Bayut & dubizzle’s Sharjah Annual Market Report 2021

• Apartment Sales
• Apartment Rentals
• Buying and Renting Villas
• Featured Off-Plan Projects

Sharjah’s property market demonstrated consistent demand throughout 2021, with areas like Al Khan, Aljada and Al Majaz remaining firm favourites among residents. This is thanks to an array of family-friendly amenities and easy connectivity. Additionally, Al Majaz and Al Taawun have also taken the lead in terms of healthy rental yields exceeding 5.4%.

Apartment rents fell or held steady in most popular areas of Sharjah, while Al Khan rents rose by up to 25.65%. There has also been considerable interest observed for off-plan developments in areas such as Al Tai, Aljada and Muwaileh.

Popular Areas to Buy Apartments

Al Khan has emerged as the most popular area to buy apartments in 2021. Al Majaz, Aljada, Al Nahda and Al Taawun have also garnered the attention of those keen on purchasing flats in the emirate.

Al Khan

The apartments for sale in Al Khan have been the top choice for buyers in Sharjah in 2021. The area offers a convenient waterfront lifestyle with the added advantage of short commutes to Dubai. Averaging at AED 815.72, the price-per-square-foot of flats in Al Khan has experienced a noticeable increase of 23.47%, mainly driven by the influx of upscale apartments on Maryam Island.

• The average price of 1-bed apartments for sale in Al Khan has remained attractive at AED 528k, while 2-bed flats have averaged at AED 797k.
• On the other hand, the more spacious 3-bed flats for sale have averaged at AED 1.2M.

Al Majaz

Al Majaz has been the second most searched for option among buyers looking at apartments for sale in Sharjah. The waterfront area predictably attracts several local and international investors due to its proximity to Khalid Lagoon. The price-per-square-foot in Al Majaz has seen a moderate increase of 1.49% in 2021.

• The 1-bed flats in the area have become more affordable, going from AED 360k in 2020 to AED 334k in 2021. The price for 2-bed apartments for sale has also seen a slight uptick from AED 547k to AED 559k.
• Buyers interested in 3-bedroom flats for sale in Al Majaz have paid AED 792k on average for these units.

Aljada

The next most searched area for apartment sales in Sharjah in 2021 has been Aljada, due to benefits like direct connectivity to Sheikh Mohammed Bin Zayed Road (E311) and easy access to neighbouring towns. The average price-per-square-foot for apartment sales in Aljada has experienced an increase of 11.87%, going from AED 815.26 in 2020 to AED 912.09 in 2021.

• The average price of 1 and 2-bed apartments in the area remained relatively stable, at AED 487k and AED 827k respectively.
• However, the average cost of 3-bed apartments for sale in Aljada increased from AED 1.36M to AED 1.44M in 2021, mainly due to the delivery of several new, upscale units.

Other Areas

Aside from the usual favourites, prospective buyers in Sharjah have also shown an inclination for apartments in Al Nahda and Al Taawun — with the average price-per-square-foot in these areas remaining competitive at AED 403.65 and AED 404.94, respectively.

Highest Rental Yields for Apartments

The integrated Al Majaz waterfront community has offered the highest rental yield among the popular areas in the UAE’s cultural capital. Based on expected rental yields for apartment sales in Sharjah, the community has offered a projected rental yield of 6.33%.

Other areas like Al Taawun and Al Nahda have also offered healthy rental yields of 5.49% and 5.40% respectively.

Popular Areas to Rent Apartments

Al Nahda

Al Nahda has been the top choice for prospective tenants in terms of rental flats in Sharjah in 2021. An ideal location on the Dubai-Sharjah border has made this community a preferred choice for regular commuters between the two emirates. The area has shown a decline of up to 9.61% in the price of rental studios, 1-bed and 2-bed apartments.

• The average annual price of studios for rent in Al Nahda has decreased marginally from AED 17k in 2020 to AED 16k in 2021.
• The 1-bed rental flats in Al Nahda have averaged at AED 21k after a significant 9.61% decline, whereas the 2-bedroom apartments have averaged at AED 28k per annum, following a 8.32% decrease compared to 2020.

Al Majaz

Tenants in search of rental flats in Sharjah have also shown an inclination towards the family-friendly area of Al Majaz.

• Compared to 2020, the average price to rent studios in Al Majaz has dropped by 2.83%, to AED 16k.
• The cost to rent 1-bed apartments in Al Majaz has remained fairly stable at AED 24k, while the available 2-bed flats have recorded a negligible 0.82% decrease in yearly rental costs, to average at AED 33k.

