Tourism Boom and Its Impact on the Real Estate Market in Sharjah | Foxhills


The Emirate of Sharjah has been actively establishing itself in recent years as a sustainable tourist destination, particularly in the eco-tourism sector. They're continuing down this path, as evidenced by their recent attendance at the Arabian Travel Market (ATM) 2023. Sharjah's tourism industry has been booming, as has the city's real estate market. Let’s find out how the tourism boom has contributed to the city's expanding real estate sector in Sharjah.

Sharjah Tourism Boom

A 16% increase in hotel guests and a 66% occupancy rate may be attributed to Sharjah's tourism activities. Visitors from the Gulf Cooperation Council countries (GCC) increased by 161 percent in the emirate in 2022 compared to the previous year. 

This growth has been largely fueled by organizations like the Sharjah Commerce and Tourism Development Authority (SCTDA), the Sharjah International Airport, and the Sharjah Environment and Protected Areas Authority (EPAA). Sharjah aspires to be a leading sustainable eco-tourism destination, drawing environmentally conscientious travelers.

The Real Estate Market's Enduring Strength

At the same time, the Sharjah real estate market had a 19.2% growth in trade value to AED13.4 billion in H1 2023. Most recently closed deals have involved residential properties, including single-family homes and multi-family dwellings. 

In the first six months of 2023, there were a total of 40,843 transactions recorded by the Sharjah Real Estate Registration Department. These staggering numbers show a market ready for investment and expansion, supported by buyers from 88 countries.

Impact of the Tourism Boom on the Real Estate Industry in Sharjah 

So, how does the tourism boom impact the real estate market? Here are a few key ways:

  • Increased Demand for Short-Term Rentals

The need for somewhere to stay is rising with the tourism industry. This includes everything from five-star hotels to inexpensive short-stay flats, providing excellent prospects for real estate investors.

  • Infrastructural Developments

Infrastructure investments prompted by increased tourists are good news for the property market. Property values rise, and new businesses are drawn to areas with new roads, airports, and public amenities.

  • Foreign Investments

The emirate's popularity as a tourist destination generates publicity that helps other industries. Investors from other countries may be enticed to put money into the real estate market of an emirate if the tourism sector there is prospering.

  • Diversification in Property Types

Different types of real estate properties rise to significance as tourism expands. A wide range of potential investments benefit real estate investors, from hotels and resorts to eco-lodges and service apartments.

Challenges and Opportunities

The real estate industry has benefited from the uptick in tourism, but there are still obstacles to overcome, such as market saturation and regulatory compliance. However, due to the government's active engagement, the real estate and tourism industries will continue to adapt and flourish sustainably.

 

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