For years, Sharjah’s commercial real estate sector played second fiddle to Dubai’s more dynamic office market. Following the 2008 global financial crisis, the emirate’s rental rates stagnated and occupancy levels often hovered below 50%. But that narrative is changing—and fast.
Sharjah’s Real Estate is Gaining Momentum
Today, Sharjah’s office market is undergoing a transformation. Driven by a combination of economic shifts, competitive pricing, and new developments, the emirate is stepping into the spotlight. Average occupancy rates have now surpassed 70%, with prime buildings reporting over 90% occupancy. Rents have also seen solid gains—average rates are up by 10% to 15% over the past 18 months, while prime locations have seen rent spikes of more than 40%, thanks to new Grade A developments.
These are more than just short-term fluctuations—they point to a market that’s stabilizing and quickly becoming a serious contender in the UAE’s commercial property landscape.
Why Businesses Are Turning to Sharjah
1. Affordability
One of Sharjah’s biggest advantages is its affordability. Office rents here are roughly 60% lower than in Dubai, a gap that has widened recently. This presents a huge cost-saving opportunity for businesses looking to expand without breaking the bank.
2. Strategic Location
With a large number of Dubai-based employees living in Sharjah, setting up an office in the emirate is a logical move for companies aiming to optimize operations and reduce commute-related inefficiencies.
3. Expanding Economic Activity
The wider economic growth across the Northern Emirates is prompting businesses to establish a real presence in Sharjah. What was once a market dominated by SMEs is now attracting larger corporates—particularly in sectors like finance and oil & gas—many of whom are relocating back-office operations in phased transitions.
Rising Demand Meets Limited Supply
As demand rises, securing office space—especially in premium buildings—is becoming increasingly competitive. Landlords are upgrading their offerings, and new developments are racing to meet demand. Savills alone is advising clients on over 150,000 sq ft of office requirements.
Upcoming Developments to Watch
- Al Thara Project (Phase 1) – Developed by Sharjah Asset Management, this will add 250,000 sq ft of office and retail space, alongside a Voco hotel. Completion is expected by Q2 2025.
- Arada’s Business Park – This ambitious project will bring 4.3 million sq ft of Grade A office space across 40 smart buildings. The first phase, featuring eight office blocks, is set for completion in 2027.
- Marwan Group’s District 11 – With a budget of AED 3.5 billion ($953 million), this mixed-use development will offer 3 million sq ft of office space, along with retail and community-focused amenities.
These large-scale projects reflect long-term confidence in Sharjah’s market—but they also raise a key question: can current demand levels keep up with the incoming supply?
Policy Support and a Positive Outlook
The Sharjah government is taking steps to support the sector’s growth. Infrastructure accounts for 41% of the emirate’s 2025 budget ($11.4 billion), followed by 27% allocated to economic development. Further policy reforms—like allowing long-term leases without upfront tax payments and enforcing restrictions on commercial use of residential properties—could formalize the market and encourage more business-friendly environments.
Final Thoughts
Sharjah’s commercial real estate market is no longer just an alternative to Dubai—it’s emerging as a destination in its own right. For businesses looking to expand and investors eyeing growth opportunities, now is a strategic time to enter the market.
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