Rents in Sharjah are expected to remain elevated over the next two years. Projections indicate a 5 to 10 percent increase compared to other emirates. This trend is primarily driven by an influx of new residents relocating to the emirate.
The Sharjah Census 2022 revealed a population growth from 1.4 million in 2015 to 1.8 million. This increase highlights the emirate’s rising appeal. Consequently, the population surge has significantly influenced the increase in rental prices.
Moreover, the post-pandemic recovery in 2020, following the economic impact of Covid-19, triggered a heightened demand for housing. Additionally, the introduction of foreign freeholder rights in late 2022 has invigorated the local real estate market. Prominent developers such as Arada, Alef Group, and Shurooq have launched numerous residential and mixed-use projects to meet the growing demand.
Among the northern emirates, Sharjah distinguishes itself with substantial new real estate supply and project launches. By the third quarter of 2024, rental rates range from Dh12,000 for studio apartments to Dh100,000 for three-bedroom units. These figures represent a quarterly increase of three percent and an annual rise of 16 to 19 percent. This is the reason than rents in Sharjah will remain high.
The heightened demand from both investors and end-users has been a significant factor in driving rental price hikes. As a result, Sharjah’s attractiveness for residential purposes continues to support its overall economic growth. This creates a positive feedback loop in the emirate’s economic ecosystem.
