Sharjah Real Estate: 5 New Projects Unlocking Freehold Opportunities in 2025

REAL ESTATE1 month ago

Sharjah’s AED 40B real estate market in 2024 (11,116 transactions, 48% year-on-year growth) offers apartments (AED 350K–4M), villas (AED 1M–7M), and townhouses (AED 1M–5M) with 7–9% ROI and 8–12% appreciation by 2028.

With 1.9M residents (5% annual growth), proximity to Dubai, and a 6.5% GDP growth forecast for 2025, demand is driven by freehold laws (since 2022, open to all nationalities), infrastructure (e.g., Etihad Rail), and tax advantages zero personal income, capital gains, and inheritance taxes, VAT exemptions on residential properties, and 0% corporate tax for qualifying free zone income.

Five new projects in 2025 Aljada, Masaar, Sharjah Sustainable City Phase 4, Maryam Island, and Alef Hayyan unlock freehold opportunities with sustainable designs and mixed-use amenities. Supported by 95% absorption and Sharjah Real Estate Registration Department (SRERD) escrow protections, these projects attract diverse investors (120 nationalities in 2024). This guide details each project, its freehold benefits, tax incentives, and investment potential, backed by 2024–2025 data.

1. Aljada

Project Details: A 24M sqft master-planned smart city by Arada in Muwailih Commercial, offering 1–3-bedroom apartments (AED 500K–2M, 400–1,500 sqft), townhouses (AED 1.5M–3M), and villas (AED 2M–5M) with retail, schools, and Madar entertainment hub. Handover Q2–Q4 2025 with a 50/50 payment plan.
Freehold Benefits: Full freehold ownership for all nationalities (no residency visa required since 2018) with inheritance rights. Convertible from 100-year leasehold to freehold via SRERD approvals, boosting resale flexibility.
Tax Incentives: Zero-rated first supply avoids 5% VAT (saving AED 25K–250K). Zero personal income tax on rentals (AED 35K–200K/year), zero capital gains tax on profits (e.g., AED 40K–600K by 2028), and zero inheritance tax. Gift transfers reduce 4% RETT to 0.125% (saving AED 9K–99K). Free zone ownership via Sharjah Media City ensures 0% corporate tax.
Investment Potential: 7–9% ROI, with 85% occupancy driven by proximity to University City and Sharjah Airport. AED 4.26B in 2023 sales, with 8–12% appreciation by 2028 (e.g., AED 500K apartment to AED 540K–560K).
Impact: Freehold flexibility, tax savings (AED 34K–349K), and urban amenities make it a top choice for expat and local investors seeking high-yield rentals.

2. Masaar

Project Details: A 19M sqft Arada community in Al Suyoh Suburb, offering 2–5-bedroom townhouses and villas (AED 1.5M–5M, 1,500–4,000 sqft) with forested landscapes, parks, and wellness amenities. Masaar 2 sold AED 5.6B in 3 hours in 2025. Handover Q3 2025 with a 1% monthly payment plan.
Freehold Benefits: Freehold ownership for all nationalities with inheritance rights, convertible from leasehold via SRERD. Supports global resale and long-term wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 75K–250K). Zero personal income tax on rentals (AED 100K–300K/year), zero capital gains tax on profits (e.g., AED 120K–600K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 29K–99K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 7–8% ROI, with 85% occupancy due to family-friendly design. AED 5.6B in 2025 sales, with 8–12% appreciation by 2028 (e.g., AED 1.5M townhouse to AED 1.62M–1.68M).
Impact: Freehold access, tax savings (AED 104K–349K), and rapid sales reflect strong demand for mid-to-high-end family homes.

3. Sharjah Sustainable City Phase 4

Project Details: A 7.2M sqft eco-friendly project by Shurooq and Diamond Developers in Al Rahmaniya, offering 3–5-bedroom villas (AED 1.8M–4M, 2,000–4,500 sqft) with solar power, water recycling, and car-free zones. Handover Q4 2025 with a 60/40 payment plan.
Freehold Benefits: Freehold ownership for all nationalities with inheritance rights, enabling global investment and legacy planning. SRERD supports seamless title transfers.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 90K–200K). Zero personal income tax on rentals (AED 120K–250K/year), zero capital gains tax on profits (e.g., AED 144K–480K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 35K–79K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 6–8% ROI, with 80% occupancy driven by sustainable appeal and lower utility costs. AED 1B in 2024 sales, with 8–10% appreciation by 2028 (e.g., AED 1.8M villa to AED 1.94M–1.98M).
Impact: Freehold access, tax savings (AED 125K–279K), and eco-friendly features attract investors prioritizing sustainability and cost efficiency.

4. Maryam Island

Project Details: A 3.3M sqft Eagle Hills waterfront project in Al Heerah Suburb, offering 1–3-bedroom apartments (AED 500K–2M, 400–1,500 sqft) and villas (AED 2M–4M) with beachfront views, retail, and hotels. Handover Q3 2025 with a 50/50 payment plan.
Freehold Benefits: Freehold ownership for all nationalities with inheritance rights, supporting global sales and wealth transfer. SRERD enables conversions from leasehold to freehold.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 25K–200K). Zero personal income tax on rentals (AED 35K–200K/year), zero capital gains tax on profits (e.g., AED 40K–480K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 9K–79K). Free zone ownership via Sharjah Media City ensures 0% corporate tax.
Investment Potential: 7–9% ROI, with 80% occupancy driven by tourism and proximity to Al Khan. AED 800M in 2024 sales, with 8–12% appreciation by 2028 (e.g., AED 500K apartment to AED 540K–560K).
Impact: Freehold flexibility, tax savings (AED 34K–279K), and waterfront appeal make it ideal for investors targeting rental income and capital growth.

