Is Sharjah Still Affordable? Property Price Trends in 2025

Uncategorized2 weeks ago

Sharjah has long been known as a budget‑friendly alternative to Dubai. But with fast‑rising demand, recently launched luxury projects, and growing infrastructure investments, many are asking: is Sharjah still affordable in 2025? Here’s the detailed, easy‑to‑understand analysis.

1. Signs of Price Acceleration

Strong investor activity

January 2025 saw AED 7 billion worth of transactions—up 80% from AED 3.9 billion in January 2024—with more than 11,000 deals completed.
The Emirates recorded a record AED 40 billion in real estate deals during 2024, marking a 48% year‑on‑year jump.

Rising rental yields

Sharjah now has the highest average rental yield in the UAE at around 4.26%, up to 6.7% in some areas.
Lease renewal rates have surged 18–25%, notably in communities like Aljada, Masaar, and Tilal City.

Growing sales prices

Apartment prices increased between 1% and 10% across most areas in 2024, with Al Majaz seeing an exceptional 51% rise.
Savills reports moderate price growth, with expectations for house prices to climb 23.4% over five years.

2. Forecasts for 2025

Strong projected growth
TopLuxuryProperty projects that by 2025:

Studio sale prices will rise from AED 350,000 to AED 450,000.
Two‑bedroom apartments could go from AED 900,000 to AED 1.1 million.
Villas may appreciate from AED 5 million to AED 6.5 million
Office space values are expected to increase from AED 1,800 to AED 2,500 per square foot.

These forecasts align with Bayut’s findings that villa and apartment prices climbed as much as 57% in some communities.

3. What’s Driving the Price Rise?

Dubai spillover
Residents priced out of Dubai are moving to Sharjah. This migration is pushing both rents and sales up, especially near transport and infrastructure nodes.

Population growth
Sharjah’s population, nearing 1.8 million, continues to grow—expanding rental and ownership demand. Q1 2025 saw over 1,400 mortgages totaling AED 2.4 billion.

Government stimulus
The government allocated AED 13.5 billion to support affordable housing and infrastructure, driving investment in mid‑range projects like Nasma Residences and Hayyan. Road expansion, electric buses, and metro‑linked projects have also made new areas more valuable.

Foreign investment surge
Freehold reforms and simplified regulations have led to an 84.6% increase in foreign transactions in 2024. Investments from Asia rose, climbing from AED 5.9 billion in 2023 to AED 8.3 billion in 2024.

4. How Affordable Is Sharjah Today?

Still more affordable than Dubai
Despite rising prices, Sharjah remains 20–30% cheaper per square foot than Dubai. For example, city‑center apartments in Sharjah average AED 13,250/m² versus AED 17,334/m² in Dubai.

Rental pressure increasing
While affordability endures for buyers, renters face steep increases. Lease renewals in Al Nahda spiked 45%, with yearly rents rising from AED 27,000 to AED 39,000 in some units. New regulations now impose a three‑year rent freeze after contracts sign, followed by unrestricted market increases.

Mid‑range and off‑plan opportunities
The most affordable mid‑range housing remains accessible. Planned communities—like Aljada, Tilal City, and Masaar—offer entry‑point prices that are still attractive, particularly under developer payment schemes.

5. Risks to Watch

Interest‑rate sensitivity: Rising mortgage costs could slow buyer activity.
Oversupply in luxury: Too much luxury stock risks creating glut in premium segments.
Policy changes: Future adjustments to freehold rules or taxes may alter buyer sentiment.

6. Summary: Is Sharjah Still Affordable?

Yes, but with caveats.
Sharjah remains far more affordable than Dubai and offers strong rental yields. But affordability is shifting:

Segment	Status in 2025
Entry‑level buyers	Still finding value in mid-range apartments and townhouses
Renters	Facing sharp increases post–rent freeze
Luxury segment	Growing prices reducing luxury affordability

7. Outlook for U.S. Investors

For those in the U.S. seeking global real estate diversification:

Buyer-friendly yet competitive: Mid-range and sustainable projects still provide value.
Strong rental returns: Yields of 5–7% make rental investment attractive—provided rent increases are managed.
Growth areas: Aljada, Masaar, Sustainable City, and Al Majaz are among the top communities where growth and price appreciation are expected.

Final Take

Sharjah in 2025 is evolving—from being primarily affordable to a dynamic, competitive real estate environment. While prices are rising, the emirate still offers compelling value compared to Dubai, especially for mid-tier buyers and investors seeking healthy rental returns. However, those considering renting may feel the pressure of recent steep increases. As always, timing and property selection are vital. watch more