Sharjah’s real estate sector recorded a phenomenal 165 per cent jump in investments, driven by a significant surge in non-Arab foreign investors in 2023, data released on Wednesday by the Sharjah Real Estate Registration Department shows.
The upswing in investments from 103 nationalities was after a strategic government decision allowing non-citizens and Gulf nationals full ownership rights, the Sharjah Real Estate Registration Department said in a report.
The emirate also set a new record with Dh27.1 billion cash trading in 2023, the highest since 2017, recording a 13.1 per cent surge in cash trading volume in 2023.
“The diversity of investing nationalities expanded to an impressive 103, marking a remarkable 21.2 per cent growth compared to 2022. Non-Arab foreign investors experienced an astounding 165 per cent increase in trading volume and a substantial 131.7 per cent rise in the number of properties traded, while mortgage transactions reached a notable value of Dh7.5 billion,” the department said.
The report highlights a significant 7.5 per cent increase in property deed transactions, totalling 24,842, while sales transactions surged to 8,731 across 232 diverse areas, encompassing over 89 million square feet. Utility sale transactions reached 691, amounting to Dh 947.2 million. Initial sales contract transactions exhibited remarkable growth, with a 38.4 per cent increase over 2022, totaling 6,442 and reaching a value of Dh7.5 billion.
Abdulaziz Ahmed Al Shamsi, director-general of Sharjah Real Estate Registration Department, said the robust growth in 2023 was driven by the real estate sector’s strength and versatility.
He said the emirate’s real estate sector now attracts capitalists, businessmen, and elite investors in pursuit of the perfect property, offering substantial returns in both short and long-term scenarios. “Additionally, it caters to the diverse needs of those seeking properties that enhance a dignified and integrated lifestyle, aligning seamlessly with economic well-being aspirations.”
Al Shamsi highlighted the sector’s robust legislative framework and strategic distribution of trading areas across varied locations, citing these factors as integral components contributing to the emirate’s competitive economic prowess.
“The results, based on precise data, indicate sustained expansion in the real estate market in terms of size, transactions, area, and investor engagement. This momentum is further propelled by the launch of significant and diverse real estate and urban projects across commercial, industrial, and residential sectors,” he said.
The Sharjah city dominates real estate trades, claiming 90 per cent of transactions. Specifically, 7,859 transactions took place in the city, while the remaining 10 per cent were distributed among the central region (434), Kalba (224), Khor Fakkan (193), and Dibba Al-Hisn (21) transactions.
At the forefront of real estate activity is the Muwaileh Commercial area, boasting 1,586 transactions and a trading volume of Dh2.1 billion. Renowned for its real estate development projects, the area’s transactions predominantly focus on residential properties and lands, with a significant emphasis on spacious properties.
In 2023, the emirate saw the launch of five new real estate projects comprising four compounds and one tower. The total area of these projects was 157,493 square meters, with 14,713 properties traded in real estate development projects throughout the year.
In response to the surging demand for real estate units in Sharjah, the Committee for Approving Real Estate Development Projects in Sharjah undertook the approval of 17 diverse real estate projects last year.
The total number of properties traded by investors from 103 nationalities surged by 12.4 per cent from 27,780 in 2022 to an impressive 31,229 properties in the past year.
In terms of trading volume by nationality, the Emiratis played a pivotal role, contributing significantly to the total cash circulation with investments reaching approximately Dh15.3 billion, representing 56.4 per cent of the overall sum. Other Gulf nationals followed suit with investments totaling Dh1.6 billion, accounting for 6.0 per cent of the total, while Arab citizens increased their investments to Dh4.3 billion, equivalent to 15.9 per cent. Investments by citizens from other countries reached a record high, amounting to about Dh5.9 billion, constituting 21.7 per cent of the total investment value.
In terms of the number of properties traded, Emirati investors led the way with 21,876 properties. Investors from India followed, trading 1,469 properties with a total volume of Dh2.8 billion. Syrian investors traded 1,299 properties, valued at Dh1.1 billion. This was followed by investors from Iraq with 609 properties, valued at Dh640.1 million, Jordan with 559 properties, valued at Dh647.4 million, Egypt with 555 properties, valued at Dh536.9 million, and Pakistan with 549 properties, valued at Dh 842.2 million.