Property Ownership for Foreigners in Sharjah

Sharjah is a lively and artsy destination in the UAE. Over the years, property ownership has been very limited. However, the situation has changed, and it has become legal for foreigners to own property in such an active city. This has created wonderful prospects for people and their families making their decisions to create solid financial security and a comfortable existence.

Sharjah's New Property Laws

The Sharjah Executive Council (SEC), led by Dr Sheikh Sultan bin Muhammad bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, has greatly transformed laws regulating ownership of properties in the emirate. The key changes include:

1. Freehold Ownership for All Nationalities: Expats can now own residential property freeholds in certain areas. This means they shall enjoy full ownership rights as UAE nationals practice it. It succeeded the 2014 regulation that passed the 100-year leasehold title and the 2018 regulation that extended freehold in some regions.
2. Usufruct Rights: When freehold ownership is impossible, foreigners can obtain usufruct rights for up to 100 years. This gives the holder the liberty to enjoy or benefit from the property for a decent period.
3. Designated Freehold Zones: Several sectors have been granted Free Trade Zone status, thus permitting full foreign ownership:

• Sharjah Media City
• Hamriyah Free Zone
• Sharjah Airport International Free Zone Commercial licence
• Sharjah Publishing City
• Sharjah Research Technology and Innovation Park

Forms of Property Acquisition for Expatriates

Expats in Sharjah have two primary ways to own property:

1. 100-Year Leasehold: This option gives expats a lease holding the property for 100 years renewable. It offers extended duration and is available throughout Sharjah.
2. Freehold Ownership: This entitles foreigners to full ownership rights anywhere within the zones provided without any timeline. It is most suitable for long-term investment and gives similar privileges to UAE nationals.

Favourable Locations for Foreigners to Invest in Real Estate

In addition to the freehold zones mentioned earlier, here are some popular areas where expats are buying property in Sharjah:

1. Aljada: A residential neighbourhood containing different housing types, such as apartments, townhouses, and villas.
2. Maryam Island: An upscale residential and commercial project with units along the waterfront.
3. Tilal City: A commercial and residential development featuring building plots for sale, where foreigners, namely non-Arabs, are allowed to purchase freehold land.
4. Muwaileh: A preferred residence, especially for families and students, due to the schools and easy access to Sharjah University City.

Advantages of Choosing the Sharjah Property Market

Sharjah offers exceptional value when investing in the UAE property market. Here's a closer look at the advantages:

1. Sharjah’s property market brings high returns on investment.
2. Rental costs are tax-free if you lease your property.
3. Like any other UAE emirate, Sharjah's property rates are cheaper than Dubai and Abu Dhabi.
4. Rental demand in Sharjah, especially in emerging neighbourhoods such as Aljada and Muwaileh, is high, allowing renters to achieve excellent rental returns.
5. Convenient access to business and leisure facilities is characteristic of Sharjah's proximity to Dubai.
6. Sharjah has good schools, lovely parks, and well-developed family-oriented societies, which are basic family requirements.
7. Sharjah offers a rich cultural landscape and a high quality of life.  
8. The surge in property activity in Sharjah shows that the emirate remains a stable long-term investment market.

Popular Investment Locations

Now that you understand the benefits, let's explore some of the most popular locations where ex-pats are buying property in Sharjah:

Al Khan: Exclusive sea view villas near the beach with easy access to the two international airports of Dubai and Sharjah. On average, the apartments are priced from AED 398,000 for a studio to AED 905,000 for a two-bedroom apartment.

Al Majaz: This district offers a variety of attractions for health-conscious tourists, including a bustling city centre, a scenic lagoon, lush parks, and family-friendly restaurants. One-bedroom apartments are priced at AED 342,000 for those seeking accommodation, while two-bedroom options average AED 602,000.

Muwaileh: It is accessible to most high ways with wise schools and a family-like environment. Average apartment prices range from AED 433,000 for a studio apartment to AED 1,081,000 for a two-bedroom apartment.

Al Nahda: It is a perfect location for commuters. The average cost is AED 180,000 to buy a studio and AED 542,000 to rent a two-bedroom.

Process of Acquiring Property in Sharjah

Following are the steps for expatriates to acquire a property:

Step 1: Choose a property in a freehold or leasehold area.

Step 2: Select a developer you know can give you quality projects.

Step 3: Seek advice from a real estate agent having a proper understanding of laws in the UAE.

Step 4: Consider financing with the UAE banks or buying directly with cash.

Step 5: Contact the Sharjah Real Estate Registration Department to acquire the property's title deed.

Conclusion

Due to ongoing changes in the market, Sharjah’s real estate market offers good prospects for expats. It is financially secure, has long-term leases, and is an active market, making Sharjah an attractive investment destination. Whether purchasing a personal residence, an investment property for rent or sale, or a holiday home, the multicultural society and prospect of living in Sharjah are ideal.

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