Dubai Real Estate: Expats Facing Rising Rents
With an increasing number of expats saying they’re being pushed out of Dubai due to soaring rents, a 7,000-year-old city is offering a nearby haven.
Sharjah Attracting Investors
Sharjah, Dubai’s northern neighbor, is luring investors to its shores, two years after passing a law allowing foreigners to buy property in select areas. Developers are constructing tens of thousands of homes in the emirate.
Lower Costs Driving Migration to Sharjah
“You have lower rents and lower costs of living overall,” says Prathyusha Gurrapu of Cushman & Wakefield Core. Many people are moving to Sharjah as Dubai’s rents have surged, with home values rising for 16 consecutive quarters.
Sharjah’s Affordability and Development
Sharjah has long been more affordable than Dubai, with older housing supply. However, new projects are emerging. Arada Developments is building a $9.5 billion project called Aljada, which will include 25,000 homes, entertainment, and sports facilities.
Sharjah’s Historical Legacy
Sharjah, first settled over 7,000 years ago, has been ruled by the Al Qasimi dynasty since the 1600s. Historically wealthy due to ports and pearl fishing, Sharjah’s government is also working on the “Heart of Sharjah” project to preserve historic areas.
Increasing Demand and Rising Prices
Indian buyers now make up about 29% of home sales in Arada’s developments, with buyers from Germany, Canada, and the UK comprising 10%. Prices have surged from 650 dirhams per square foot to 1,400, though Sharjah remains more affordable than Dubai.
Developers See Opportunity
Other developers, such as Abu Dhabi’s Eagle Hills and Sharjah’s Alef Group, are also investing in the city. Sharjah’s government has introduced a three-year rent freeze for new tenants to maintain affordability.
Family-Friendly and Affordable
Residents like Tania Patel, a Portuguese native, have moved to Sharjah for its lower costs and family-friendly atmosphere, even if the commute to Dubai takes longer. Costs in Sharjah are about 30% cheaper compared to Dubai.
Challenges for Investors
Sharjah still has limited public transport and a less streamlined property buying process compared to Dubai. However, its conservative, family-friendly culture appeals to both Emiratis and Arab expats.
