Sharjah realty transactions reach Dhs14.7 billion in first half

Business Bureau, Gulf Today

Real estate transactions have recorded Dhs14.7 billion in the Emirate of Sharjah in the first half of this year (2019), as per the latest report revealed by the Sharjah Real Estate Registration Directorate (SRERD).

Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Directorate in Sharjah, said the Emirate recorded 27,588 total transactions that covered 24 million feet in area.

“Most of the real estate dealings recorded in the Emirate of Sharjah over first six months of the year were in May with dealings worth over Dhs6 billion.”

The real estate sector in the Emirate has become a main reason of attraction for local, Arab and foreign investors, he added.

“The advanced infrastructure, proactive legislations, economic stability, and strategic location are further elements of attraction that promote the image of Sharjah as a leading global investment destination in the real estate sector.”

Sharjah City on the top

According to the Half-1 report, up to 1,893 “Sales” transactions and 1,588 “Initial Sale Contracts” transactions were recorded in the first six months of the year.

Most of the real estate transactions were recorded in Sharjah city with 1,704 “Sales” transactions in Sharjah city alone in the first half of the year 2019.

The “Sales” transactions in Sharjah city covered 91 areas, led by Muwaileh Commercial Area, followed by Al Khan, and Al Nahda which ranked third. However, the Muwaileh Commercial Area ranked first in the city of Sharjah in terms of the amount of dealings.

Residential properties on the top

Residential properties ranked first in terms of sales transactions, constituting 69.7 per cent of the total transactions recorded. These were followed by commercial properties (17.8 per cent), industrial properties (10 per cent), and agricultural properties (2.5 per cent).

Investors from 37 nationalities

Investors from 37 nationalities worldwide have invested in the real estate sector of the emirate of Sharjah in the first six months of 2019.

“GCC nationals’ real estate investments in the Emirate of Sharjah exceeded Dhs11.8 billion, while the real estate investments of other nationalities were valued at over Dhs2.8 billion.”

Earlier the report came that Sharjah’s real estate sector this year will continue to enjoy the steady growth and momentum that it recorded in 2018, driven by a growing interest from investors across the world in its mixed-use developments and attractive payment plans.

Real estate developers spoke about how the spillover effect from Dubai’s real estate market, combined with recent laws that allow for foreign ownership, have all created a market in Sharjah that is looking increasingly attractive for both end-users and investors.

The value of real estate deals in the emirate totalled Dhs22.5 billion last year; and according to the Sharjah Real Estate Registration Directorate, investors from 48 nationalities worldwide were involved in the transactions. GCC nationals topped the list with investments worth over Dhs20 billion.

Abdallah F Al Shakra, chairman of Ajmal Makan - Sharjah Waterfront City, noted that interest in Sharjah’s real estate sector had grown substantially since 2014, when the Sharjah Government opened up the emirate to foreign investment. The momentum continued last year when it was announced that non-Arabs would no longer need to have a residency visa to purchase property.

“The new laws and regulations, especially regarding freehold, have been driving interest in projects across the emirate,” he said. “The market has matured and investors from the European, Chinese, and Subcontinent markets are taking a keen interest.”

Ajmal Makan - Sharjah Waterfront City is one of the largest freehold waterfront developments in Sharjah. Once completed, the development will include a collection of eight islands that will be visible from outer space. The Dhs25 billion mixed-use waterfront community is set to be home to 60,000 people, living in 1,500 villas and townhouses, and 95 high-rise residential and commercial towers. Phase one of the project covers Sun Island, a development includes 321 waterfront villas; while Phase two of the project covers Blue Bay Walk, a development comprising of six residential buildings.

Dr. Faisal Ali Mousa, chairman of FAM Holding, described the real estate sector in Sharjah as being stable. He revealed that FAM Holding had not changed the prices of their units across their developments since 2014, and that the payment plans had also remained the same. This, he revealed, was because of the fact that developers had not flooded the market with a huge number of units, as is usually the case in Dubai.