5. Alef Hayyan

Project Details: An 8.7M sqft Alef Group project in Barashi, Mughaidir Suburb, offering 2–5-bedroom villas and townhouses (AED 1.5M–4M, 1,500–4,000 sqft) with green spaces and retail. Handover Q3 2025 with a 1% monthly payment plan.
Freehold Benefits: Freehold ownership for all nationalities with inheritance rights, supporting global investment and legacy planning. SRERD facilitates title transfers and leasehold-to-freehold conversions.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 75K–200K). Zero personal income tax on rentals (AED 100K–250K/year), zero capital gains tax on profits (e.g., AED 120K–480K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 29K–79K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 7–8% ROI, with 85% occupancy driven by family-oriented design and proximity to University City. AED 950M in 2024 sales, with 8–12% appreciation by 2028 (e.g., AED 1.5M villa to AED 1.62M–1.68M).
Impact: Freehold access, tax savings (AED 104K–279K), and community amenities attract investors seeking affordable, high-yield family homes.

Market Trends and Outlook for 2025

Yields and Appreciation: Sharjah offers 7–9% ROI (apartments 7–9%, villas 6–8%) and 8–12% appreciation, driven by AED 40B in 2024 sales and 15% rental growth. Off-plan sales (70% of transactions) dominate, with 5,000 units expected in 2025–2026. Prices rose 13% in 2023 (AED 800–2,500 psf).
Freehold and Tax Environment: Freehold laws since 2022 allow all nationalities to own property with inheritance rights, boosting demand (120 nationalities in 2024). Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, ensure tax efficiency. The 4% RETT (2% buyer) drops to 0.125% via gift transfers, saving AED 9K–99K on AED 500K–5M properties. Free zone entities (e.g., Sharjah Media City) offer 0% corporate tax. No RETT changes are confirmed for 2025.
Infrastructure Impact: Etihad Rail and Sharjah Research, Technology, and Innovation Park’s sky pod (2.4km, 100kph) boost values by 5–10%. Tourism (1.4M visitors in 2024) and 80–85% occupancy drive rental demand (AED 500–1,500/night short-term).
Investor Drivers: Freehold status, 100% foreign ownership, and flexible payment plans (5–10% down) fuel 70% of demand. Proximity to Dubai (AED 13,250/sqm vs. AED 17,334 in Dubai) and 50% registration fee discounts at events like Acres 2024 attract buyers.
Risks: Oversupply (5,000 units by 2026), AML compliance costs (AED 2K–5K), and traffic congestion pose a 10–12% correction risk in H2 2025. Mitigated by 95% absorption, SRERD escrow accounts, and regulatory oversight.
Regulatory Framework: SRERD ensures transparency with 4% RETT and real-time portal services (launched July 2025) for project registration and contract certification. Escrow laws protect off-plan investments (e.g., Masaar, handover Q3 2025). Freehold zones allow inheritance rights.

Investment Strategy

Diversification: Invest in Aljada (AED 500K–5M, 7–9% ROI) or Maryam Island (AED 500K–4M, 7–9% ROI) for apartments and waterfront appeal, Masaar or Alef Hayyan (AED 1.5M–5M, 7–8% ROI) for family-oriented villas/townhouses, or Sharjah Sustainable City Phase 4 (AED 1.8M–4M, 6–8% ROI) for eco-conscious investments.
Entry Points: Off-plan units (5–10% down) like Alef Hayyan (1% monthly) provide flexibility. Completed units in Aljada suit immediate rentals (AED 35K–300K/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use free zone entities (e.g., Sharjah Media City) for 0% corporate tax. Use gift transfers (0.125% RETT) or payment plans to reduce costs. Recover input VAT (AED 2K–20K/year) via FTA registration. Consult advisors like Shuraa Tax for compliance.
Process: Verify freehold status and tax benefits via SRERD’s 2025 portal. Pay 2% buyer RETT and secure NOC. Use platforms like Property Finder, squareyards.ae, or dxboffplan.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Sharjah’s five new projects Aljada, Masaar, Sharjah Sustainable City Phase 4, Maryam Island, and Alef Hayyan unlock freehold opportunities with 7–9% ROI and 8–12% appreciation, backed by AED 40B in 2024 sales.

Freehold laws (since 2022) enable global ownership and inheritance, while tax advantages zero personal income, capital gains, and inheritance taxes, VAT exemptions, and gift transfers (saving AED 9K–99K) maximize returns.

Despite a 10–12% correction risk, 95% absorption, SRERD protections, and infrastructure (e.g., Etihad Rail) ensure stability. Explore opportunities via Property Finder, squareyards.ae, or developers like Arada for high-return, tax-efficient investments in Sharjah’s dynamic freehold market. Sharjah