Al Taawun

Al Taawun has ranked third in popularity for renting flats in Sharjah in 2021. The bustling area is popular with tenants owing to its picturesque location along Al Mamzar Lake and Khalid Lagoon. Adding to its appeal for families are the several supermarkets and schools in the area and the competitive pricing from landlords.

• The rent for studios in Al Taawun has remained unchanged at AED 17k. On the other hand, the average rent of 1-bed apartments has become more affordable at AED 23k, following a decline of 9.2%.
• Likewise, the average rent of 2-bed apartments has shown a 5.92% decrease to stand at AED 32k, down from AED 34k in 2020.

Other Areas

Aside from these areas, Muwaileh, Muwailih Commercial, Al Khan, Al Qasimia and Abu Shagara have also attracted tenants searching for apartments in Sharjah. Out of these areas, only the rental costs in Al Khan have experienced significant increases of up to 25.65%, largely driven by an increase in the availability of higher-priced, upscale rental units in Maryam Island.

Popular Areas to Buy and Rent Villas

Al Tai has been the most searched-for area for villa sales in Sharjah. The neighbourhood offers buyers a prime location between two major roadways, Sharjah Kalba Road (E102) and Emirates Road (E611).

Hoshi has also remained a desirable area for villa sales in 2021. Muwaileh has been the third-most desirable community for buyers interested in houses for sale in Sharjah. Its location on the emirate’s outskirts, close to Dubai, appeals to investors looking to capitalise on tenant demand driven by the proximity of the two emirates.

Other areas that have appealed to those interested in buying villas in Sharjah during 2021 include Al Rahmaniya, Al Noaf, Al Gharayen, Sharqan and Al Qadisiya.

Highest Rental Yields for Villas

Villa properties in Muwaileh offered the best projected rental yields among the emirate’s popular areas, with an impressive rental yield of 5.61%. The second-highest rental yield for villas for sale in Sharjah has been recorded in Al Ghafia, where the rental returns average at 5.26%. Villas in Al Noaf have also offered favourable rental yields of 4.77% to investors.

Most Popular Area for Villa Rentals

Al Tai has taken the lead in the most searched-for areas for villa rentals in Sharjah. Al Jazzat, a suburban area close to the Ajman-Sharjah border, has also attracted tenant interest for home rentals.

The well-connected suburb of Al Sabkha has been the third most searched-for area for tenants interested in villa rentals in Sharjah.

Other communities that saw strong demand for villas from tenants in 2021 include Barashi, Sharqan, Al Hazannah, Al Ghafia and Al Nasserya.

Featured Off-Plan Projects

Sharjah’s off-plan market has been a major draw for investors. The Masaar project in Al Suyoh has been the leading off-plan project in terms of popularity. Once completed, the community will offer a healthy lifestyle with a range of sporting facilities and amenities. Current off-plan developments in the area are expected to be handed over in 2022 and 2023.

The second-most popular off-plan project in Sharjah has been the Naseej District in Aljada, which lies close to Dubai. Construction of new projects in the district is expected to begin in the first half of 2022. Beyond a host of desirable amenities, the district promises a truly immersive, cultural atmosphere upon completion. Masaar and Aljada, home to Naseej District, are both developed by Arada.

On the edge of Sharjah, Muwaileh is home to another highly anticipated off-plan development in the emirate, Al Zahia. Several projects in Al Zahia are currently under construction, with completion expected in 2023. Other popular off-plan developments in the emirate include Maryam Island in Al Khan and Ajmal Makan in Sharjah Waterfront City.

Al Zahia is developed by Majid Al Futtaim with Sharjah Asset Management and Maryam Island is by Eagle Hills Sharjah, a Shurooq and Eagle Hills joint venture.

That concludes our Sharjah real estate market report for 2021. Those looking to track property trends across other emirates will find unrivalled statistical analysis in our Dubai Annual Property Sales Report for 2021.

Data sourcing & analysis disclaimer: All prices in this report are quoted in AED, and rents are stated on an annual basis. Asking prices by area and bed type, prices per sq. ft., and gross rental yields are based on average listing sale and rent prices in Sharjah on Bayut & dubizzle, as per the properties advertised by real estate agencies on behalf of their clients. Figures represent advertised prices only and do not reflect actual transaction prices unless stated. Areas and off-plan projects mentioned in the article are stated based on their popularity as per the user search activity on the platform. The analysis compares the last 12 months with the previous 12-month period, as of December 2021. Reported price metrics are calculated as averages after removing outliers to reduce the influence of extreme values and provide a more robust summary of advertised market prices.