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Sharjah draws record foreign investment as property deals surge 58%

Savills says record transaction growth in 2025 marks Sharjah’s strongest year on record, driven by a 62% jump in foreign investment and soaring demand for villas but warns expansion will likely moderate in 2026

Rental yields in Sharjah
Savills said rental yields in Sharjah average between 5% and 6% for villas and around 8% for apartments, comparable with Dubai but with much lower entry prices. Image: Shutterstock

Real estate transactions in Sharjah jumped 58 per cent year-on-year in the first nine months of 2025, surpassing all of last year’s totals as foreign investment surged following the emirate’s 2022 freehold reform, according to Savills.

The UAE’s third-largest emirate recorded AED44.3 billion (US$12.1 billion) worth of property deals during the period, making 2025 its strongest year on record.

“We’ve already exceeded the full-year 2024 numbers within the first nine months,” Shane Breen, Head of Sharjah at Savills Middle East, told Arabian Business. “The story is very positive. Sharjah’s market started later, but it’s now mirroring Dubai’s growth trajectory.”

Breen said the value of investment from foreign nationals rose 62 per cent year-to-date, as Sharjah attracts a broader mix of buyers beyond its traditional Arab and GCC base. Indian, Pakistani and European investors are increasingly active, alongside UAE nationals who remain the largest group by volume.

“Historically, Sharjah was very end-user focused and largely Arab dominated,” Breen said. “But we’re now seeing a much more even spread across nationalities. That’s creating a healthier, more liquid market, one that’s maturing and stabilising.”

Record year for Sharjah real estate

The surge has been led by demand for villas and townhouses, where accessible pricing and community developments have drawn family buyers. Developers such as Arada, IFA and Alef Group launched large-scale projects including Masaar, Al Tay Hills and Khalid bin Sultan City to meet that demand.

“The delta between pricing in Sharjah versus Dubai is massive,” Breen said. “Families are looking to take advantage of that accessibility and quality of life.”

Savills said rental yields in Sharjah average between 5 per cent and 6 per cent for villas and around 8 per cent for apartments, comparable with Dubai but with much lower entry prices.

Despite record activity, Breen said oversupply risks remain limited, with only about 5,000 units launched in 2025 – far below Dubai’s pipeline.

“One major Dubai launch can double Sharjah’s entire annual supply,” he said. “Developers here are being smart about when and how they bring products to market.”

Savills expects continued growth in 2026, though at a more sustainable pace.

“No market can sustain that level of growth into perpetuity,” Breen said. “We’ll continue to see expansion, but likely at a more measured rate as the market matures.”

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Tala Michel Issa

Tala Michel Issa

Tala Michel Issa is the Chief Reporter at Arabian Business and Producer/Presenter of the AB Majlis podcast. Her interviews feature global figures including former Nissan Chairman Carlos Ghosn, Mindvalley's...

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  • Tala Michel Issa

    Tala Michel Issa is the Chief Reporter at Arabian Business and Producer/Presenter of the AB Majlis podcast. Her interviews feature global figures including former Nissan Chairman Carlos Ghosn, Mindvalley's Vishen Lakhiani, former US government adviso...

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