Sharjah, RAK developers bid to clear existing stock

dubai - Developers take calculated steps with their launches to prevent an oversupply

Sharjah's supply pipeline is looking robust, although there have been no significant launches at Cityscape Global 2018. Developers are taking calculated steps with their launches to prevent an oversupply. Developers such as Arada, Alef and Tilal Properties are tapping the pent-up demand.

Opening of the real estate market to UAE residents two years ago was a watershed moment for Sharjah. It attracted pent-up domestic demand from long-term residents who were eager to put down roots in Sharjah, or those who had been priced out of Dubai or Abu Dhabi.

Demand for property in Sharjah has always been interlinked with Dubai, with residents responding to the price increases and decreases in Dubai by moving into and out of the northern emirate.

With developers such as Arada and Eagles Hills entering the market, Sharjah's profile as a real estate destination has improved. UAE and Arab nationals have been leading the way in snapping up off-plan properties and plots in Sharjah. These are available at a significant discount when compared to Dubai.

For instance, Tilal City offers an opportunity to purchase or lease land and build property within Sharjah. A flagship project of Tilal Properties, Tilal City spans 25 million square feet.

It is the first master-planned community in Sharjah with no service charges and will be maintained by the Sharjah Municipality. The plots are mostly being purchased by Emiratis, Arabs from the GCC and Asians.

Four zones have been launched so far, of which zone C was designated for villas while zones B and D are plots designated for G+3, G+4 and G+5 buildings.

At Cityscape, the group is offering a five per cent discount on sales, flexible payment plans (10 per cent down payment, pay quarterly within 24 to 36 months) and land finance arrangement with the Sharjah Islamic Bank. The plots are freehold for Arabs and 100-year leasehold renewable for non-Arabs.

Meanwhile, Arada launched Sarab Community, a luxury project, in its Dh24 billion master development, Arada, featuring 109 townhouses and semi-detached villas. "The starting price at Sarab is Dh1.2 million and goes up to Dh1.6 million. We are not doing extended post-completion payment plans," said Ahmed AlKhoshaibi, CEO of Arada.

Arada also unveiled the design of Arada's Central Hub, a 1.9 million sqft space designed by Zaha Hadid Architects. Divided into three phases, it will feature extreme sports, a food truck park, outdoor cineplex, movie theatre, kids' area, educational and entertainment area and an experiential sales centre (ready by Q1 2019).

"We are creating a new downtown for Sharjah," said Prince Khaled bin Alwaleed bin Talal, vice-chairman of Arada.

Speaking of the Sharjah real estate market sentiment, AlKhoshaibi said: "Sharjah property has been very resilient. Prices do not fluctuate like other emirates. We are charging the same price as the rest of Sharjah. There is no premium at Aljada. It's affordable."

The Alef Group is offering price discounts, on-the-spot bank approval and a monthly payment plan at the Al Mamsha project in Sharjah's Al Juraina area. The price of a studio at Cityscape is Dh290,000. The developer has sold 15 buildings so far. The price starts from Dh300,000 (studio) and goes up to Dh1.5 million for a three-bed duplex.

Issa Ataya, managing director, Alef Group, said: "Ninety per cent of our buyers are based in Sharjah. There is huge pent-up demand in Sharjah."

RAK Properties is showcasing its existing inventory at the property exhibition. These include Marbella and Angel Bay on Hayat Island, Bay Residences and Gateway on Raha Island.

"RAK property is in a correction phase, like rest of the UAE. Properties within a community, such as Mina Al Arab, are in demand. At Cityscape, we are offering extended payment plans and waiving community charges for five years for some existing stock. The title deed registration fee is also waived for some units," said Samuel Dean Sidiqi, CEO, RAK Properties.

- deepthi@khaleejtimes.com