. In contrast, Dubai and Abu Dhabi see increases of just 5% to 10%. The high cost of living in Dubai is driving more people to Sharjah, adding to the demand.
Sources: The Gulf Entrepreneur, The National News, Savills Report
5) Rents in central areas will rise significantly due to high demand for rentals
The demand for rental properties in central Sharjah is set to push rents up significantly.
Sharjah's population has surged by 22% from 2015 to 2023, now standing at 1.8 million. This growth, especially among expatriates, is driving the need for housing in central areas. The city's vibrant job market, with over 60% of people working in construction, healthcare, and IT, attracts even more expatriates, further fueling the demand for rentals.
Despite new developments, there's a limited supply of new rental properties in these sought-after areas, which naturally pushes prices higher. The rental market is booming, with lease renewals jumping by 18-25% in 2023 and 2024. This shows a strong demand that could keep prices climbing.
Looking back, both apartment sales and rental prices have increased by up to 24% in high-demand areas. This isn't just a blip; it's a long-term trend. The central areas are particularly popular, and with limited new properties, the competition is fierce.
For those considering buying property, understanding these dynamics is crucial. The central areas are not just about convenience; they're about being part of a thriving community. The influx of workers and limited housing options make these areas a hotbed for rental demand.
Investors and potential buyers should keep an eye on these trends. The combination of a growing population, a strong job market, and limited housing supply is a recipe for rising rents. This makes central Sharjah an attractive option for those looking to invest in property.
Sources: Bayut’s Annual Sharjah Market Report 2023, Sharjah Census Reveals Population Grew 22 Per Cent in Eight Years, Sharjah Rental Market: 25% Hikes in 2024, Similar Forecast for 2025
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6) More foreign buyers will choose Sharjah for its affordability over Dubai
Sharjah is becoming a hotspot for foreign property buyers because it's more affordable than Dubai.
Imagine renting a cozy 1-bedroom apartment in Sharjah's city center for AED 3,377.75 a month, while the same place in Dubai would set you back AED 8,187.91. That's a huge difference in cost, making Sharjah a smart choice for those looking to save money.
Investors are also eyeing Sharjah for its promising returns. Rental yields are higher here, meaning you get more bang for your buck. By 2025, rents for studio apartments are expected to jump from AED 25,000 to AED 30,000 annually, showing a strong rental market.
Living in Sharjah is easier on the wallet too. Utilities for an 85-meter apartment cost just AED 631.23, much cheaper than in Dubai. This lower cost of living is pulling in more expats, with the population growing by 22% to 1.6 million, boosting housing demand.
Sharjah's affordability isn't just about rent and utilities. It's a place where your money stretches further, allowing for a comfortable lifestyle without the hefty price tag of its glitzy neighbor.
With more people discovering these benefits, Sharjah is set to attract even more foreign buyers looking for value and a good return on investment.
Sources: Property Finder, Top Luxury Property, The National News
7) Rental yields in Sharjah will rise as rental demand exceeds supply
Sharjah's population has grown by 22% since 2015, now reaching 1.8 million, largely due to a thriving expatriate community.
With a 22% increase in the working population, now at 1.1 million, job opportunities are drawing more people to the area, pushing up rental demand.
Even with new developments, housing supply can't keep up with demand, allowing landlords to benefit from the situation with higher rental yields.
Historically, Sharjah's rental market has been on a roll, with rental increases of 18-25% on renewals, showing a steady rise in rental yields.
For those considering property investment, the limited housing inventory and growing demand make Sharjah an attractive option.
As demand continues to outpace supply, rental yields are expected to keep climbing, making it a promising market for investors.
Sources: The National News, The Gulf Entrepreneur
8) Rental yields for mid-range properties will rise steadily as they appeal to a wider audience
Mid-range properties in Sharjah are becoming a hot commodity, drawing interest from a diverse crowd.
Sharjah's population has surged by 22% since 2015, hitting 1.8 million in 2023, with many newcomers being expatriates looking for affordable homes. This influx is a big reason why mid-range properties are in demand.
As living costs in nearby Dubai rise, more people are eyeing Sharjah as a cheaper option, which naturally boosts the appeal of mid-range housing. This trend is likely to continue, leading to better rental returns for these properties.
The Sharjah government is also playing a part by offering incentives like freehold ownership for Emiratis and long-term visas for investors. These moves are making mid-range properties even more attractive, paving the way for higher rental yields.
