Sharjah over Dubai!

With unbearable high rents, people moving from Dubai to Sharjah

Dubai is a second home for many foreigners, including Indians. The allure of Dubai is unmatched globally, attracting skilled professionals with career opportunities, high salaries, good quality of life, and a warm climate. Consequently, real estate prices in this desert nation are skyrocketing, making it necessary to spend a significant amount to buy a house. The rental situation in Dubai is equally challenging, with studio apartments costing between 9,000 to 10,000 dirhams. As rents continue to soar, many are looking for alternatives. For such individuals, Sharjah, located to the north of Dubai, has become a boon.

With the rising rental prices in Dubai, many people are now considering Sharjah. In the past two years, since the approval of laws allowing foreigners to purchase property in certain areas of Sharjah, numerous investors have started focusing on that region. Developers are already in the process of constructing 10,000 homes. According to Pritush Guerra, head of research and advisory at Cushman & Wakefield, there has been a noticeable shift toward Sharjah due to its lower rents and cost of living. The favourable tax regime and convenient time zone have led many bankers, lawyers, and other white-collar workers to begin moving to the Emirates recently, increasing the demand for properties.

Post-pandemic, property values in the Emirates have seen a substantial rise. Rental prices for single-family homes and villas have surged by 86%. Compared to Dubai, Sharjah has long provided affordable housing. It has transformed into an attractive metropolis, complete with luxury hotels, manicured parks, and infinity pools. However, most of the housing in Sharjah is still found in older towers, with only a few amenities comparable to those offered in Dubai.

Amid these developments, Sharjah is also evolving. Arada Developments, linked to the son of Saudi Arabia’s prince Alwaleed Bin Talal and a member of the ruling family of Sharjah, is building a $9.5 billion project named Aljada. This project will feature nearly 25,000 homes, restaurants, shops, and sports facilities, including the largest skate park. Sharjah, which was settled nearly 7,000 years ago, has been ruled by the Al Qasimi dynasty since 1600. The current ruler has been in power for over half a century. Sharjah’s development took off in the 1970s, propelling it to new heights.

In the Arada project in Sharjah, Indian buyers account for 29% of the purchasers, a significant increase from just 8.7% a few years ago. Buyers from Germany, Canada, and the UK make up around 10% of the total. Aljada, located just 20 minutes from Dubai Airport, had initial selling prices for Arada homes at 650 dirhams ($177) per square foot, which have now risen to 140 dirhams. Even so, these prices remain over 40% lower than comparable areas in Dubai.

The influx of people relocating from Dubai has led to a rise in prices in Sharjah, but the price disparity between the two markets remains significant. For instance, a single-bedroom apartment in Sharjah rents for about 60,000 dirhams annually, while that amount wouldn’t even secure a studio in Dubai. To protect new renters, Sharjah has implemented a regulation that prevents rental increases for the first three years, allowing for hikes only once every two years thereafter.

Meanwhile, other developers are also exploring opportunities in the region. Eagle Hills, based in Abu Dhabi, is constructing a luxury residential and tourist destination in Sharjah’s Maryam Island, with an investment of 4.5 billion dirhams.