The real estate sector in Sharjah expects a boom in 2017 by launching Al Jada and Al Mamsha projects along with three others. These 30 billion Dirhams worth of projects have contributed to the state’s reputation in the real estate sectors.
In Sharjah, Al Jada is the largest project of its kind having total area of 24 million square feet and costs 24 billion dirhams. This project has all the health, education and development facilities. The construction will start in the first quarter of 2018, and 2025 is the expected year of its completion.
Did you know that the number of residential properties sold reached 1289, up 23%? Astoundingly, the sales of commercial properties totaled 846, an increase of 109%.
So let’s dig in check out some promising signs of the Sharjah Real Estate Sector:
High supply Influencing rental returns
Ever since the stocks increased, it pushed down the broader rental costs in the first half of 2017. However, the luxury sector is performing really well.
The UAE Property Report 2017 confirmed that returns on rental properties in the villa segment rose 11.7%. It’s all because of the growing appetite for high-end residences. On the other hand, apartment’s rents fell by 7% in the first 6 months of 2017.
Lower Cost of living
The property and rental industry is not performing well in Dubai. However, Sharjah still has an edge over its neighbor in terms of affordability. The cheaper living cost helps the emirate maintain competitiveness in the residential market. Things turn quite favorable for locals and expatriates in the middle-income bracket.
In mid-year affordability report, Sharjah is ranked 302nd out of 511 cities for cost of living. It’s surprisingly down from 273 in the researcher’s last survey, carried out in January. Dubai also slipped from 190th spot to 206th, which widened the gap between two emirates over the first six months.
Giants from one of the best real estate companies in Sharjah said that buyers can secure more space for their money. “Real estate in Sharjah remains a predominantly price and size-driven market. The new housing projects in Dubai may provide affordable accommodation to compete with Sharjah. They may offer sufficient space for price-conscious families. But properties in Sharjah will remain attractive due to the space offered,” he told OBG.
New Upcoming Projects
Since Sharjah real estate is performing well, the developers have announced a new round of projects.
In late September, Al Thuriah Properties announced projects to start work on a new high-rise building. It would be considered as part of its Sahara Tower 6 development after achieving 80% sales while the project was only 50% complete.
Construction on the second building is expected finish in late 2019 that would have a total of 376 apartments to existing supply.
Offering residence for 70,000 people, Arada unveiled a $6.5bn project. It will include commercial, entertainment, retail and community facilities. The venture is considered as the Sharjah’s largest real estate development.
Aljada is planning to electrify the real estate industry in the first quarter of 2018. Cover an area of 2.2 sq. km, it’s located near Sharjah’s University City & the emirate’s international airport. Expected completion year of this project is 2025.