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SHARJAH / WAM
The real estate sector in the emirate of Sharjah has recorded a 10 percent growth in the real estate transactions concluded in the third quarter of 2020 as compared to the same period last year. Figures show that up to 14,854 real estate transactions, worth AED4.6 billion, were sealed over Q-3 this year.
The sales transactions recorded in the third quarter covered 14.6 million square feet, as per the latest quarterly report of the areas and cities of the emirate issued by the Sharjah Real Estate Registration Department, SRERD.
Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Department, said the reported growth is mainly attributed to the series of stimulus decisions recently taken by the Government of Sharjah to contain the effects of the COVID-19 global pandemic.
“The support given to all government and private entities, business and individual sectors, included an extended three-month exemption of the annual license renewal fees for economic establishments, a discount of 50 percent on delayed fines and violations for economic establishments, and a discount of 50 percent on the license fees for industrial establishments to help boost the contribution of the industrial sector to the gross domestic product.”
A further discount was also granted on the insurance and supply fees of electricity, water and natural gas services for the owners of economic, commercial and industrial establishments who were permitted to pay due fees in instalments over two years to reduce their financial burdens, Al Shamsi elaborated.
Al Shamsi said the decisions, covering all aspects of institutional and community work, proves that Sharjah is once again a stimulating and supportive environment for business and foreign direct investments. “This enhances the regional leadership and global position of the emirate which secures an appropriate environment for investors and customers locally and abroad.”
Reducing the fees on the sale value from 4 percent to 2 percent for non-GCC purchasers until March 31, 2020 was also a major decision, he underlined.
“This new decision, along with the latest stimulus package, have led to a rapid recovery of the real estate sector here that it continues to play a pivotal role in the progress and prosperity of the emirate.”
Completing previous projects and launching new ones, like the development projects recently accomplished in the Eastern Region sent an important message to the investors about the stability of the economic situation in the emirate despite the pandemic, Al Shamsi said. “The emirate was not affected by the global crisis thanks to the insightful vision of the prudent leadership and its passion to keep work as per set plans.”
Main branch accounts for 95.7 percent of total investments value
Al Shamsi said the main branch accounted for 95.7 percent of the total real estate investments value recorded in the third quarter of 2020. “These are compared to 4.3 percent for other branches: 1.4 percent for the Central Region branch, 1.6 percent for Khor Fakkan and Dibba Al Hisn branch, and 1.3 percent for Kalba branch.”
Transaction Classification
The property statement transactions topped by 8,743 transactions, followed by 3,539 property title transactions, 1,675 initial sale transactions, 676 mortgage transactions, and 221 valuation transactions.