Sharjah is to enlist private sector partners to develop government-owned land, which will be a big boost for its real estate and construction sectors.
The aim? In a statement released by the Sharjah Executive Council, it was said that the goal was to “reclaim them (the land) in a way that contributes to attaining comprehensive development in the emirate”. It should be viewed in light of Sharjah’s decision to permit freehold sales and titles to people of all nationalities late last year.
According to feedback from the market, it sparked a fresh wave of purchases of real estate in developments from Arada and Majid Al Futtaim Communities in the closing weeks of 2022. The pattern has continued into this year, and developers anticipate a rise in off-plan launches.
The Sharjah Executive Council’s most recent decision calls for the beginning of “major economic projects” and the encouragement of investment prospects. Public-private partnerships can help with this by allowing land to be sold at a profit.
In accordance with predictions of population increase and the ensuing demand for housing, Sharjah believes it is necessary to incorporate more areas into urban development. There are currently more than 1.7 million people living in the emirate.
New ‘suburban councils’
At its meeting, the Council also discussed the accomplishments of the 15 suburban councils in the emirate. These organisations keep an eye on 96 residential zones. According to “population growth and urban expansion in the cities and regions” of Sharjah, there are plans to increase the size of the suburban councils.
Many businesses are choosing to establish offices in Sharjah. Its industrial centres and free zones are proving to be highly popular, and it is thought that this would increase demand for residential buildings as well. (The number of licences awarded for commercial, professional, industrial, and other activities increased by 11% in 2022.)
Rental situation
Market data indicate that Sharjah’s residential rents remain trapped in a restricted growth range, with some evidence suggesting that prices in sought-after neighbourhoods actually decreased in the last three months of 2022 as freehold properties were delivered. Also, as more towers were turned over, tenants were more likely to move into brand-new, higher-quality housing options.
According to sources, this year’s rents may climb as a result of increased economic activity and higher apartment occupancy rates.