AED 12.2 bn. worth of real estate transactions in 1st half of 2021
July 26, 2021 / 1:18 PM
Sharjah24: According to the statistical report of the first half of 2021 regarding the real estate transactions issued by Sharjah Real Estate Registration Department (SRED) , Sharjah's real estate sector has achieved a total value of transactions worth AED 12.2 billion with a total number of 40,346 transactions, marking a 40.5% increase in total transactions for the first half of this year compared to the same period last year.
Moreover, the total area covered in sales transactions was 75.2 million square feet. The results showed an increase in the total value of transactions by 96.1% in comparison to the same period in 2020, and that is due to the return of business after the relative decline of the "Covid-19" pandemic. The economic facilitations and incentives launched by the Executive Board in November 2020 increased investors’ confidence in the real estate market in Sharjah. In addition, February has witnessed a major real estate acquisition worth AED 690 million between real estate developers operating in Sharjah for establishing a luxurious residential project. This acquisition is a sign on the recovery of the real estate sector in Sharjah.
As for the number of transactions, and despite the continuing pandemic, the report shows a remarkable increase in the department’s total transactions during the first half of 2021, compared to the same period last year. The department has made great efforts in providing all its transactions, while considering the safety and security measures for employees and customers alike.
Furthermore, the Department has provided online services for some transactions, and a pre-appointment reservation system was implemented to complete the transactions that require the presence of customers, taking into account the applicable preventive and precautionary measures.
His Excellency Abdulaziz Ahmed Al Shamsi, General Manager of Sharjah Real Estate Registration Department, said: The real estate sector has begun to recover and overcome the economic effects of the pandemic, thanks to the emirate's willingness to attract more investments.
Al Shamsi also explained that the Department seeks to enhance a competitive business environment, in order to achieve a number of objectives aimed at encouraging investment in Sharjah, and to attract new investors from different countries of the world. This will contribute to revitalizing the local economy, advancing the wheel of economic development, and enhancing the emirate’s position on the map of local, regional, and global investment.
Moreover, His Excellency emphasised the department's willingness to continue improving the business environment, by facilitating and simplifying the practice of business in the emirate. Furthermore, the department is striving to facilitate the barriers faced by investors, by providing them with more incentives, and implementing initiatives that increase the chances of the success of their investments and support its sustainable growth and expansion.
Transactions’ Classification The transactions of ownership certificates ranked first with a total of 25,601, followed by the ownership deed transactions with a total 10,444, subsequently the transactions of initial sales contract with 2,289. Moreover, the mortgage transactions recorded 1,457, and the valuation transactions with a total of 503 transactions, while the broker's card transactions came last with only 52 transactions. Mortgage Transactions During the first half of this year, the total mortgage transactions in Sharjah amounted to 1,457 transactions, valued at AED 5 billion, with a change of 25% compared to the same period last year. Transactions Sales as per region The number of sales transactions in the various regions of the emirate of Sharjah during the first half of 2021 has reached 2,863 transactions. The largest share was acquired by Sharjah city with 2,546 transactions, covered in 102 areas with a value of AED 4.9 billion. The leading areas were Al Khan, Al Rigaibah, Hoshi, Al Nahda, and Al Majaz 3, with 1,435 transactions that accounted for 56.4% of all the transactions in Sharjah. As an example, the number of sales transactions in the Al Khan has reached 398 transactions, accounting for 15.6% of the total number of transactions conducted in the city. As for the Central Region, the number of sales transactions reached 94 transactions, which took place in 28 different areas valued at AED 82.3 million. These transactions were concentrated in Tayybah 2 and Al Malha, and they were accounted for 29.8% of the total sales transactions by 28 transactions. While the other 66 sales transactions were distributed in other 26 areas.
Regarding the city of Khor Fakkan, 77 transactions were carried out in 13 areas of the city with a value of AED 50.4 million. Al Haray industrial area, Al Haray commercial area, and Hayawa area accounted for 39% of the total sales transactions in the city of Khor Fakkan by 30 transactions, while the remaining 47 sales transactions were distributed in 10 areas around Khor Fakkan. In Kalba city, the number of transactions reached 140 in 20 areas with a value of AED 76.1 million. The sales transactions were concentrated in the industrial and Al Saaf areas with 84 transactions, accounting for 60% of the city's total sales transactions. The remaining 56 sales transactions were distributed in 18 other areas. Finally, the number of sales transactions in the city of Dibba AlHisn were 6 transactions worth up to AED 4.1 million. These transactions were distributed in three areas; the most traded area was Al-Shamali Neighborhood by 3 transactions, which accounted for 50% of the total number of sales transactions in the city.
Usufruct Transactions The number of usufruct transactions in Sharjah for the first half of 2021 has reached 133 transactions with a value of more than AED 205 million, led by Muwailih Commercial area with 43 transactions, and the area of Tilal with 35 transactions, followed by al-Nahda area with 32 transactions.
Residential transactions in the lead When classifying sales transactions by property type, the residential transactions accounted for the largest share, with 49.6% of the total number of transactions. The commercial transactions come next by 37.1%, followed by the industrial transactions by 11.1%, while the agricultural transactions came last with only 2.2%. In terms of the number of sales transactions by property type; apartment transactions accounted for the largest share, with 711 transactions, followed by residential land with 634 transactions, and finally residential built-in land with 559 transactions.
Investors from 63 nationalities
Regarding investors, 63 nationalities from around the world invested in Sharjah during the first half of 2021, with GCC citizens, including UAE citizens, investing AED 9.7 billion with 10,787 properties. As for the investment of other countries, including Arab countries, it amounted to AED 2.5 billion with 1,961 properties.