SHARJAH (The Thursday Times) — As Dubai’s rental prices continue to soar, an unexpected alternative is emerging just a short drive away—Sharjah, a 7,000-year-old city that is positioning itself as a haven for buyers and renters who are feeling the financial pinch. Located north of Dubai, Sharjah has long been known for its affordability, but now it’s attracting attention thanks to a new law allowing foreign ownership of property in designated areas. This move is reshaping the real estate market and offering an attractive alternative to Dubai’s ever-rising property prices.
Affordable living in Sharjah
In comparison to Dubai, where home values have been increasing for 16 consecutive quarters and rents for single-family homes have surged by 86% since the pandemic, Sharjah presents a much more affordable option. Property prices in Sharjah are about 40% lower than in Dubai, making it an appealing option for those seeking to escape Dubai’s high cost of living while still staying within the UAE.
Sharjah’s new law, which allows foreigners to buy property in select areas, is starting to pay off. Developers are responding to this demand by building tens of thousands of homes, and buyers—especially expats—are flocking to the market. These new developments offer modern amenities, marking a shift away from the older, more basic housing stock that has traditionally defined Sharjah’s real estate market.
New developments, projects in Sharjah
One of the most high-profile projects currently underway in Sharjah is Aljada, a $9.5 billion development by Arada Developments. This massive project will eventually include 25,000 homes, retail spaces, restaurants, sporting facilities, and even one of the largest skate parks in the region. Aljada is expected to be completed by the end of the decade, and roughly one-third of the construction is already finished.
Another major project is Masaar, a $2.5 billion development also by Arada, which is set to feature around 3,000 homes, a 13-kilometre cycling and jogging track, and the planting of 50,000 trees to create a more eco-friendly and pedestrian-friendly environment. These projects signal that Sharjah is not only catching up to Dubai in terms of property offerings but is also prioritising quality of life.
Other developers are jumping on the opportunity as well. Eagle Hills, an Abu Dhabi-based company, is working on a 4.5 billion dirham luxury project on Maryam Island, and SEE Holding is building over 1,200 eco-friendly homes across Sharjah. The influx of development is being met with strong demand, particularly from expats seeking more affordable options than Dubai.
FDI in Sharjah
The shift towards Sharjah has attracted significant foreign interest. Indian buyers currently make up 29% of home sales in Arada’s developments, a sharp increase from just 8.7% before the law changed. Expats from countries like Germany, Canada, and the UK are also investing in Sharjah properties, drawn by the lower prices and promising growth. This influx of international buyers is boosting property values, though they remain significantly lower than those in Dubai.
Despite rising prices, Sharjah still offers excellent value compared to its neighbour. For instance, a high-end one-bedroom apartment in Sharjah might cost 60,000 dirhams annually, whereas that same budget would barely cover a studio apartment in Dubai. The affordability is further supported by government policies like a three-year rent freeze for new tenants, with rent increases permitted only once every two years thereafter.
A cultural and historical appeal
Sharjah isn’t just drawing in residents with affordability; the emirate is also rich in history and culture. Known for its dedication to preserving local heritage, Sharjah is home to The Heart of Sharjah project, which is restoring the old town’s souks, narrow alleys, and historic buildings. This cultural revival is setting Sharjah apart from its glitzy, ultra-modern neighbours like Dubai and Abu Dhabi.
Sharjah’s historical roots stretch back over 7,000 years, and it has been ruled by the Al Qasimi dynasty since the 1600s. The emirate was historically one of the wealthiest in the UAE, thanks to its ports and the pearl-fishing industry. Today, Sharjah’s leadership is focused on blending development with cultural preservation, making it an attractive destination for those who appreciate the Middle Eastern heritage.
A family-friendly option?
For families, Sharjah is emerging as a practical alternative to Dubai. Its quieter, more conservative environment, lower living costs, and growing selection of family-oriented housing make it an appealing choice. Developers are building communities designed for families, with spacious homes, parks, and schools. This makes Sharjah particularly attractive to expats who want to raise their children in a more relaxed, less commercialised setting.
However, Sharjah’s rise as a real estate hotspot comes with some challenges. Public transportation is still limited, and the city’s traffic can be a significant drawback for commuters who work in Dubai. The process of buying property is also not as streamlined as it is in Dubai, though improvements are underway as developers push for more transparent and efficient systems.
While Sharjah is more conservative than other emirates—alcohol is banned, and certain types of entertainment, like hookah lounges, are restricted—it remains a vibrant and livable city for expats who enjoy the Middle Eastern lifestyle.
Too big to be ignored
As Dubai’s property market becomes increasingly inaccessible to many due to high prices, Sharjah is emerging as a viable and attractive alternative. With its affordable housing, cultural heritage, and large-scale developments, Sharjah is rapidly becoming a real estate haven for both investors and residents. Although challenges remain, the city is poised for growth, and its appeal to families, expats, and investors alike continues to strengthen its position in the UAE’s real estate market.
For those seeking a balance between affordability and quality of life, Sharjah offers a compelling option just a short drive from the hustle and bustle of Dubai. The city’s ongoing transformation is one to watch as it steps into the spotlight of the UAE’s ever-evolving landscape.
