Sharjah’s rental market sees significant growth as H1 real estate transactions hit AED 29.5 billion

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Sharjah’s rental market is experiencing notable growth, with average asking rents for both apartments and villas rising across the emirate’s most sought-after locations. This trend coincides with a robust performance in the real estate sector, as total transactions reached approximately AED 29.5 billion ($8 billion) in the first half of 2026, marking a 9.3 percent increase from the previous year, according to data from the Sharjah Real Estate Registration Department.

New insights from Bayut reveal that all 15 of the most-searched areas for apartment rentals in Sharjah recorded year-on-year increases in average asking rents. The same pattern is evident in the villa rental market, indicating a broad-based demand that extends beyond a few select neighborhoods. The average rental rate across Sharjah stands at AED 41.4 per square foot as of August 2026, reflecting a 1.8 percent rise compared to the previous year.

Apartment Demand Broadens

Muwaileh Commercial emerged as the top location for apartment rentals, with average annual asking rents climbing to AED 40,800, an increase of 8.2 percent from AED 37,709 in 2025. Al Majaz and Al Nahda followed, with average rents of AED 53,471 and AED 46,896, respectively. Other notable areas attracting tenant interest include Al Taawun, Al Khan, and Al Zahia, showcasing a diverse demand across both established and newer developments.

In Al Taawun, average rents rose by 5.3 percent to AED 49,600, while Al Khan saw a 3.6 percent increase to AED 58,925. Interestingly, Al Mamzar and Al Nabba recorded the highest percentage increases at 12.5 percent, despite their average rents differing significantly at AED 68,198 and AED 26,535, respectively. This disparity illustrates the varied rental landscape in Sharjah, where tenants can find different options based on their budget and preferred location.

Villa Growth Accelerates

The villa rental segment shows even greater variability, with Tilal City ranking as the most-searched location, where average annual rents reached AED 225,515, reflecting a 13.2 percent increase year-on-year. Other leading villa rental areas include Hoshi and Al Rahmaniya, with average rents of AED 159,935 and AED 142,983, respectively. Notably, Al Mansoura experienced the largest increase among villa communities, with rents surging 30.6 percent to AED 114,284.

This growth in the villa market is not uniform, as some more affordable communities are witnessing sharper percentage increases, while higher-value areas like Tilal City command significantly larger rents. This dynamic supports Sharjah’s role as a diverse rental market catering to various household sizes and budgets.

Transactions Remain Strong

The increase in rental values aligns with ongoing momentum in Sharjah’s broader property market. The Sharjah Real Estate Registration Department reported that 59,460 transactions were completed in the first half of 2026, a year-on-year growth of 23.7 percent. Residential properties accounted for 82.2 percent of total sales transactions, underscoring the importance of housing in the emirate’s real estate landscape.

Muwaileh Commercial led transaction activity with 2,385 transactions valued at AED 2.8 billion, followed by Al Belaida and Al Khan, which recorded 2,171 and 1,077 transactions, respectively. While the rental and transaction data reflect different aspects of the market, they collectively indicate a vibrant residential sector in Sharjah.

Bayut’s analysis highlights the wide range of rental prices available across different communities, with the emirate-wide rental rate of AED 41.4 per square foot masking significant variations at the neighborhood level. For instance, apartment rents range from AED 26,535 in Al Nabba to AED 68,198 in Al Mamzar, while villa rents vary from below AED 70,000 to over AED 225,000 in Tilal City.

Fibha Ahmed, Vice President of Property Sales at Bayut, emphasized that Sharjah continues to offer diverse options for tenants. “Our latest data makes one thing clear: Sharjah continues to give tenants choice. Whether you’re looking for a spacious family villa or a compact apartment, there are options for different budgets and stages of life,” Ahmed stated.

As the rental market evolves, the combination of rising rents and strong transaction activity suggests that Sharjah remains an attractive destination for both tenants and investors alike. For further insights into the rental trends in Sharjah, refer to Economy Middle East.

For more real estate coverage, visit our Real Estate section.

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