Bayut.com, the UAE’s data-driven property portal, launched their Year-on-Year real estate Sharjah report with a focus on Sharjah’s residential market’s ready properties.
Average apartment rental price dropped
Al Nahda was the most searched for neighbourhood for apartment renters, with 1-beds renting for AED 37k ($10k) (no change from 2016), 2-beds for AED 45k ($12.2k) (18% lower than 2016) and 3-beds for AED 76k ($20.7k) (11% more affordable than 2016).
The next most popular area for renters was Muwaileh – also the cheapest neighbourhood of the top areas. 1-beds here were leased for an average of AED 30k in 2017 and 3-beds for AED 60k – both the same as 2016. The average rent per annum for 2-beds increased slightly by 1% to AED 44k a year.
The only other increase in asking rent across the popular areas was seen in 2-beds in Al Taawun, where rent increased by 2% to AED51k a year.
Another popular area, Al Khan, saw rents decrease from between 6% and 10% to AED 35k for 1-beds and AED 43k for 2-beds.
When it comes to the most searched for locales for renting villas in Sharjah in 2017, Al Gharayen, Al Jazzet, Mayasaloon, Al Rahamaniah and Al Shahab were Bayut.com’s users top picks.
Apartment prices mostly dropped
In the most popular area for buying apartments in 2017, Al Nahda, the average asking price for 2-bed flats dropped by 6% to AED 580k. The cost of 1-beds and 3-beds were AED 495k and AED 700k respectively. However due to the large number of off-plan listings in 2017, the price change from 2016 is unrepresentative of the actual market.
The next most popular area for buying apartments, Al Khan, saw prices drop across 1, 2 and 3-beds, to AED 467k, AED 824k and AED 1.05M, respectively.
In nearby Al Majaz, prices of 2 and 3 bed units declined to AED 681k and AED 1.07M. However, the price of 1-beds increased by 5% to AED 500k.
In Al Mamzar, the average selling price of 1 and 3-bed remained stable at AED 47k and AED 1M, respectively. However, the price of 2-beds decreased by nearly 16% to AED 715k.
When it comes to villas, Muwaileh was the most popular area for homebuyers, followed by Al Gharayen, Al Tai, Al Rahmaniah and Al Ramla.
The CEO of Bayut.com, Haider Ali Khan, said: “As more and more off-plan projects are completed in 2018, handed over and put on the secondary market, we can expect prices continuing to attract investors while landlords will have to stay competitive to entice potential tenants.”
New mixed-use developments
Sheikh Dr Sultan bin Mohamed Al Qasimi, Supreme Council Member and Ruler of Sharjah, launched three mixed-use projects worth $734 million to be developed by Eagle Hills Sharjah Development, as the emirate looks to boost its retail and tourism industries.
The three mixed-use projects are Maryam Island, Kalba Waterfront, and Palace Al Khan.
Sharjah is attracting high profile projects like Arada’s 2.2 million m2e Aljada mega-scheme announced in 2017.
“Sharjah is witnessing a distinctive boom in its diversified economy which has been attracting various investments from business leaders around the world, making the emirate a premium investment destination for tourism and trade,” said Sheikha Bodour bint Sultan Al Qasimi, chairperson of Shurooq and Eagle Hills Sharjah Development.
Scheduled for completion by the end of 2019, Maryam Island is the largest of the three projects, valued at $650k and covering 460,000 m2. It will comprise 4-5 star hotels, as well as 1,890 luxury apartments and villas, and 100 restaurants, cafes and retail outlets.
Set for completion in Q3 2019, the second project, Kalba Waterfront, is a $43.6m retail scheme has a gross floor area of 17,000 m2 and 86 retail outlets.
Set for completion in Q2 2020, the third project is the $32.7m Palace Al Khan, a luxury waterfront resort in the historic Sharjah city centre, spanning 66,300 m2, comprising 87 hotel rooms, two two-bedroom residential units, nine one-bedroom units and 76 studio apartments.