SHARJAH, 27th July, 2022 (WAM) — The semi-annual report issued by the Sharjah Real Estate Registration Department (SRERD) revealed that the value of real estate trading during the first six months of 2022 amounted to AED 11.2 billion.
The total number of sales transactions amounted to 3,327, with a total value of AED4.1 billion, of which AED3.9 billion were in the city of Sharjah alone. The sale of usufruct transactions amounted to 141 worth AED243 million, while mortgages recorded a value of AED5.3 billion. Investors from 75 different nationalities executed real estate deals during this period.
Abdulaziz Rashid Al Saleh, Director of the Sharjah Real Estate Registration Department, said, “The real estate sector in Sharjah continues to improve at an accelerating pace, taking advantage of the competitive opportunities enjoyed by investors despite any challenges, mainly due to the increase in the volume and number of transactions in the residential sector, as well as the launch of a number of major real estate development projects, which motivates investors to expand the transactions and conduct real estate deals, considering real estate the safest and most appropriate haven for their investments in light of the relative increase in inflation rates.”
Reflecting on the first half of the year, Al Saleh pointed out that the increase in the total number of transactions executed by the (SRERD) at its headquarters and branches confirms that the sector is heading towards future growth.
Many investment opportunities coupled with a growing population are of particular interest to beneficiaries of all categories of owners, investors, brokers, and developers. This is in line with the visions of the wise leadership and the directives of H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, towards comprehensively promoting and harnessing the economic and social development witnessed by the emirate of Sharjah to serve citizens and residents and provide them with the best standards of living. He highlighted the importance of providing all services and infrastructure to attain this lofty government goal and pointed out that during the first half of the year, four major development real estate projects were registered, including three residential and one commercial project.
Real Estate Trading Volume
In detail, the report showed that March led the first half of 2022 in terms of trading volume with a total of AED2.7 billion, followed by June with a total of AED2 billion, and February with a total of AED1.9 billion.
As for the department’s branches, the Sharjah branch accounted for 96.9% of the total trading volume, with a value of AED10.9 billion. The four branches of the department witnessed a trading volume of AED346 million.
Transactions rise by 10.4%
The department’s transactions in the first half of 2022 amounted to 44,485, with an increase of 10.4% compared to the same period in 2021, which amounted to 40,294 transactions, with most of these transactions increasing in the current year at varying rates.
At the forefront came the ownership certificates of 26,729 transactions, representing 60% of the total, while the increase in ownership deeds transactions amounted to 12,614, representing 28.3% of the total, was driven by the rise in sales and sorting transactions. Similarly, valuation transactions increased by 551, and Mortgage transactions of different types with an amount of 2,560.
Initial sale contracts amounted to 2,031 transactions, with 1,624 transactions for the purpose of ownership representing nearly 80% of the total amount of contracts.
3,327 sales transactions
Sales transactions during the first half of this year increased by 16.2% compared to last year, recording 3,327 transactions. This includes 3,020 transactions in the city of Sharjah, which represents 90.8% of the total; Kalba recorded 108 transactions; the central region had 100 transactions; 89 transactions were recorded in the city of Khorfakkan; while the city of Dibba Al Hisn had ten sales transactions.
Muwaileh Commercial is at the forefront of the regions
According to the distribution of sales transactions in Sharjah, there is a wide diversity in trading in the city’s areas, with a total of 100 areas. Most notably, Muwaileh Commercial area witnessed sales transactions worth 736 million dirhams, with a number of 716 transactions accounting for 23.7% of the total sales transactions in the city. This was followed by Al-Khan and Hoshi areas, where transactions amounted to 1,429, representing 47.3% of total transactions in the city.
In addition, sales transactions were more noticeable in 10 areas which are: Muwaileh Commercial, Al-Khan, Hoshi, Al Majaz 3, AlRigaibah, Al Sajaa Industrial, Rodhat Al Qrt, Al Majaz 2, Al Nahda, and Muzaira’a representing 75.6% of the total sales transactions with a number of 2,282 transactions. And the remaining 738 transactions were across 90 other areas.
In the central region, 100 sales transactions were across 24 areas: 20 in Al-Taybeh 2 area and 15 in Al-Maliha area. In Khorfakkan, 17 areas witnessed 89 sales transactions, including 18 transactions in Al-Harrai industrial area, representing 20.2%, while sales transactions in the city of Dibba Al-Hisn were limited to 4 areas, with a total of 10 transactions, of which 5 were in Hay Al Shamali, and 3 in the Hay Al Seeh. Sales transactions in the city of Kalba amounted to 108 across 20 areas. Industrial area accounted for 27 transactions, representing 25% of the total.
128 Usufruct Sale Transactions
The first half of this year recorded 128 usufruct sales transactions in the Emirate of Sharjah, with a total trading value of AED222.7 million. Muwaileh Commercial area had 62 transactions, accounting for 48.4% with a total trading value of AED131.3 million. The remainder of the transactions were distributed across Al-Khan, Al-Nahda, Telal, Al Sajaa Industrial, Al Rigaibah, and Al-Majaz 3 areas, with a total of 66 transactions.
Usufruct Resale Transactions
13 usufruct resale transactions were recorded in the emirate during the past six months with a trading value of AED20.2 million. Transactions were distributed with 6 transactions in Muwaileh Commercial, the same in Al Nahda, and one transaction in Tilal.
Classification of traded real estate
Traded real estate properties including residential, commercial, industrial, and agricultural in the Emirate of Sharjah covered an area of approximately 30 million square feet. It was spread across 1,042 vacant lands with an area of 10.1 million square feet.
Built, under construction and agricultural land recorded 843 transactions covering 18.6 million square feet. The number of units sold in towers were 1,142 with an area of 1.3 million square feet.
By classifying properties, residential properties represented 71.9% of the total, followed by industrial with 11.7%, then commercial by 11.1%, and agricultural properties 5.3%.
Investors from 75 countries
During the first half of 2022, real estate investors from 75 different nationalities concluded deals on 14,646 properties. GCC nationals of 6,492 invested in 12,428 properties with 84.8% of the total number of properties traded. The trading volume of GCC nationals amounted to AED8.2 billion accounting for 73.2% of the total trading volume. While 2,139 investors from other nationalities invested in 2,218 properties with 15.1% of the total number of properties traded during this period. The trading volume of those investors amounted to AED3 billion accounting for 26.8% of the total trading volume.