10% growth compared to Q-3 last year

Sharjah real estate transactions record AED 4.6b in Q-3

 Al Shamsi: Sharjah is a stimulating, supportive environment for business, foreign direct investments.

• Al Shamsi: Recent government stimulus decisions boost recovery of real estate sector in Sharjah.

Government Communication Department – Sharjah Real Estate Registration Department – 15/11/2020

The real estate sector in the emirate of Sharjah has recorded a (10%) growth in the real estate transactions concluded in the third quarter of 2020 as compared to the same period last year. Figures show that up to (14,854) real estate transactions, worth AED 4.6 billion, were sealed over Q-3 this year.

The sales transactions recorded in the third quarter covered (14.6) million square feet, as per the latest quarterly report of the areas and cities of the emirate issued by the Sharjah Real Estate Registration Department (SRERD).

H.E Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Department, said the reported growth is mainly attributed to the series of stimulus decisions recently taken by the Government of Sharjah to contain the effects of the Covid-19 global pandemic.

“The support given to all government and private entities, business and individual sectors, included an extended three-month exemption of the annual license renewal fees for economic establishments, a discount of (50%) on delayed fines and violations for economic establishments, and a discount of (50%) on the license fees for industrial establishments to help boost the contribution of the industrial sector to the gross domestic product.”

A further discount was also granted on the insurance and supply fees of electricity, water and natural gas services for the owners of economic, commercial and industrial establishments who were permitted to pay due fees in instalments over two years to reduce their financial burdens, Al Shamsi elaborated.

Al Shamsi said the decisions, covering all aspects of institutional and community work, proves that Sharjah is once again a stimulating and supportive environment for business and foreign direct investments. “This enhances the regional leadership and global position of the emirate which secures an appropriate environment for investors and customers locally and abroad.”

Reducing the fees on the sale value from (4%) to (2%) for non-GCC purchasers until March 31, 2020 was also a major decision, he underlined. “This new decision, along with the latest stimulus package, have led to a rapid recovery of the real estate sector here that it continues to play a pivotal role in the progress and prosperity of the emirate.”

Completing previous projects and launching new ones, like the development projects recently accomplished in the Eastern Region sent an important message to the investors about the stability of the economic situation in the emirate despite the pandemic, Al Shamsi said. “The emirate was not affected by the global crisis thanks to the insightful vision of the prudent leadership and its passion to keep work as per set plans.”

Main branch accounts for 95.7% of total investments value

Al Shamsi said the main branch accounted for (95.7%) of the total real estate investments value recorded in the third quarter of 2020. “These are compared to (4.3%) for other branches: (1.4%) for the Central Region branch, (1.6%) for Khor Fakkan and Dibba Al Hisn branch, and (1.3%) for Kalba branch.”

Transaction Classification

The property statement transactions topped by (8,743) transactions, followed by (3,539) property title transactions, (1,675) initial sale transactions, (676) mortgage transactions, and (221) valuation transactions.

Mortgage transactions

Up to (676) mortgage transactions, worth AED 1.9 billion, were recorded in Sharjah

in the third quarter of the year.

Sales transactions per area

Up to (1,090) sales transactions were registered across the emirate in the third quarter of 2020. Most of these were conducted in Sharjah city with (928) transactions valued at AED 1.1 billion. These covered (75) areas, led by Al Khan area with (159) transactions, while Al Tai area recorded (120) sales transactions valued at AED 144 million.

The Central Region recorded (44) sales transactions, worth AED 36.4 million, across (19) areas. The highest sales value in the Central Region was at Al Blida area where (3) sales transactions, worth AED 9.2 million, were sealed.

Up to (38) transactions, worth AED 24.1 million, were recorded at (11) areas in Khor Fakkan. The highest value of sales in the Khor Fakkan was AED 9.8 million that was recorded at Al Midifi area where (11) sales transactions were concluded.

These are compared to (18) sales transactions sealed at (5) areas of Dibba Al-Hisn city against AED 12.6 million. The highest sales value there was at the Western District which recorded (4) transactions valued at AED 4.3 million.

The Kalba city recorded (62) sales transactions, worth AED 35 million, at (21) areas, led by (9) transactions, worth AED 8.2 million, at Al Saf area.

Benefit sale transactions

The emirate of Sharjah recorded (27) benefit sale transactions in the third quarter of this year, worth AED 41.2 million. These were led by ‘Al Saja Industrial area’ where (7) benefit sale transactions were sealed against AED 15 million.

Residential properties on the top

Residential properties topped the list in the third quarter of 2020 with (813) sale transactions. The industrial transactions came second with (120) sales transactions, followed by (108) commercial transactions, and (49) agricultural sale transactions.

The residential properties, topping the list, constituted (74.6%) of the sales transactions sealed in the third quarter of 2020. These are compared to (11%) for the industrial sales transactions which came second, (9.9%) for the commercial sales transactions which ranked third, and finally (4.5%) for the agricultural sales transactions.

In total, up to (1,090) sale transactions of all types of properties were recorded or a rise of (68.7%) compared to the same period last year.

In terms of properties kind, residential apartments topped the list with (307) apartments, followed by (236) residential built-up lands, (193) residential vacant lands, and (76) industrial vacant lands.

Investors from 47 nationalities

Investors from (47) nationalities were involved in the reported real estate transactions in the emirate of Sharjah in the third quarter of the year 2020. These included 3,630 GCC investors, including Emirati nationals, who traded (4,483) properties, worth AED 3.5 billion, and (691) foreign investors who traded (731) properties, worth AED 1.1 billion.

(ENDS)