A new Law concerning property ownership is passed in the Emirate of Sharjah. Foreigners are now able to purchase and sell property although only on a leasehold of no more than 100 years.
Expatriates from any country can now invest in the Emirate’s real estate market provided they hold a UAE Residence Permit.
The main reason behind this change in the Property Law was the demand for dwellings and property generally from people working in Dubai and not able to afford the current related costs of purchase and / or rent. Commuting to work is therefore more felt economical and buying in the neighbouring Sharjah for a lower price believed to be far more attractive.
However, certain restrictions are placed so as to allow investment in certain areas only. These are for instance at the edge of the city centre. More is promised for the near future.”The only restriction is that they 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.”
The first new development to be offered is Tilal City, a 25,000,000 ft² dwellings made of town houses and condominium estates on Emirates Road will be developed by Sharjah Asset Management and Eskan Real Estate Development. The project comprises an urban land subdivision of some 1,800 land plots with directives aimed at creating cluster cities outside the centre, in a bid to reduce traffic.
“There are over 220 nationalities here in Sharjah. But we think the biggest demand will come from Arab and Asian Muslims living here who want their families to live in a stable and safe environment,” Hamad Salem Al Mazrooa, director general of the Sharjah Real Estate Registration Department commented, adding: “the only restriction is that they must have a valid ‘RP’ at the time of purchase. If for some reason after the purchase this came to expire, they are free to hold the property, lease or sell it as they wish.”