Sharjah's infrastructure is getting a facelift, with better transport options making it more appealing for both residents and businesses. This improved connectivity means mid-range properties offer a sweet spot of affordability and convenience, making them a top choice.
With these factors in play, mid-range properties are set to see a steady rise in rental yields, catering to a broader audience.
Sources: Bayut’s Annual Sharjah Market Report 2023, Sharjah Census Reveals Population Grew 22 Per Cent in Eight Years, Is Sharjah the Next Big Thing in UAE Real Estate?, Sharjah's Expanding Transport Infrastructure Helps Meet Rising Demand, Sharjah Real Estate Market Forecast 2025
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.
9) Demand for larger homes in Sharjah will grow as family-friendly communities become more popular
Sharjah's population has grown by 22% from 1.4 million in 2015 to 1.8 million, attracting many expatriate families.
With 245,000 expatriate families now calling Sharjah home, there's a noticeable shift towards larger housing options like villas and spacious houses, perfect for family life.
The government is actively enhancing infrastructure and amenities, making Sharjah a top choice for families seeking affordable yet quality living, which in turn boosts the demand for bigger homes.
Recent real estate trends highlight a preference for larger units, as families are increasingly valuing space and privacy, with a keen interest in properties offering outdoor activities and private gardens.
Sharjah's appeal lies in its blend of affordability and quality, drawing families who prioritize community-oriented living and spacious environments.
As more families settle in, the demand for larger residential units is expected to rise, driven by the city's commitment to family-friendly infrastructure and amenities.
Sources: Dubai Eye 103.8, The National News, Westside Today
10) Virtual reality tours will transform how buyers view properties in Sharjah
Virtual reality tours are changing how people buy property in Sharjah.
Imagine exploring a home without leaving your couch. That's what VR tours offer, and they're becoming a big deal in Sharjah. Real estate agencies are teaming up with big names like PropertyFinder and Dubizzle to make this happen. Thanks to high internet speeds and smartphone use in the UAE, checking out properties online is a breeze.
People love these virtual tours. In fact, 50% of buyers prefer them over just looking at photos. In the UAE, homes with virtual tours are getting up to 85% more online bookings. This shows how effective VR is at grabbing buyers' attention.
There's more to it. Homes with virtual tours not only sell faster but also for more money. We're talking 9% higher prices and 31% quicker sales. It's a win-win for both buyers and sellers.
Thanks to tech advancements, VR is now more affordable and accessible. Buyers are thrilled with the realistic experience it offers. As the UAE's real estate market goes digital, virtual tours are becoming a must-have for anyone looking to buy property.
Sources: PhotoUp, Jawla360, Digital CXO, LookAround
11) Sustainable housing development in Sharjah will grow due to tax incentives for green buildings
Sharjah is making waves in sustainable housing with its new tax incentives for green buildings.
In 2023, Sharjah introduced its Sustainable Financing Framework, a strategic move to fund green projects, including those with green building certifications. This initiative is part of Sharjah's broader plan to align with its net-zero target and the UAE Centennial 2071 plan, paving the way for a sustainable future.
The UAE Sustainability Built Environment Blueprint reveals that the built environment could slash emissions by 81.4% by 2030, making it a key player in achieving the UAE's net-zero goals by 2050. By unifying green building policies across the emirates and boosting awareness of eco-friendly materials, Sharjah is tackling embodied emissions head-on.
Sharjah Sustainable City, a collaboration between Shurooq and Diamond Developers, is a shining example of the emirate's dedication to sustainability. This project is 100% solar-powered and recycles all water and waste, highlighting the potential of sustainable housing. The first villas were handed over to owners in 2022, proving that such developments are both viable and attractive.
Sharjah's efforts are not just about reducing emissions; they are about creating a livable, sustainable future. The city's focus on green building policies and materials is a testament to its commitment to environmental responsibility.
With these initiatives, Sharjah is setting a precedent for sustainable urban development, showing that eco-friendly living is not just a dream but a reality. The emirate's approach could serve as a model for other regions aiming to achieve similar sustainability goals.
Sources: UAE's Commitment to Zero Carbon, UAE Sustainability Built Environment Blueprint, Sharjah’s Sovereign Sustainable Financing Framework
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12) Rental prices in popular neighborhoods will rise as more expatriates move in
Sharjah's rental prices are climbing due to a surge of expatriates moving in.
