Shariah witnesses a rapid rise in rents due to rising demand for accommodation in Dubai

In total rental activity, it comprises more than 368,500 leases registered in 2025, accounting for an annual growth of 4.4%

The residential rent market in Sharjah is undergoing one of its most robust phases of growth in recent years, driven by a growing population, migration from Dubai in search of more affordable accommodation, and a solid pipeline of infrastructure and housing development projects.

In its latest report, Cavendish Maxwell reveals that 290,000 residential rental agreements have been recorded in Sharjah, up from 278,000 last year, clearly indicating strong housing demand and establishing the emirate’s position as a key destination for workers in the northern Emirates and Dubai.

Families constituted 86 per cent of all residential rental contracts, indicating a preference for longer stays. Singles accounted for 10 per cent of contracts, while staff accommodations made up the remaining 4 per cent.

The total number of rental agreements exceeded 368,500 in 2025, reflecting a year-on-year increase of 4.4 per cent. Ali Siddiqui, research manager at Cavendish Maxwell, said: “Sharjah’s appeal is growing stronger as residents seek value-for-money housing that does not compromise on connectivity to Dubai and other emirates.”

According to Siddiqui, foreign ownership regulations, infrastructure development, and a lower cost of living in Sharjah are responsible for the high demand for real estate in the emirate.

Affordability remains one of Sharjah’s key strengths. The report indicates that renting a home in Sharjah is typically 20 per cent to 30 per cent cheaper than comparable properties in Dubai, attracting a growing number of residents who continue to work in the neighbouring emirate.

This trend has gained momentum over the past couple of years, as rising residential rents in Dubai — driven by population growth and increased demand — have pushed more residents toward Sharjah.

However, this influx has placed considerable pressure on Sharjah’s housing market, with rental prices rising sharply in certain neighbourhoods. Market data shows that rents in high-demand areas such as Muwaileh and Aljada have increased by between 33 per cent and 56 per cent annually.

Even with these increases, Sharjah remains comparatively affordable relative to Dubai, ensuring that tenant demand stays healthy. To protect residents from steep rent hikes, Sharjah has one of the most tenant-friendly rental regulatory frameworks in the UAE.

The emirate’s laws require rents to remain stable for three years from the date a lease agreement is signed. During this period, landlords cannot raise rents or refuse lease renewals unless tenants breach their obligations.

After the initial three-year period, rent increases are permitted only once every two years and must be reasonable and in line with market value. No renewal charges are applicable, and all rental agreements must be registered at the municipal level. Real estate advisers note that such regulations have helped maintain market stability in Sharjah despite rising rental prices.

Tenant preferences have also shifted. As rents rise in residential areas, cost-conscious tenants are increasingly opting for smaller units such as studios and one-bedroom apartments. At the same time, demand is growing for professionally managed communities offering a range of amenities.

The residential sector is expected to benefit from a considerable development pipeline. Approximately 2,600 homes were delivered in 2025, of which 80 per cent were apartments. A further 1,100 apartments were delivered in the first quarter of 2026.

Looking ahead, around 33,700 home deliveries are projected by 2030, comprising 24,800 apartments and 9,900 villas and townhouses. Significant projects from prominent developers such as Arada, Alef Group, Beeah Group, and Eagle Hills are expected to expand housing options and ease rental pressures in the medium term.

Infrastructure investment is also expected to boost residential demand. Projects including the Etihad Rail, road improvements, and the expansion of Sharjah International Airport have enhanced connectivity and reduced travel time, making the emirate more attractive for those working across the UAE.

Demographic trends further support a positive outlook. Sharjah’s population is projected to grow from 1.98 million to over 2.1 million by 2030, with expatriates comprising more than 85 per cent of residents.

With strong underlying demand, a growing population, tenant-friendly legislation, and a substantial pipeline of new housing units, analysts expect Sharjah’s rental market to remain robust. While new supply may ease some pricing pressure, the emirate’s affordability and family-friendly character are likely to sustain demand well into the future.