Sharjah real estate beats covid downturn in 2020

Eudore R. Chand

SHARJAH 9 February 2021: The real estate sector in the Emirate of Sharjah recorded a 5.1% growth in total transactions during 2020, as compared to 2019. Figures show that 64,459 transactions worth Dh15.9 billion, were sealed last year.

The government adopted a series of stimulus that helped the real estate sector not only overcome the Covid-19 pandemic but prosper and grow, said Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Department.

Premium real estate projects launched in 2020 helped revive the real estate sector despite the pandemic. “Various commercial and industrial projects were launched,” he said, urging the real estate developers to study the realty market, and identify the needs of the investors to come up with appropriate, competitive and valuable real estate products for both parties.”

Reducing the fees on the sale value from 4% to 2% for non-GCC purchasers led to a significant increase of 32.5% in the number of the sales sealed last year by non-GCC investors, Al Shamsi revealed. “This major decision, along with the latest stimulus package, have boosted the economy of the Emirate, and attracted direct foreign investments to the real estate sector.”

Many of the department services were offered through electronic means; while an advance-appointment system was activated for the transactions that require personal attendance. Full attention was paid to sanitization and social distancing that the workflow went uninterrupted despite the Covid-19 pandemic.

Real Estate Transactions

The real estate dealings recorded across the Emirate of Sharjah last year included 12,248 ownership deeds, 4,644 initial sale transactions, 2,745 mortgage transactions, 39,444 ownership certificate transactions, 765 valuation transactions, and 4,613 other transactions.

Mortgage transactions numbered 2,745 worth Dh7.3 billion in Sharjah last year.

Some 3,773 sales transactions were recorded across the emirate in comparison to 3,328 sales transactions in 2019; constituting a growth of 13.4%. These covered a total area of 56 million square feet. Most of these were recorded in Sharjah city with 3,292 transactions that value Dh4.6 billion. The transactions covered 100 areas, led by Hoshi and Al Khan that constituted 38.5% of the total sales transactions sealed in Sharjah city.

The areas of Hoshi, Al Khan, Al Nahda, Al Tai, and Al Majaz-3 recorded highest sales, constituting 60.4% of the total sales transactions registered in Sharjah city. Most real estate projects were launched in Muwaileh, Hoshi, and Al Tai areas, whereas most residential apartments were recorded in Al Khan, Al Nahda and Al Majaz-3. However, Al Khan area recorded the highest value transaction worth Dh531 million.

The Central Region recorded 125 sales transactions, worth Dh108 million, across 40 areas. The highest sales transactions in the Central Region were at Al Malha and Al Taiba-2 areas with 35 transactions. These constituted 28% of the total sales transactions sealed in the Central Region. The remaining sales transactions, exactly 90 dealings, were concluded in 38 areas of the Central Region.

Meanwhile, Khor Fakkan city recorded 127 transactions, worth Dh88 million, in 15 areas. The highest sales transactions recorded in Khor Fakkan city were at Al Harrai Commercial and Al Midifi areas, with 41 transactions. These constituted 32.3% of the total sales transactions sealed in Khor Fakkan city. The remaining sales transactions in the city, exactly 86 dealings, were concluded in 13 areas of Khor Fakkan city.

Dibba Al Hisn recorded 36 sales transactions, worth Dh27 million. These were sealed at 5 areas of Dibba Al Hisn, led by Al Shamali District with 13 transactions. These constituted 36.1% of the sales transactions concluded in Dibba Al Hisn city.

Kalba city recorded 193 sales transactions, worth Dh92 million, in 28 areas. The highest sales transactions recorded in the city were at Al Saf and Kalba Industrial areas with 67 transactions. These constituted 34.7% of the total sales transactions concluded in Kalba city. The remaining sales transactions in the city, exactly 126 dealings, were sealed in 26 areas.

Usufruct Transactions: The Emirate of Sharjah recorded 105 usufruct transactions, worth Dh129 million, last year, 2020. These were led by Al Nahda area where 56 benefit sale transactions were sealed.

Residential properties in the lead

Residential properties were the highest traded in 2020; constituting 75.3% of the sales transactions. These included 1,006 residential vacant lands, followed by 901 residential apartments, and 712 residential built-up lands. The commercial properties ranked second with 11.1% of the total properties traded last year, while the industrial properties placed third with 10.4% of the total properties traded. finally, the agricultural properties recorded 3.2% of the properties traded in 2020 due to the ownership restrictions limited to the locals of the emirate of Sharjah.

Investors from 61 nationalities

Investors from 61 nationalities invested in the Emirate of Sharjah last year, 2020. These included 11,230 GCC and Emirati investors who traded 14,583 properties, worth Dh12.9 billion, and 2,189 foreign investors who traded 2,303 properties, worth Dh3 billion.

The Emirate of Sharjah witnesses a remarkable surge in the number of nationalities investing from across the globe.

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