SHARJAH 16 November 2020: The real estate sector in Sharjah has recorded a 10 percent growth in transactions in the third quarter of 2020 as compared to the same period last year. Figures show that up to 14,854 real estate transactions, worth Dh4.6 billion, were sealed over Q3 this year.
Sales transactions covered 14.6 million square feet, as per the latest quarterly report by the Sharjah Real Estate Registration Department (SRERD), said official news agency Wam.
Abdul Aziz Ahmed Al Shamsi, SRERD Director General, said the reported growth is mainly attributed to the series of stimulus decisions recently taken by the Government of Sharjah to contain the effects of the Covid-19 pandemic.
“The support given to all government and private entities, business and individual sectors, included an extended three-month exemption of the annual license renewal fees for economic establishments, a discount of 50 percent on delayed fines and violations for economic establishments, and a discount of 50 percent on the license fees for industrial establishments to help boost the contribution of the industrial sector to the gross domestic product.”
A further discount was also granted on the insurance and supply fees of electricity, water and natural gas services for the owners of economic, commercial and industrial establishments who were permitted to pay due fees in instalments over two years to reduce their financial burdens, Al Shamsi elaborated.
Registration Fee Cut
Reducing the fees on the sale value from 4 percent to 2 percent for non-GCC purchasers until March 31, 2020 was also a major decision, he underlined. “This new decision, along with the latest stimulus package, have led to a rapid recovery of the real estate sector here that it continues to play a pivotal role in the progress and prosperity of the emirate.”
Completing previous projects and launching new ones, like the development projects recently accomplished in the Eastern Region sent an important message to the investors about the stability of the economic situation in the emirate despite the pandemic, Al Shamsi said. “The emirate was not affected by the global crisis thanks to the insightful vision of the prudent leadership and its passion to keep work as per set plans.”
Sharjah City: Main branch accounts for 95.7 percent of total investments value Al Shamsi said the main branch accounted for 95.7 percent of the total real estate investments value recorded in the third quarter of 2020. “These are compared to 4.3 percent for other branches: 1.4 percent for the Central Region branch, 1.6 percent for Khor Fakkan and Dibba Al Hisn branch, and 1.3 percent for Kalba branch.”
The property statement transactions topped by 8,743 transactions, followed by 3,539 property title transactions, 1,675 initial sale transactions, 676 mortgage transactions, and 221 valuation transactions.
Up to 676 mortgage transactions, worth Dh1.9 billion, were recorded in Sharjah in the third quarter of the year.
Up to 1,090 sales transactions were registered across the emirate in the third quarter of 2020. Most of these were conducted in Sharjah city with 928 transactions valued at Dh1.1 billion. These covered 75 areas, led by Al Khan area with 159 transactions, while Al Tai area recorded 120 sales transactions valued at Dh144 million.
Central Region: It recorded 44 sales transactions, worth Dh36.4 million, across 19 areas. The highest sales value in the Central Region was at Al Blida area where 3 sales transactions, worth Dh 9.2 million, were sealed.
Up to 38 transactions, worth Dh 24.1 million, were recorded at 11 areas in Khor Fakkan. The highest value of sales in the Khor Fakkan was Dh9.8 million that was recorded at Al Midifi area where 11 sales transactions were concluded.
These are compared to 18 sales transactions sealed at 5 areas of Dibba Al Hisn city against Dh12.6 million. The highest sales value there was at the Western District which recorded 4 transactions valued at Dh4.3 million.
The Kalba city recorded 62 sales transactions, worth Dh35 million, at 21 areas, led by 9 transactions, worth Dh8.2 million, at Al Saf area.
Benefit sale transactions: The emirate of Sharjah recorded 27 benefit sale transactions in the third quarter of this year, worth Dh41.2 million. These were led by ‘Al Saja Industrial area’ where 7 benefit sale transactions were sealed against Dh15 million.
Residential properties on the top Residential properties topped the list in the third quarter of 2020 with 813 sale transactions. The industrial transactions came second with 120 sales transactions, followed by 108 commercial transactions, and 49 agricultural sale transactions.
The residential properties, topping the list, constituted 74.6 percent of the sales transactions sealed in the third quarter of 2020. These are compared to 11 percent for the industrial sales transactions which came second, 9.9 percent for the commercial sales transactions which ranked third, and finally 4.5 percent for the agricultural sales transactions.
In total, up to 1,090 sale transactions of all types of properties were recorded or a rise of 68.7 percent compared to the same period last year.
In terms of properties kind, residential apartments topped the list with 307 apartments, followed by 236 residential built-up lands, 193 residential vacant lands, and 76 industrial vacant lands.
Investors from 47 nationalities Investors from 47 nationalities were involved in the reported real estate transactions in the emirate of Sharjah in the third quarter of the year 2020. These included 3,630 GCC investors, including Emirati nationals, who traded 4,483 properties, worth Dh3.5 billion, and 691 foreign investors who traded 731 properties, worth Dh1.1 billion.