Sharjah24 :According to the report issued by the Sharjah Real Estate Registration Department (SRERD), the emirate real estate sector achieved a volume of transactions amounting to AED 6.7 billion during the first quarter of 2021, with a growth rate of 84.9% compared to the first quarter of 2020. Furthermore, the total number of transactions executed in the past three months reached 20,448 transactions, with an increase of 10.3% compared to the same period last year. In addition, the total traded area in the emirate reached 60.3 million square feet.

In this context, His Excellency Abdulaziz Ahmed Al-Shamsi, Director General of the Real Estate Registration Department in Sharjah, stated that the outcome of the real estate transactions in the emirate during the first quarter of 2021, is an evidence of the sector's gradual recovery. In addition, investors’ confidence was restored through the benefits of the set of incentives, facilities, and exemptions that was presented in November by Sharjah government, represented by the Executive Council of the emirate. It also contributed significantly in supporting entities and institutions in the government and private sectors, business sectors, and individuals, which also enabled them to overcome the effects of the Covid-19 crisis, in a manner that ensures the continuity of economic development in various sectors.

Al-Shamsi added that the sector also benefited from the decision of Sharjah government regarding reducing buyer fees for non-Gulf Cooperation Council citizens from (4%) to (2%) of the sale value, which makes it similar to Gulf citizens’ investors’ fees. This decision took effect at the beginning of last November, which encouraged Investors to conduct more real estate deals in the last quarter of 2020 and the first quarter of 2021. In addition, after the significant growth of trading activity in some areas of the emirate, such as Hoshi and Rodhat Al-Qrt, and due to the projects proposed by the government in these areas, the ownership was permitted for Arab investors and owners. Moreover, the announcement of Sharjah government about launching and implementing several major development projects in the cities of the Eastern Province had also represented additional support to revitalize the sector, with plans to return to normal conditions before the crisis. 

Transactions’ classification

His Excellency stated that mortgage transactions amounted to 696 transactions with a value of AED 2.6 billion, while ownership deeds amounted to 5,672 transactions. Initial sale contracts rose to 1,121 transactions by 26.9% due to the postponement of collecting initial contract fees.  Moreover, the launch of the real estate developer portal allowed the developers to electronically document the initial contracts without the need for the contracting parties to attend to the department.

In addition, the number of valuation transactions reached 272 transactions in various regions and cities of the emirate, and ownership certificates made up the largest share of the period's transactions, with a total of 12,687 transactions.

Sharjah in the lead

Al-Shamsi stated that the main branch accounted for 96.7% of the total investment value recorded during the first quarter of 2021, while the total investment value for the other branches represented 3.3%. The central region branch represents 1.7% of the total investment value, “Khor Fakkan” branch represents 0.7%, “Dibba Al-Hisn” represents 0.1%, while “Kalba” city represents 0.8% of the total investment value.

Transactions Sales as per area

His Excellency added that the number of sales transactions in various regions of the emirate during the first quarter of this year reached 1,392, with Sharjah having the largest share of them, with 1,225 transactions, which took place in 86 areas, and a value of AED 3 billion. The leading areas in the number of transactions were “Al Khan”, “Hoshi”, “Al Rigaibah”, “Al-Nahda”, and “Al-Majaz 3”, which represented 59.2% of the total sales transactions in the city. The highest transaction value was in “Tilal” area which reached AED 1.4 billion, including a transaction of AED 690 million.

As for the Central Region, the number of sales transactions reached 55 transactions that took place in 22 different areas, at a value of AED 50.7 million. These transactions were centered in “Taibah 2” and “Al-Malha” with a number of 19 transactions, which represented 34.5%.  The highest transaction value was in "Blida" area, at a value of AED 8 million, and “Al Faw” agricultural area transactions recorded a close amount as well.

The number of transactions in the city of “Kalba” reached 66 transactions in 17 different areas, with a value of AED 40.2 million, concentrated in “industrial” and “Al-Saf” areas, while the highest trading value in the city was in “Sur Kalba” area, with a value of AED 11.2 million.

Regarding the city of “Khor Fakkan”, 42 transactions were conducted in 11 areas of the city, at a value of AED 29.2 million. The transactions were concentrated in the "Al-Harai Industrial" and "Al-Harai Commercial" areas, while the highest trading value in the city was in the "Hayawa" area, at a value of AED 8.3 million.

Moreover, “Dibba Al-Hisn” witnessed 4 sales transactions in 3 regions, with a value of AED 2.9 million.

Usufruct Transactions

Regarding usufruct transactions in Sharjah, Al-Shamsi stated that during the first quarter of this year, it reached 61 transactions, all of which took place in 6 different areas in the city of Sharjah, with a value of AED 67.6 million. These transactions were led by “Al Nahda” area with 23 transactions.

Residential Real Estate in the lead
Al Shamsi also noted that residential real estate was at the top in terms of the number of transactions in the real estate sector during the first quarter of this year, as the number of transactions reached 1,044 transactions, which accounted for 75% of the total transactions, followed by industrial real estate with 157 transactions at a rate of 11.3%, and the Commercial real estate took third place by 11.2% with 156 transactions, and finally agricultural real estate by 2.5% with 35 transactions.

Investors from 43 nationalities

Investors from 43 nationalities from different countries of the world were involved in the real estate transactions in Sharjah in the first quarter of the year, with a total of 4,125 investors. These included 3,214 investors from the GCC countries, who traded 5,771 properties worth AED 5.3 billion. While 911 foreign investors traded 1,036 properties, at a value of AED 1.4 billion.