Expats are increasingly moving to Sharjah as rents in Dubai continue to rise like there’s no tomorrow.
The most conservative of the seven emirates passed a law in 2022 that enabled foreigners to buy its real estate and it looks like the legislation has already started to pay off.
Sharjah is building thousands of homes and demand is keeping up with the supply as lower rents and lower cost of living continue to make expats migrate from Dubai to the 7,000-year-old city.
Cost of living has skyrocketed in Dubai
Rents in Dubai have soared 86% over the past four years while home values have been pushing up since the start of the COVID pandemic, as per data from real estate consultancy JLL.
In comparison, Sharjah offers significantly more affordable housing albeit at a cost.
Most of the residential buildings as well as the city at large lack the glamour and facilities that helped make Dubai a top tourist as well as an expat destination.
However, the developers are fully committed to addressing that deficiency. Arada Developments is investing $9.5 billion in Aljada – a project that involves luxury residences, entertainment, sports facilities, upscale shopping and dining avenues, and massive skate parks.
Ahmed Alkhoshaibi – the chief executive of Arada Developments expects Aljada construction to be completed by 2030. At the same time, local leaders are focusing on restoring souks and historic buildings to preserve the essence of Sharjah as well.
Are prices increasing in Sharjah as well?
Rising demand for Arada’s constructions in Sharjah is translating to higher prices. But CEO Alkhoshaibi is confident that they will continue to beat comparable locations in Dubai by as much as 40%.
Shane Breen of property brokerage Savills echoed a similar view in a recent statement, saying “Even with [increased prices], Sharjah remains more affordable as the price difference is still so big between the two markets.”
Note that it’s against the law for landlords in Sharjah to raise rents for new tenants in the first three years – and even after that, they can increase rent only once in 24 months.
That’s why AED 60,000 per year gets you a luxury one-bedroom apartment in Sharjah while the same may not even get you a furnished studio in certain locations of Dubai.
“There’s demand for luxury and quality … we’re seeing huge migration from the old Sharjah,” as per Arada chief executive Ahmed Alkhoshaibi. The company’s $9.5 billion Aljada project is located at a 20-minute drive only from the Dubai airport.
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