How to buy and rent property in Sharjah

Apr 21, 2017

How to buy and rent property in Sharjah

A guide for foreigners and expats purchasing or leasing real estate in Sharjah such as Tilal City and Al Thuriah.

Image by Sam Nabi via Flickr

Very important information to read:

This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...

Sharjah, located next to Dubai, is the third largest city in the UAE. It is considered to be the cultural capital of the UAE with its museums, commercial centres, restored houses and modern buildings. It is an exciting, lively city.

Unlike the other emirates, according to Gulf News, Sharjah will not give residency visas to foreigners, but instead give an ‘investment contract’ which will allow the buyer to ‘invest’ in the property for 99 years. With many new projects announced since it opened up the market for non-GCC nationals, Sharjah has experienced huge development. These include Sharjah Waterfront City which will be home to 200,000 people with 10 natural islands connected by bridges and canals. It will have 200 mixed-use towers, 95 apartment buildings with luxury apartments, hotels and serviced apartments and 1100 villas plus a shopping mall, entertainment centres, mosques, schools, banks, cafes and restaurants.

Tilal City is another large development. According to Cluttons, infrastructure is near completion with over 1800 plots for villas, apartments, commercial, retail and leisure use.

Next to Sahara Centre Mall, the development of Al Thuriah has six towers, five of which are sold and construction for the sixth will be completed in 2019. It is located between Sharjah and Dubai, 7 minutes away from Dubai International Airport, and is close to 3 shopping malls, 3 hospitals, over 10 schools, 2 universities and 2 parks.

The Department of Real Estate Registration in the Emirate of Sharjah says its mission is to “provide real estate registration services and registration, documentation of dealings and real estate valuation, and to set rules and regulations, in order to protect the rights of property owners, within a framework of transparency, excellency and integration.” Find more information about buying real estate in Sharjah, fees, mortgage calculators and more here.

Hamad Salem Al Mazrooa, director general of the Sharjah Real Estate Registration Department said the only restriction is that buyers “must have a residence visa at the time of purchase. If for some reason after the purchase their residence visa expires, they are free to hold the property, lease or sell it as they wish."

Many investors buying property in Sharjah intend to rent it out and according to Money Doctor, there are Central Bank lending guidelines. Under the rules, expats buying property valued at under US$1,360,000 will need a minimum deposit of 25 percent, while a 35 percent down payment is required for properties over US$1,360,000. The property must be registered with Sharjah Real Estate Registration Department, along with the tenancy contract. Most property owners in the UAE use real estate agents to manage their properties.

Renting
According to Emirates 24/7, tenants need to pay to register a rental agreement, which costs 2 percent of the total value of the annual rent contract or a minimum of US$82, whichever is higher. All contracts have gone online to make the process easier for both tenants and landlords. These contracts are organised by the landlord and the tenant only has to pay the appropriate fees. Sharjah City Municipality provides a service to the public to allow them get the details of their tenancy contracts through the website.

Residency visas, requirements and applications can be found here.

Real Estate Agents in Sharjah can be found here.

Sources for this article include: