Due to the inflow of new people into the emirate, rents in Sharjah are predicted to be high for the foreseeable future.
Although this growth rate is slower than in other emirates, industry experts say that rental costs have climbed by 5 to 10 percent.
“Rents are rising in Sharjah. I believe the market will stay high for up to two years. In Sharjah, rents see a minimal increase of 5 to 10 per cent,” said Saeed Ghanem Al Suwaidi, chairman of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry (SCCI).
The growing population of Sharjah, which is reflected throughout the United Arab Emirates, is a major contributor to the rising rents. The population of the emirate increased from 1.4 million in 2015 to 1.8 million in 2022, according to the Sharjah Census. As the UAE’s economy recovered well from the effects of COVID-19, the population experienced a surge in the year after the pandemic in 2020.
In late 2022, Sharjah permitted foreign freeholders, which further fueled this demand and significantly boosted the local real estate market. Prominent local developers including Arada, Alef Group, and Shurooq have also started a number of new residential and mixed-use projects, giving tenants and investors more choices.
Sharjah is setting the standard for new supply and project debuts in the northern emirates, according to real estate consultancy Asteco.
As of the third quarter of 2024, Sharjah rents range from Dh12,000 for a studio to Dh100,000 for a three-bedroom apartment, representing a 3 percent quarterly increase and a 16 to 19 percent annual increase.
Issa Ataya, CEO of Alef Group, noted that the rising rents are “good for investors”.
“Rents are increasing because of growing demand from investors and end-users. People are coming for the sake of living here, hence, contributing to the whole cycle of the economy,” he added.