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What's fuelling Sharjah's property boom

Volume of sales transactions reached more than 5.1m square feet

Published: Wed 12 Apr 2023, 6:13 PM

Updated: Wed 12 Apr 2023, 6:14 PM

By
Issac John

By providing unrestricted and absolute ownership of property to all nationalities, Sharjah has unlocked exciting opportunities for foreign property investors. - KT file

Sharjah’s landmark freehold initiative, rolled out a few months ago, has been triggering a property boom that saw the value of real estate transactions in the emirate increasing in tandem with a spurt in demand.

According to official data, 3,386 transactions valued at Dh1.7 billion were recorded across the emirate during March as the total volume of sales transactions reached more than 5.1 million square feet.

Realty analysts said the decision by Sharjah Executive Council (SEC) in November 2022 marked a key turning point for the property sector, sparking a freehold boom cycle.

The SEC decree allows all nationalities full ownership with no time restrictions in real estate projects. The move allows citizens of any country to own real estate of all kinds and uses in Sharjah.

The decision was a continuation of the executive structure for real estate registration in Sharjah and based on a law issued by His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah.

By providing unrestricted and absolute ownership of property to all nationalities, Sharjah has unlocked exciting opportunities for foreign property investors, leading to a renewed buoyancy in the real estate sector, property consultants said.

The Mortgage Movement Report issued by Sharjah Real Estate Registration Department (SRERD) revealed that the number of sale transactions at 595 represented17.6 per cent of the total transactions recorded in March, while the total mortgage transactions amounted to 319, or 9.4 per cent of the total transactions, with a total value of Dh838.6 million.

“The results underscore the important role that the real estate sector plays in the economy of the emirate and affirms Sharjah’s success over the past years in attracting local, Arab, and foreign investors as the emirate emerges a preferred destination due to its strategic location, social security, economic stability, solid infrastructure, and unique competitive advantages,” said the report.

During 2022, real estate transaction in Sharjah hit a remarkable Dh24 billion. Investments by the UAE nationals exceeded Dh16.2 billion, while the rest of the GCC nationals’ investments touched Dh1.4 billion. Investment by Arab citizens i amounted to Dh4.2 billion while citizens of other countries invested Dh2.2 billion, according to SRERD annual report.

As per the report, in 2022, there were as many as 7,267 sales transactions, a growth of 15.3 per cent compared to 2021, while the total number of mortgage transactions stood at 4,648, with a total value of approximately Dh10.1 billion.

According to the report, Muwailih commercial area topped the list of sales traffic areas by recording the highest number of transactions at 116. Mazairah and Al Khan areas came next on the list with 68 transactions each, followed by Al Rigaibah area with 38 transactions.

In terms of transaction value, Muwailih commercial area topped the list with a turnover of Dh140.8 million, followed by Al Sajaa Industrial area at Dh75.2 million, Al Khan area at Dh69.8 million, and Al Nahda area at Dh52.4 million.

Transactions executed in the central region were mostly focused in the Al Qasimia area while the top area in sale was in Blida region with a value of Dh6.4 million.

In Khorfakkan, the East area recorded the highest number of sale with three transactions, while Al Mudaifi area had the highest volume of transactions amounting to Dh3.7 million. Kalba and Al Khuwair industrial areas witnessed three sale transactions each, while Al Baraha was the top in terms of sales volume at Dh3 million, said the report.