|22 October, 2019

Emerging Sharjah's demand for residential projects surges in Q2: Savills

Tenants living in Central Sharjah prioritise affordability, unit size and payment flexibility

Image used for illustrative purpose. Sharjah downtown, with families hanging out along the Khalid Lake corniche's gardens in the afternoon, with the Central Souq and downton's skyscrapers in the background.

Image used for illustrative purpose. Sharjah downtown, with families hanging out along the Khalid Lake corniche's gardens in the afternoon, with the Central Souq and downton's skyscrapers in the background.

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Growing population in Sharjah is driving an increase in demand for new residential units across Emerging Sharjah, a study by Savills showed.

According to Savills, enquiry levels across Emerging Sharjah increased by 50 percent from Q1 to Q2 2019 and the trend is expected to continue for the remainder of 2019.

University City grabs 36 percent of the total demand, followed by Al Khan at 24 percent, while Al Sharq District and Al Qassimiya District registered each 11 percent of the total demand.

“Sharjah’s mature social infrastructure, vibrant retail environment and a relatively affordable cost of living has set it on the map as the preferred residential destination across the Emirate,” said Suzanne Eveleigh, Head of Sharjah – Savills.

“With limited space and historically high land prices, developers of new residential projects have looked to the outskirts of the city where congestion is lower and development land is not in short supply,” Eveleigh added.

Savills said that tenants living in Central Sharjah prioritise affordability, unit size and payment flexibility, while tenants in Emerging Sharjah look for amenities and facilities, security and community lifestyle.

Recent projects like Al Zahia, Al Jada, and Nasma Residences provide excellent connectivity to other emirates and good quality development at relatively affordable rates, the real estate services provider said.

Shane Breen, Director of Commercial Valuations and Consultancy Services at Savills-Sharjah commented: “Gated communities in Emerging Sharjah and ready-to-move-in projects such as Al Zahia is the first example of how future master planned communities will be received in the market.”

“Average annual rents for studio and 1-bedroom apartments in Al Zahia are currently commanding a 5-10 percent premium on comparable properties in Sharjah City, within the high-end apartment segment,” Breen added.

(Reporting by Gerard Aoun, editing by Mily Chakrabarty)

(gerard.aoun@refinitiv.com)

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© ZAWYA 2019

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