Value of property deals in Sharjah jumps 10% in Q3 to Dh4.6bn

Stimulus measures including a halving of sales fees had a positive impact on transactions

Sharjah recorded real estate transactions worth Dh4.6 billion ($1.25bn) in the third quarter of 2020. Courtesy Asteco
Beta V.1.0 - Powered by automated translation

Sharjah recorded property transactions worth Dh4.6 billion ($1.25bn) in the third quarter of 2020, up 10 per cent compared to the same period last year on the back of stimulus measures implemented to support the economy in the wake of Covid-19.

The total number of transactions during the period was 14,854, according to a statement from the emirate’s Real Estate Registration Department, which was slightly below the 14,974 reported in the corresponding quarter last year.

Sharjah has rolled out a number of stimulus measures to support the economy, most notably a reduction in sales fees on properties to 2 per cent, from 4 per cent, for non-GCC nationals until March 31 next year. The government has extended exemptions on annual licence renewal fees for economic establishments and provided a 50 per cent discount on delayed fines and violations. A discount of 50 per cent on licence fees was also granted to industrial establishments, while supply fees for electricity, water and natural gas have also been cut.

“This new decision (the reduction of sales fees), along with the latest stimulus package, has led to a rapid recovery of the real estate sector," Abdul Aziz Ahmed Al Shamsi, director-general of the Sharjah Real Estate Registration Department, said.

The property market "continues to play a pivotal role in the progress and prosperity of the emirate”, he added.

Completing previous projects and launching new ones, like development projects recently accomplished in the emirate's Eastern Region, sends an important message to investors about the stability of the economic situation in Sharjah despite the pandemic, Mr Al Shamsi added.

Almost 75 per cent of the transactions completed during the quarter were residential deals, while 11 per cent were commercial, 9.9 per cent were industrial and 4.5 per cent agricultural. Investment continued to be led by GCC nationals, who were responsible for Dh3.5bn of the deals, with the remaining Dh1.1bn from other nationalities. In total, 47 different nationals invested in Sharjah property during the period.

Mortgage deals made up Dh1.9bn worth of the transactions completed during the quarter, the department said.