Over the past few years, Sharjah's population has grown by 22%, reaching 1.8 million, with a substantial portion being expatriates. This demographic shift has increased the demand for housing, particularly in areas that offer proximity to Dubai and affordable living options.
With 61% of the population actively working, there's a big push for rental homes. The number of students has also jumped by 23% from 2023 to 2024, showing that expatriate families are on the hunt for places to live. This has led to rental market growth in Sharjah, with lease renewals rising between 18-25%, outpacing Dubai and Abu Dhabi.
Government moves, like allowing full real estate ownership for non-GCC nationals, have drawn more expatriates, boosting housing demand. Infrastructure upgrades, such as the Sharjah Ring Road expansion, make commuting to Dubai easier, making Sharjah more attractive for those working in Dubai.
These elements have created a competitive rental scene, with prices steadily increasing in sought-after areas.
Sources: The National News, Khaleej Times, JobxDubai Blog
13) Luxury waterfront properties in Al Khan will attract high-net-worth individuals as it becomes a hotspot
Al Khan is quickly becoming a prime spot for luxury waterfront properties, drawing in high-net-worth individuals.
One of the main reasons is the significant rise in property values in the area. Take Sapphire Beach Residence, for instance, where luxury apartments are selling at impressive prices, showing just how strong the demand is.
There's also been a surge in investment for waterfront development projects. Ajmal Makan Sharjah Waterfront City is a standout, offering stunning beachfront communities and villas that are setting new living standards in Sharjah, making Al Khan a magnet for affluent buyers.
Government initiatives have been a game-changer too. With improved transportation links, like new bus routes and dedicated lanes, connectivity between Dubai and Sharjah has never been better, making Al Khan more accessible and attractive to both residents and investors.
The ripple effect of Dubai's booming real estate market is also felt in Al Khan. The growing demand for luxury properties in Sharjah is pulling in high-net-worth individuals eager to invest in the area, as seen in the sale of high-end residential units.
Al Khan's appeal is further boosted by its strategic location and the lifestyle it offers, making it a top choice for those looking to invest in luxury waterfront living.
Sources: Property Finder, RTA, Kanebridge News ME, Bayut, Evendo
14) Property prices in suburban areas will rise moderately as demand for affordable housing grows
The demand for affordable housing is nudging up property prices in suburban areas.
In Sharjah, the metro area is buzzing with growth, seeing a 2.52% population increase in 2023 and another 2.24% rise in 2024. This surge in people, along with urbanization, is pushing the need for more homes.
Government projects are making a splash too. Take the Dh1.1 billion Mahdub suburb development, which is set to include housing, commercial centers, schools, and nurseries. These kinds of infrastructure upgrades are making suburban living more appealing, adding to the demand.
People are also leaning towards the suburbs for their lower costs and bigger spaces. Surveys show a clear preference for affordable housing, which is easier to find outside the city. This trend is backed by more mortgage approvals for first-time buyers, hinting at a growing interest in owning homes.
Suburban areas are becoming hotspots for those looking to stretch their money further. The combination of government support and a shift in living preferences is creating a sweet spot for property buyers.
As more people flock to these areas, the demand for affordable housing is expected to keep property prices on a steady climb.
Sources: Top Luxury Property, Macrotrends, The National News
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.
15) Luxury property prices in Sharjah will stay steady as the market becomes saturated
Luxury property prices in Sharjah are holding steady as the market seems to have hit a saturation point.
One reason for this stability is the high inventory levels of luxury homes. Back in May 2024, the market saw a trading volume of AED 4 billion, but this was due to more transactions, not higher prices. So, while there's plenty of action, prices aren't shooting up.
People are also looking for more affordable places to live. About 66% of new tenants in Sharjah's prime spots have moved from Dubai, hunting for cheaper options. This shift means fewer folks are eyeing those high-end properties, which helps keep prices stable.
On top of that, the pace of building new luxury homes has slowed. Even though trading volumes went up in early 2024, new developments haven't matched that pace. This slowdown helps balance out supply and demand, keeping prices from going wild.
Sharjah's market is buzzing, but it's not just about luxury anymore. The focus is shifting, and buyers are exploring different options, which is a big reason why prices aren't climbing.
So, if you're thinking about buying in Sharjah, know that the market is active but not overheated. Stable prices mean it's a good time to explore what's out there without the fear of sudden price hikes.
