By Staff writer
Emirati investors and project handovers boost sales for Sharjah's largest property player
UAE developer Arada has announced a 10% increase in sales during the first half of 2020, a set of results which the company attributed to the resilience of the Sharjah market, where its projects are located.
The performance stands in sharp contrast to the malaise in the property sector in other parts of the UAE, with depressed consumer sentiment, oversupply and the effects of the coronavirus affecting real estate values and demand in Dubai.
Arada said in a press release that sales at its $6.5bn Aljada mixed-use community had risen by 6% in the first half compared to the same period a year earlier, while sales at Nasma Residences, a 1,000-unit $740m project that is nearly completed, increased by 21%.
The company also said that it had sold out a 153-unit apartment block within a week in June, making that month one of the highest-selling in its history.
Arada hinted that demand in the first half had been mainly driven by two factors; the completion of the first part of Aljada and ramped-up interest from Emirati buyers.
“This set of results proves that demand for quality real estate remains high in Sharjah, where the property market has remained stable over the course of the last decade or so,” said Arada’s chairman, Sheikh Sultan bin Ahmed Al Qasimi.
“Emirati buyers in particular continue to see value in our core proposition of providing well-designed homes with excellent local facilities at an accessible price point.”
The developer’s vice chairman, Prince Khaled bin Alwaleed bin Talal pointed towards an “ambitious programme of project launches, home deliveries and partnerships” in the second half, which he said was “an opportunity for us to cement a position as one of the region’s most active and resilient developers.”
“Sharjah has proved itself as the best performing property market in the region,” Ahmed Alkhoshaibi, chief executive of Arada, told Arabian Business.
“It has been a difficult six months, but also an immensely rewarding six months. The completion of the first part of Aljada, family destination Madar, in February, allowed buyers to come to the site, see what is taking place on the ground and get a real feeling for what this transformational project is all about. Our sales results since then have shown that investors see immense value in Aljada.”
The Sharjah property market has proved relatively resilient in recent years, with the value of transactions rising by 7% in 2019 by comparison to the year before. Arada, which was founded in 2017, reported that its own sales had increased by 33% year-on-year in 2019.
A mid-July report from Bayut and Dubizzle said that Dubai property prices and rents had declined by 4 percent in the first six months of 2020 on a year-on-year basis. A second report from JLL highlighted the slowdown in project handovers in Dubai during the second quarter as demand remains tepid.