Posted inNews

Sharjah real estate market booms in Q1 2024: Transactions reach $2.7 billion

In Q1 2024, residential transactions dominated the real estate market in Sharjah, making up 80.9% of all transactions

Sharjah real estate market booms in Q1 2024: Transactions reach $2.7 billion

The quarterly report on the real estate sector performance from the Sharjah Real Estate Registration Department reveals that there were 23,478 transactions in total, showing a 9.3% increase from the previous year. Additionally, the total area traded was 28.3 million square feet. Moreover, in Q1 2024, the real estate sector in Sharjah saw a significant increase in trading value, reaching $2.7 billion (AED 10 billion), a 67.1% rise from the previous year. This growth can be attributed to the surge in sales transactions, including sales, usufruct sales, and initial contracts, which totalled 6,146 transactions, compared to 3,011 transactions in the same period last year.

Abdul Aziz Ahmed Al Shamsi, Director-General of Sharjah Real Estate Registration Department, explaining this positive momentum says, “Thanks to the directives of H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, and thanks to the follow-up of H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince, Deputy Ruler of Sharjah and Chairman of Sharjah Executive Council, Sharjah Government has always been the first to provide all forms of support and assistance to the real estate sector in the emirate, and has been keen to strengthen its position as a distinguished investment destination.”

“Besides, this increase in trading activity reflects people’s aspirations to own property and invest in Sharjah, especially since the emirate is witnessing all types of development, which has been reflected positively on the real estate market. Among the direct incentives for this increase are also the profusion of development projects, and the ownership facilities for non-citizens and GCC nationals to own real estate in Sharjah.”

He continues, “The increase in trading activity reflects people’s aspirations to own property and invest in Sharjah, especially since the emirate is witnessing all types of development, which has been reflected positively on the real estate market. Among the direct incentives for this increase are also the profusion of development projects, and the ownership facilities for non-citizens and GCC nationals to own real estate in Sharjah.”

He further adds, “The diversity of real estate projects launched by the government in various regions of the emirate, in addition to its establishment, sponsorship, and participation in many events and exhibitions, such as Sharjah Real Estate Exhibition (ACRES), which is organised yearly, have all contributed to highlighting the many investment opportunities that Sharjah abounds, enhancing confidence in the real estate field in the emirate, succeeding in attracting foreign direct investments, new developers, and continuously revitalising the market.”

Which areas topped the chart in Sharjah?

Muwaileh Commercial area ranked the highest in terms of sales transactions with a total of 481 transactions, followed by the areas of (Rawdat Al-Qart, Al-Mazairah, and Al-Khan).

As for Usufruct Sale transactions, it reached 199 with a total value of $69.132 million (AED 255.6 million) with the Muwaileh Commercial area topping the list again with 73 transactions. While Um Fannain area had the highest share in terms of trading value through 44 transactions.

Residential transactions leading from the front

As per the report, residential transactions made up the majority of real estate transactions at 80.9%, with a total of 2,242 transactions. Commercial transactions followed with 254 transactions, accounting for 9.1% of the total, while industrial transactions accounted for 8.6% with 237 transactions. Agricultural transactions made up the smallest portion at 1.4%, with a total of 38 transactions.

Moreover, the total number of properties traded in the emirate reached 2,771, topped by residential lands with 1,052 properties, followed by residential apartments of 700, then residential built-in lands with 397, and finally industrial lands with 160 properties.

Al Shamsi mentions, “The number of real estate projects registered in the emirate reached five projects, including 4 new real estate projects and a new phase of one of the major existing projects. The new projects varied between residential and commercial projects, including 3 complexes and two towers.”

Investors doing the talking

In the first quarter of 2024, investors from 94 different nationalities contributed to the growth of Sharjah. UAE citizens led the way with a total investment of $1.616 billion (AED 4.4 billion) in 7,628 properties. GCC citizens, excluding Emiratis, followed with an investment of $168 million (AED 625.5 million) in 347 properties. Arab citizens also made a significant contribution, investing $567 million (AED 2.1 billion) in 1,762 properties. Additionally, citizens from other countries invested $756 million (AED 2.8 billion) in 1,739 properties, highlighting the diverse range of investors contributing to Sharjah’s development.

The top five nationalities that invested in properties in Sharjah were Emiratis, Indians, Syrians, Pakistanis, and Jordanians. Emiratis hold the highest number of properties at 7,628, followed by Indians with 683, Syrians with 484, Pakistanis with 275, and Jordanians with 227 properties.