Sharjah Real Estate Booms Amid Strong Economic Growth

Sharjah’s property sector continued its impressive growth trajectory in 2024, with both residential and industrial markets setting new benchmarks. The emirate’s real estate industry remains one of the most dynamic in the UAE, driven by strong investor confidence and economic expansion.

According to the Sharjah Real Estate Registration Department, the total value of property transactions surged by 48% in 2024 compared to the previous year, reaching AED 40 billion. A growing number of international buyers are fuelling this expansion, with the count of foreign investor nationalities rising from 103 in 2023 to 120 in 2024. This influx underscores Sharjah’s increasing appeal as a global investment destination.

A Thriving Residential Sector

Sharjah’s residential real estate sector has been a key driver of this growth, supported by affordability and favourable ownership laws. Compared to neighbouring Dubai and Abu Dhabi, property prices in Sharjah remain more accessible, prompting a shift towards homeownership. Developers are actively responding to demand by launching master-planned communities with enhanced facilities, such as Masaar, Hayyan, and Al Zahia, which continue to attract investors and end-users alike.

Rising Rental Prices and Occupancy Rates

The rental market in Sharjah has experienced significant appreciation due to high occupancy levels. Apartment rents in prime locations like Al Majaz and Al Qasimiya have jumped by over 22% in 2024. Meanwhile, villa communities remain highly sought after, with four-bedroom villas in Masaar commanding rental rates of up to AED 290,000 per year. The introduction of Sharjah’s new Rental Index is expected to improve market transparency, helping landlords and tenants align rental expectations more effectively and reducing potential disputes.

Booming Industrial Market with Record Growth

Sharjah’s industrial sector has also seen unprecedented rental growth, with average industrial lease rates increasing by 101% over the past four years. In 2024 alone, rental prices in Emirates Industrial City (EIC) and Al Saja’a spiked by 36.4%, while Sharjah Industrial Areas 2-18 (SIA) saw a 28.6% rise. With occupancy levels reaching an all-time high of 95%, the emirate is cementing its position as a regional hub for industrial and logistics operations.

Key Developments Driving Industrial Expansion

New industrial projects such as the MAG Logistic Park in Sharjah Industrial Area 18 and EIC’s warehouse expansion are significantly influencing rental benchmarks. MAG’s Logistic Park, which launched at AED 45-50 per sq. ft. in 2022, has seen new leases surpassing AED 60 per sq. ft., demonstrating sustained market growth. The rising demand for warehouse space has enabled landlords to command premium rates for available units, reflecting the sector’s rapid expansion.

Growing Demand from Key Industries

Sharjah’s industrial boom is fuelled by the rapid growth of transport and logistics companies, as well as increasing activity in the automotive, furniture manufacturing, and steel fabrication sectors. Cargo volumes in the emirate surged by 38.6% in 2024, reinforcing its strategic importance as a logistics hub. However, persistent supply shortages continue to challenge the market, prompting investors to explore the development of high-quality industrial facilities to meet the growing demand.

Shane Breen, Head of Sharjah and Northern Emirates, Savills Middle East commented: "Sharjah’s real estate market continues to grow, driven by strong economic fundamentals, crucial infrastructure growth, and healthy investor confidence. The industrial sector is seeing rising demand from SMEs and large-scale operators, while the limited supply of high-specification stock presents opportunities for developers. On the residential side, shifting buyer demographics and increased foreign investment have led to record transaction volumes. Master-planned communities like Masaar and Al Zahia are attracting both end-users and investors, with affordability remaining a key advantage. With the government’s continued commitment to infrastructure investment and business-friendly policies, Sharjah is strengthening its position as a leading destination for businesses, investors, and residents. We expect sustained market growth in the years ahead.”