Master-planned residences to boost Sharjah's growth prospects
Residential projects spanning more than 929ha in Sharjah are scheduled for completion by 2025, a local real estate market expert said
More master-planned homes are likely to be developed in the UAE's Northern Emirates, with Sharjah at the forefront of the trend.
Asteco’s Northern Emirates Real Estate Report Q1 2018 found that government priorities in the UAE's Northern Emirates were "geared towards infrastructure development" during the quarter.
John Stevens, managing director of Asteco, said residential projects spanning more than 929ha in Sharjah are scheduled for completion by 2025.
Among the master-planned or large-scale developments taking shape in Sharjah are three developments worth $735m (AED2.7m), one of which is Maryam Island by Eagle Hills and Shurooq, to drive investments into the emirate.
No major residential or office completions were announced in Sharjah during Q1 2018, but the emirate is likely to see a boost in its home unit numbers following the completion of the Nasma Residences' Phase 1 and the Al Zahia Residences projects, both of which are due for handover by the end of this year.
A legislation was recently passed allowing non-Arab nationals, who also do not hold a UAE residency visa, to purchase property in Sharjah on a 100-year, renewable lease.
Stevens said the legislation would benefit the emirate's property market in the long term: "The recently implemented legislation [...] is expected to stimulate demand and ultimately increase foreign investment in the real estate market.
"In addition, continued efforts to develop the private sector, and the emphasis on diversification strategies, are anticipated to strengthen the economy and shape a favourable environment for job creation, business growth, and investment."
Apartment rental rates across various Sharjah locations decreased by 1% on average in Q1 2018, and by 12% year-on-year.
The most significant quarterly decline (4%) was recorded in Rolla, while rates remained unchanged in neighbourhoods such as Abu Shagara, Al Butina, Al Yarmook, and Al Wahda.
Office rental rates declined by 2% on average during the first quarter of this year, although the figures remained stagnant in neighbourhoods such as Buhaira Corniche, Al Qasimia, Clock Tower Roundabout, Al Yarmook, and Industrial Area.
Commenting on the outlook for property rates in the Northern Emirates, Asteco's Stevens said: "We expect a further pressure on apartment rental rates, as recovery rates in the Northern Emirates are directly impacted by the delivery of supply in Dubai."