Sharjah's rental market is projected to remain strong for the next two years, as increasing demand for housing continues to drive prices upward. Industry leaders have observed a rise in rental rates across the emirate, with average increases ranging between 5 to 10 percent. Although this growth is moderate compared to the rapid increases seen in other parts of the UAE, it is still a notable trend.
Population Growth Driving Demand
Sharjah has witnessed significant population growth in recent years, which has had a direct impact on housing demand. According to the Sharjah Census, the population grew from 1.4 million in 2015 to 1.8 million in 2022. The increase was particularly sharp after 2020, as the UAE's economy rebounded strongly from the effects of the pandemic.
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), commented on the trend:
"Rental prices in Sharjah are climbing steadily. I believe this trend will continue for another two years, with rates increasing by at least 5 to 10 percent annually."
Freehold Properties Boost Market
The decision to allow foreign ownership of freehold properties in Sharjah in late 2022 has further strengthened the local real estate market. This regulatory change has attracted investors from around the world, creating additional demand for housing.
Prominent developers such as Arada, Alef Group, and Shurooq have responded by launching new residential and mixed-use projects, which are providing more options for residents and investors alike.
Real estate consultancy firm Asteco has noted that Sharjah leads the northern emirates in terms of new property launches and housing supply, reflecting its growing importance in the UAE's real estate landscape.
Rental Trends and Market Insights
As of the third quarter of 2024, rental rates for residential units in Sharjah ranged from Dh12,000 per year for studios to Dh100,000 per year for three-bedroom apartments. This represents a quarterly increase of 3 percent and a year-on-year rise of up to 19 percent.
Issa Ataya, CEO of Alef Group, highlighted the benefits of the rising rental market:
"The increase in rental prices is a positive development for investors. It reflects the growing demand from both end-users and investors, who are choosing Sharjah as their preferred destination for living and investment. This trend supports the overall economic cycle of the emirate."
Outlook for the Future
With an increasing number of residential projects being developed and strong demand from new residents, the outlook for Sharjah’s rental market remains robust. The emirate is well-positioned to sustain its growth, offering opportunities for property investors while providing a wide range of housing options for residents.
