SHARJAH 23 October 2019: Savills, a leading real estate services provider, revealed its latest Sharjah Market Spotlight that shows that Sharjah’s growing population is driving demand for residential units across Emerging Sharjah.
This demand has spiked remarkably with enquiry levels across Emerging Sharjah increasing by 50% from Q1 to Q2 2019 and is expected to continue for the remainder of 2019.
“Sharjah’s mature social infrastructure, vibrant retail environment and a relatively affordable cost of living has set it on the map as a preferred residential destination across the Emirate. With limited space and historically high land prices, developers of new residential projects have looked to the outskirts of the city where congestion is lower and development land is not in short supply”, said Suzanne Eveleigh, Head of Sharjah – Savills.
For instance, recent projects with excellent connectivity to other Emirates such as Al Zahia, Al Jada, and Nasma Residences offer good quality development at relatively affordable rates. Therefore, attracting more tenants and causing steady movement of residents to these locations, which is in turn promoting the growth of businesses, retail and associated facilities in the areas.
Eveleigh said: “The market in Sharjah is quite price sensitive and most of the city’s tenants consider the Emirate because of its affordable rent prices, thus tenants will continue hunting for the best value. Relocating to Emerging Sharjah can ease commuting times significantly, offer lower congestion and easier access to major road networks. There is a notable growth in the number of mixed-used developments which is expected to attract business and create a live, work and play opportunities in these newer communities.”
In terms of the most attractive micro-markets, University City is leading with 36% of the total demand followed by Al Khan with 24%.
Tenants living in Central Sharjah tend to priorities affordability, unit size and payment flexibility, while tenants in Emerging Sharjah look for amenities & facilities, security and community lifestyle. High-end residential buildings in Al Zahia gated community, Garden apartments charge higher rental rates compared to Central Sharjah high-end buildings, unlike Muwailah and Muwailah Commercial that have more affordable prices.
According to Shane Breen, Director of Commercial Valuations and Consultancy Services at Savills-Sharjah, “Gated communities in Emerging Sharjah and ready-to-move-in projects such as Al Zahia is the first example of how future master-planned communities will be received in the market. Average annual rents for studio and 1-bedroom apartments in Al Zahia are currently command a 5-10% premium on comparable properties in Sharjah City, within the high-end apartment segment.”
Other Emerging Sharjah communities around University City, have seen a spike in demand from professionals working in the surrounding areas. Established commercial areas such as SAIF Zone and Sharjah Airport have experienced significant growth over the past 5 years which helped to create demand for residential properties nearby.
The growth of the Sharjah School District has also helped generating significant demand from families relocating to be closer to their children’s schools. The growth in the number of university students as well as the development of new communities within Emerging Sharjah has resulted in rise in the number of students choosing to source their own accommodation off campus. For instance, high-end studio and 1-bedroom apartments in particular across Muwailah Commercial have seen the number of student tenants increasing over the past few years. Affordable rents, modern amenities and supporting facilitates when compared to on campus student accommodation, are the primary drivers for this trend.