Saturday, January 06, 2018
The Emirate of Sharjah has been in the limelight throughout the year 2017. With new technology parks, airport expansion, new hospitals and focus on digitization, Sharjah has certainly been a hot topic last year.
Many major developers have come forward to announce that Sharjah is a strong location. They clearly view the emirate as an apt place for new residential, retail and hospitality projects. Residential projects have been launched in the city as well. To be more precise, the largest privately-owned mixed-use real estate project has been launched by a UAE-Saudi joint venture in Sharjah.
Developers are certainly taking a lot of interest in Sharjah presently.The top factor is the government’s decision in 2014 to relax ownership rules. This has opened gates not only for the citizens of Arab countries, but even the investors elsewhere to buy property in the emirate.
Sharjah has an ideal economic environment in the present times. Despite the constraints that are affecting budgets elsewhere, the government budget here is hitting a new high this year, reaching Dh22 billion for the first time. All thanks to the lower oil price. Investment on infrastructure has conjured up by 7 per cent that represents almost a third of the full budget.
Since one-third of the UAE’s manufacturing base is located in Sharjah, Sharjah’s real GDP average growth is expected to be 2.4 per cent between the period of 2017-20 (or about 5 per cent on average in nominal terms). This is stated by the Ratings agency Standard & Poor’s projects.
Presently referred to as the “cultural capital” of the UAE, Sharjah possesses museums and galleries that has been welcoming hundreds of thousands of visitors every year for decades. It is anticipated that in 2019, the city will become UNESCO’s World Book Capital. Such efforts are being complemented by the excellent work being done by Sharjah Investment and Development Authority (Shurooq).This is consistently contributing to the development of a decent number of projects to showcase the incredible diversity of Sharjah.
The transport infrastructure, particularly in the roads that link Sharjah to Dubai, shall be upgraded to make traveling easier for all the workers who commute between the two emirates almost regularly. The growing economy in Sharjah is leading to a remarkably growing population with the number of people living in Sharjah approaching to a count of 1.5 million.
However, the most common question here is whether the current real estate mix in the city is meeting residents’ expectations.
As per the research study, the supply of mid-market homes for end-users is not meeting the demand. This is one of the reasons why Arada was launched at the beginning of this year. Due to this deficit in supply, it is pretty evident that yields on real estate investment are actually higher than in other parts of the UAE for investors.
In last year’s ‘Cluttons Middle East Private Capital Survey’, Sharjah was ranked third in the GCC, right after Dubai and Abu Dhabi, as an outstanding location for the region’s wealthiest property investors.
Unlike the other parts of the Gulf, the fluctuations in property prices over the period of the last decade have been pretty mild in Sharjah. The investors are aware that investing in Sharjah is relatively less risky and reasonably profitable at the same time.
No wonder some of the region’s largest and most well-known developers and local players like Arada are of the opinion that this is the right time to invest in Sharjah. This is a good start for Sharjah surely. All of these development plans pose a win-win situation for home buyers, residents, local businesses as well as Sharjah.
Source: Gulf News