Sharjah Offers Affordable Living Amid Dubai's Sky-High Rent
As Dubai rents continue to soar, many expats are finding themselves priced out of the glamorous metropolis. Enter Sharjah, Dubai’s neighboring emirate to the north, which is emerging as a more affordable option. Less than two years after passing a law allowing foreigners to buy property in select areas, Sharjah is now luring investors, with developers constructing tens of thousands of new homes to meet rising demand.
Why Are People Moving to Sharjah?
Lower rents and the overall reduced cost of living make Sharjah an attractive option for many. Home values in Dubai have risen for 16 consecutive quarters, with rents for single-family homes skyrocketing by 86% since the start of the pandemic. In contrast, Sharjah continues to offer more affordable housing options, and the shift has caught the attention of many investors and residents.
Developments Changing Sharjah's Landscape
Sharjah's housing landscape is evolving. Previously, much of the housing consisted of older towers with fewer amenities compared to those in Dubai. But that’s changing with projects like Aljada, a $9.5 billion development by Arada Developments. Owned by members of Saudi and Sharjah’s ruling families, Aljada aims to provide 25,000 homes, entertainment areas, restaurants, shops, sporting facilities, and even one of the region’s largest skate parks.
One-third of Aljada is already complete, with the rest expected to be finished by the end of the decade. Talks are underway with officials to introduce licenses similar to Dubai's economic free zones, offering tax exemptions and other benefits.
Sharjah's "Heart of Sharjah" project also aims to preserve the emirate’s heritage, restoring old souks and narrow alleys, offering a blend of traditional culture and modern convenience.
Read More: Average Salaries in Sharjah
Surge in Foreign Interest
The number of foreigners buying property in Sharjah is on the rise, thanks to recent legal changes allowing foreign ownership. Indian buyers now make up around 29% of home sales in Arada’s developments, a significant jump from just a few years ago. Buyers from Germany, Canada, and the UK now also account for 10% of purchases.
Property prices in Sharjah have also increased due to demand. When Arada started selling Aljada homes, the price per square foot was around 650 dirhams ($177). Now, it's at 1,400 dirhams per square foot—still about 40% less than comparable areas in Dubai.
Measures to Maintain Affordability
Sharjah's government is taking steps to keep housing affordable, including a three-year freeze on rents for new tenants and allowing rent increases only once every two years after that period. These measures, along with new developments, have helped maintain its appeal for residents looking for more affordable living without sacrificing quality.
New Opportunities for Developers
Other developers are also seizing the opportunity in Sharjah. Abu Dhabi's Eagle Hills is building a luxury residential and tourism destination on Maryam Island. SEE Holding, a developer focused on sustainable infrastructure, is constructing over 1,200 homes in phases, with strong sales figures. Another active developer in the city is the Sharjah-based Alef Group.
Demand from buyers relocating from Dubai has resulted in increased business for property brokers. Muhammad Qasim, the Sharjah branch manager for Betterhomes, says the brokerage has seen a 60% surge in sales this year, leading to a need to double its team to keep up with demand.
More Than Just Affordable Living
Arada is also working on Masaar, a $2.5 billion development in Sharjah set to include around 3,000 homes by 2026, with plans to plant 50,000 trees. The development will also feature a 13-kilometer cycling and jogging track, adding much-needed green space and recreational facilities for the city’s residents.
Leafy streets and family-friendly amenities are what convinced longtime Dubai resident Tania Patel to consider moving. After finding a four-bedroom home in Sharjah for 2.7 million dirhams—about half of what she would have paid in Dubai—she decided to make the move. Although her commute to Dubai now takes about 50 minutes, she finds the lower cost of living well worth it.
Challenges and Considerations
However, hurdles remain. Public transportation in Sharjah is still limited, and buying property isn't as streamlined as in Dubai, though developers say the process is improving. Sharjah's conservative culture also sets it apart, making it more attractive to those who appreciate a quieter and traditional lifestyle. Alcohol sales are banned, and the hookah lounges popular in Dubai are absent in Sharjah.
Still, for those seeking a more affordable and family-friendly environment without being too far from Dubai, Sharjah is becoming an increasingly popular choice.