Sharjah remains a buyer’s and renter’s market with properties at an attractive price point, according to Bayut’s H2 market report. Properties across the most popular areas in the emirate have experienced slight decreases in prices.
● Prices for apartments have decreased on average across the emirate. The most notable price changes are the 10.2% decline in 1-bedroom apartments in Al Majaz and Al Nahda , where prices have fallen from AED 490k in H1 to AED 440k in H2.
● Price changes that stand out for apartment rentals are the 13% drop in prices for studios in Al Majaz , now standing at AED 20k from AED 23k in H1. This is followed by a smaller price decline of 11.5% for 1-beds in Abu Shagara from AED 26k to AED 23k in H2. Other popular areas in Sharjah have seen modest decreases up to 10% for apartment rentals.
Once again, Al Majaz takes the top spot for apartment sales in the emirate, where prices for 1-bedroom units average at AED 440k now, while 2-bedroom units remain steady at AED 735k. Similarly, studios in Al Nahda now stand at AED 270k after a 10% decline in prices from H1. On the other hand, prices for 1-bedroom units in Sharjah Waterfront City have climbed to AED 540k from AED 520 in H1. With the exception of Sharjah Waterfront City, the most popular areas in Sharjah experienced moderate declines of 2%-10% in sale prices for apartments.
Since H1, Al Nahda has made its way to the top for apartment rentals in Sharjah. Rentals for apartments in the area remain nearly the same with only slight declines. The biggest change in prices is for 2-bedroom units, where average rents have fallen to AED 39k from AED 42k in H1. On the other hand, studios and 1-bedroom units now stand at AED 25k and AED 30k with smaller declines. Other popular areas like Al Majaz and Al Qasimia have seen prices for 1-bedroom units decrease around the 10% mark. Meanwhile, the most stable prices are for 2-bedroom apartments in Muwaileh (AED 40k) and Abu Shagara (AED 33.5k), experiencing no changes at all.
In H2 2018, Barashi beat all other areas as the most popular for villas sales, bringing in 12.6% of the searches on Bayut.com. Hoshi comes in second place, accounting for 11.6% of searches. Other areas that received the most interest in Sharjah are Sharqan (11.2%), Al Falaj (9.6%) and Al Ramaqiya (9%). These are followed by Al Ghafia , Al Yash , Sharjah Waterfront City, Al Ramla and Al Sabka.
Al Sabka takes the crown for villa rentals in Sharjah, attracting the most interest from renters, earning 18.2% of searches from Bayut users. Sharqan ranks as the second-most popular area, bringing in 13.3% of overall interest. Areas such as Barashi (11.1%), Al Azra (10.6%) and Al Ghafia (8.5%) are also popular with potential tenants in the city. Al Hazzanah , Al Jazzat , Al Shahba , Al Mirgab and Al Qasidiya are also searched often by users on Bayut.com.
Most popular sub-communities
In Al Majaz , the sub-community of Al Majaz 2 is the clear favourite for buying apartments, receiving 48.5% of overall interest in the area from investors. Similarly, Al Nada Tower is responsible for 45.3% of searches in the Al Nahda area. Finally, Al Taawun Street in the area of Al Taawun has raked in more than half the searches (54%) for apartment sales from Bayut users.
For renting apartments, Abdulla Shaiba Building is the prime choice for renters looking for homes in Al Nahda , holding 31.6% of interest shown in the area. Al Nud has generated most of the searches in Al Qasimia at 94.4%. Like buyers, renters in Sharjah have also turned to Al Taawun Street in Al Taawun and Al Majaz 2 in Al Majaz as the first choice for renting apartments.
Sharjah’s affordable prices will no doubt continue to attract both investors and renters in search of pocket-friendly living. The declining prices and game-changing announcements of the 5-year retirement visa and laws that removed the need for residency visa to purchase property in the emirate, should see interest in property sales pick up next year.
Forecast for 2019
Haider Ali Khan, CEO of Bayut, said, “Similar to H1 and Q3, the moderate decline in property prices for Sharjah make it an opportune time for investors to broaden their property portfolio. Meanwhile, off-plan projects to be delivered in coming years and new property laws are paving the way for increased interest in property sales as well, reflected in the step-up of prices in developments like Sharjah Waterfront City. Sharjah also continues to rank as one of the most affordable emirates to live in when it comes to rentals, with prices decreasing across the board.”
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Sharjah.
Photo Credit: Sharjah – Nigh time photo. Author: marviikad from Al Khobar, Saudi Arabia.