UAE: Rents In Sharjah Likely To Remain High For The Next 2 Years

“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).

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

A key factor behind the rising rents is Sharjah's rising population, which has been mirrored across the UAE. According to the Sharjah Census 2022, the emirate's population reached 1.8 million, up from 1.4 million in 2015. The population has seen a spike in the post-pandemic year of 2020 as the UAE's economy bounced back strongly from the impact of Covid-19.

Further fuelling this demand, Sharjah allowed foreign freeholders in late 2022, which provided a significant boost to the local real estate market. Additionally, many new residential and mixed-use projects have been launched by prominent local developers such as Arada, Alef Group, and Shurooq, among others, providing more options for both investors and tenants.

Real estate consultancy Asteco highlighted that Sharjah is leading the northern emirates in terms of new supply and project launches.

As of the third quarter of 2024, rents in Sharjah range from as low as Dh12,000 for a studio to as high as Dh100,000 for a three-bedroom unit, reflecting an increase of three per cent quarter-on-quarter and 16 to 19 per cent rise year-on-year.

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.