Office in Sharjah

🇦🇪 Sharjah office market: central districts, average costs, and transport links to Dubai

Sharjah, the cultural capital of the United Arab Emirates, stands out as a burgeoning hub for businesses and investors. With its thriving economy, rich heritage, and varied demographics, the city presents a unique opportunity for buyers keen on acquiring office space. Whether you are a private buyer seeking a workspace or an investor looking for a lucrative opportunity, the office market in Sharjah is tailored to meet diverse needs.

🌍 Characteristics of Sharjah That Influence Office Purchases

Sharjah’s geography and climate play pivotal roles in shaping its business landscape. Located near the coast of the Arabian Gulf, the city enjoys a subtropical climate, characterized by hot summers and mild winters, creating a pleasant environment for business activities year-round. The city’s strategic location makes it accessible from Dubai and other emirates, enhancing its appeal to international businesses.

The infrastructure in Sharjah is robust, featuring well-planned road networks, public transport systems, and modern amenities. Key business districts such as Al Gulaya’a, Al Majaz, and the Central Business District are particularly characteristic for their accessibility and proximity to essential services. This well-developed infrastructure encourages high demand for office space, contributing to a vibrant real estate market.

Sharjah is also known for its dual appeal as a business and tourist zone. The presence of educational institutions, cultural centers, and recreational facilities enhances the lifestyle of both residents and expatriates. This vibrant socio-economic environment influences the demand for office spaces by attracting professionals from around the globe.

📈 The Economy of Sharjah and Its Impact on the Office Market

Sharjah boasts a diversified economy, driven by sectors such as manufacturing, tourism, and trade. The emirate has seen significant growth in business activities, with over 12,000 registered companies operating within its boundaries. This economic expansion has had a positive impact on the demand for office spaces, creating opportunities for investors and businesses alike.

The tax structure in Sharjah is attractive, as the emirate does not levy personal income tax, facilitating higher profit margins for businesses. Additionally, businesses can take advantage of zero corporate taxes in designated free zones, further enhancing the investment landscape for those looking to buy office space. The liquidity of the office market is promising, characterized by relatively stable rent prices and consistent demand.

Moreover, the influx of tourists, especially with Sharjah’s UNESCO World Heritage sites and cultural events, supports the hospitality segment, creating ancillary demand for office spaces. Investors can benefit from this trend as businesses cater to the growing number of tourists and residents.

💵 Office Prices in Sharjah

Office prices in Sharjah vary considerably based on location, size, and property type. As of current market assessments, the average price for office space in Sharjah ranges from AED 400 to AED 700 per square foot.

Average Office Prices by District:

• Al Majaz: AED 500- AED 700 per sq. ft.
• Al Gulaya’a: AED 450- AED 650 per sq. ft.
• Al Qasimia: AED 400- AED 600 per sq. ft.
• Central Business District: AED 600- AED 800 per sq. ft.

Both new developments and resale office properties are available, with new high-rise buildings offering modern amenities. The demand for office spaces is particularly strong in up-and-coming areas, where investors can find competitive pricing and potential for appreciation.

For those looking into rental yields, the market offers a promising return, averaging between 7% to 10%, depending on the district and management of the property.

📌 Key Districts for Office Purchases in Sharjah

When considering office space in Sharjah, several districts stand out due to their infrastructure, accessibility, and potential for rental demand:

• Al Majaz: This area features waterfront views and is home to many leading businesses, making it highly desirable for new office setups.
• Al Qasimia: Known for its robust commercial activity, this district offers a strategic location near the central bus terminal, attracting local and international businesses.
• Central Business District: This area acts as the heartbeat of Sharjah’s economic activities, boasting high foot traffic and proximity to essential amenities.
• Al Gulaya’a: With its blend of commercial and recreational facilities, Al Gulaya’a provides an attractive setting for businesses focused on both work and leisure.

🏗️ Leading Developers and Projects in Sharjah

Several reputable developers are operating in Sharjah, focusing on high-quality office developments. Notable ones include:

• Emaar Properties: Known for projects like “Emaar Square,” offering flexible office layouts and modern facilities.
• Aldar Properties: Their “Aldar Business Center” features state-of-the-art technology and infrastructure, ideal for enterprises of all sizes.
• Sharjah Investment and Development Authority (Shurooq): Focusing on mixed-use developments, their projects often integrate office spaces with retail and hospitality.

Payment Terms and Infrastructure: Developers often offer competitive installment plans and flexible payment terms tailored for both local and foreign investors. Offices come fitted with essential infrastructures, such as high-speed internet, ample parking, and access to business services.

⚖️ Mortgage and Installment Options for Foreign Buyers in Sharjah

Buying office space in Sharjah is made more accessible through favorable mortgage and installment plans. Banks in the UAE typically offer mortgages to foreign buyers, with rates ranging from 3% to 6%, based on the lender and individual financial circumstances.

• Typical Mortgage Features:
  • Down Payments: Usually set at 20%-30% of the property value for foreigners.
  • Tenure: Loans typically span 15 to 25 years.
  • Institutional Variance: Different banks may have specific eligibility criteria, which could include income verification and credit history checks.

In addition to traditional mortgage options, many developers provide installment payment plans that allow buyers to pay over time, making it easier for both individuals and corporations to invest in office spaces.

📝 The Step-by-Step Process of Buying Office in Sharjah

Navigating the office purchase process in Sharjah involves several essential steps:

1. Selection: Identify the desired location and office specifications that meet your business or investment goals.
2. Reservation: Once you've selected an office, submit a reservation form and a nominal deposit to secure your choice.
3. Due Diligence: Carry out necessary inspections and gather legal documents. It’s advisable to hire a local legal advisor to ensure compliance with UAE regulations.
4. Contract Signing: Sign the purchase agreement, which outlines the payment terms, project details, and deadlines.
5. Payment: Complete the payment according to the agreed schedule, accommodating any mortgage or installment plan.
6. Registration: Register the property with the Sharjah Land Department to formalize ownership, where necessary fees must also be paid.

This process can take anywhere from a few weeks to a couple of months, depending on the efficiency of all parties involved.

📜 Legal Aspects of Owning Office in Sharjah

Owning office space in Sharjah comes with specific legal implications that buyers must understand:

• Rental Rules: Owners can lease their properties but must adhere to local regulations concerning tenant rights and rental agreements.
• Property Taxes: The UAE imposes minimal taxes, generally resulting in lower operational costs for office owners. A slight registration fee may apply during property transfer.
• Procedure Compliance: Buyers are required to register their purchase and adhere to local policies regarding permits and licensing.
• Residence Benefits: While property purchase does not outright grant citizenship, it does offer a residence permit, allowing buyers to reside in the UAE long-term.

💼 Purpose and Potential of Buying Office in Sharjah

Investing in office space in Sharjah is advantageous for various purposes:

• Relocation or Second Home Office: For businesses looking to expand operations or establish a second base.
• Rental Investment: With the city’s growing popularity, buying office space serves as a lucrative rental investment.
• Family or Children’s Business Setup: Accommodating family businesses or providing a workspace for entrepreneurial ventures.
• Premium Segment: Investors seeking premium office space can find opportunities in high-demand areas known for their elite commercial developments.

Sharjah’s evolving landscape and appealing investment environment position it as an attractive locale for office purchases. With a keen understanding of the market dynamics and specific area advantages, stakeholders can paint a bright future in the realm of commercial real estate in this vibrant city.