Sources: Savills Middle East, Top Luxury Property, Top Luxury Property
16) Property prices will stabilize temporarily in some areas due to new developments
In 2023 and 2024, Sharjah experienced a notable surge in new residential projects, including developments like Citrine Residence and Darb 5.
This boom in construction permits signals a growing wave of new developments, which is crucial for balancing the housing market. When more homes hit the market, it can help stabilize property prices temporarily.
Historically, new developments have led to a temporary stabilization of property prices as the market adjusts to the increased supply. This pattern isn't unique to Sharjah; similar trends have been observed in other UAE cities, like Dubai.
For potential buyers, this means a window of opportunity where property prices might not skyrocket immediately, offering a chance to invest before the market fully absorbs the new supply.
Insider knowledge suggests that areas with new projects often see enhanced infrastructure and amenities, making them more attractive to buyers and investors alike.
Keep an eye on these developments, as they can offer valuable insights into future market trends and potential investment opportunities.
Sources: Property Finder, Top Luxury Property
17) Rental yields in suburban areas will drop as more properties become available
Suburban areas in Sharjah are seeing a boom in new residential developments, with projects like Citrine Residence and Darb 5 adding more homes to the market.
The Sharjah government is actively issuing more construction permits, leading to new housing projects such as Hayyan and Al Gitanah Residential Compound 1. This surge in new builds means there are more homes than renters, potentially increasing vacancy rates.
With a growing inventory of unsold or unleased properties, landlords are feeling the pressure. To attract tenants, they might have to lower rental prices, which could reduce rental yields in these suburban areas.
Reports indicate that rental prices in suburban areas aren't climbing as fast as in urban centers. This suggests that rental prices might stabilize or even drop in the suburbs, especially compared to the high-demand urban areas.
As more properties become available, the competition among landlords intensifies. This could lead to more attractive rental deals for potential tenants, further impacting rental yields.
For those considering buying property in Sharjah's suburbs, it's worth noting that the market dynamics are shifting, with more options and potentially better deals on the horizon.
Sources: Property Finder, The Gulf Entrepreneur, Oxford Business Group
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18) Demand for senior-friendly housing in Sharjah will grow as the population ages
Life expectancy in the UAE is projected to reach 78.74 years by 2025, meaning people are living longer.
With this increase in longevity, the elderly population is naturally growing, creating a demand for senior-friendly housing. The UAE has introduced a renewable five-year retirement visa for foreigners aged 55 or older, which has made Sharjah an attractive destination for retirees.
This policy shift has encouraged many retirees to settle in Sharjah, prompting local developers to explore opportunities in senior housing, particularly in independent and assisted living. Developers are keen to tap into this emerging market, recognizing the potential for growth in senior housing.
Government statistics reveal a rising percentage of the population over 60. By 2025, the elderly population in the GCC is expected to make up 18.5% of the population, up from 14.2% in 2020. This trend is expected to continue, with the median age rising significantly over the coming decades.
In Sharjah, this demographic shift is driving demand for senior-friendly housing developments. Local developers are increasingly focusing on creating communities that cater to the needs of older residents, offering amenities and services tailored to their lifestyle.
As the population ages, the need for senior housing options will only grow, making it a promising area for investment. This trend is particularly notable in Sharjah, where the combination of a growing elderly population and favorable policies is creating a unique opportunity for property buyers.
Sources: Macrotrends, AGBI, PwC
19) The housing market will diversify with more property options as more expatriates move in
The number of expatriates in Sharjah has surged, with the population now at 1.8 million, and over 1.2 million of them are expatriates.
This influx is reshaping the housing market, as people from varied nationalities and backgrounds seek homes that fit their lifestyles and budgets. From affordable apartments to luxury villas, the options are expanding to meet these diverse needs.
Projects like Sharjah Sustainable City are thriving, with sales transactions surpassing Dh2.5 billion. These developments blend residential, commercial, and recreational spaces, appealing to a wide range of preferences and income levels.
Such mixed-use projects are a direct response to the growing interest from the expatriate community, offering more than just a place to live but a lifestyle that suits their varied tastes.
As more expatriates settle in Sharjah, the housing market is becoming more dynamic, with increased demand for diverse property offerings. This trend is not just about numbers but about creating communities that reflect the rich tapestry of cultures and lifestyles.
Expect to see more innovative housing solutions as developers respond to this diversifying market, making Sharjah an exciting place for property investment.
Sources: The National News, Khaleej Times
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.