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Backed by encouraging economic signs

Real Estate strengthens Sharjah’s competitive edge as global investment hub

-Al Mazaya Weekly Report: Sharjah’s advantageous location ensures emirate’s coveted status as preferred investment destination

Sharjah’s real estate sector is on an upward growth trajectory with rising demand coupled with significant affordability in selling and leasing prices over the past few years thanks to the launch of new projects.

The elasticity of government legislation and regulations, as well as the diversity of investment opportunities in the Emirate’s real estate and other primary sectors, are all key factors that have captured the attention of local and international investors.

In this regard, Al Mazaya Holding’s weekly real estate report pointed out that the performance indicators of the Sharjah real estate market look encouraging despite the challenges and pressures faced by economic sectors. Demand for residential properties, either for ownership, leasing and investment purposes, is continuing, driven by the affordability of prices, which efficiently meets the current economic conditions and matches local market performance.

Industry indicators confirm that the  emirate’s real estate sector is witnessing an upward growth trajectory during the current period supported by the emirate’s strategic location amid the country’s other emirates – an advantage which has contributed to boosting economic mobility and helped maintain the emirate’s investment attractiveness as compared with other more expensive investment opportunities in neighbouring Emirates.

Al Mazaya report said that robust plans have been put in place to attract more investments to the emirate for initiating large-scale development projects.

Over the past few years, the number of freehold zones has increased with the objective of providing multiple options for real estate investors of all nationalities who seek to own property as well as pave the way for more commercial, industrial and tourism projects, all of which will contribute to accelerating economic and sectoral growth. This comes at a time when the urban planning authorities in the emirate are considering more expansion plans to meet the expected population growth by 2025.

The report highlighted the accelerated pace of urbanisation outside congested areas in the emirate, noting that competent authorities are now working to develop new housing projects, including villas, to meet the needs of all segments of society, and to ensure the emirate maintains its position as a preferred destination for both home-seekers and investors looking for high returns.

Thanks to its contemporary lifestyle, time-honoured traditional values, premium services, high-end commercial, leisure and hospitality facilities and most importantly affordable prices, the emirate provides more attractive real estate options to local, Arab and foreign investors.

It is worth mentioning that the Emirate of Sharjah has managed to woo investors from 37 nationalities from around the world during the first half of this year, with GCC citizens’ investments having exceeded AED11.8 billion.

Al Mazaya report touched on the indicators of demand and mobility recorded in real estate transactions in the emirate. Official data indicate that real estate deals conducted during 2018 amounted to a record AED22.5 billion for a total area of 52 million square feet. Demand for land and other real estate products continued during the first half of this year, achieving new levels of AED14.7 billion, with the residential sector accounting for 69.7% of the total transactions, followed by retail properties at 17.8%, and then industrial units at 10%. This reflects the considerable economic mobility recorded in all sectors.

It is worth mentioning that the real estate sector in the emirate is now offering suitable options for medium-term investments in light of the prevailing low prices