Savills research points to resilient demand, stronger mortgage activity and a growing pipeline of waterfront apartments and mixed-use developments

• Residential sales reached 13,081 in H1 2026, up 113% from 6,140 in H1 2025.
• Q2 recorded 5,357 sales – 30.5% lower quarter-on-quarter but 58.6% higher year-on-year.
• Mortgage registrations rose to 1,555, increasing 51% quarter-on-quarter and 30% year-on-year.
• Apartment asking prices averaged AED 1,010 per sq ft, while villa asking prices averaged AED 970 per sq ft.

Residential sale transactions totalled 5,357 during Q2, representing a 30.5% decline from Q1 but remaining 58.6% above Q2 2025. Across the first half of the year, sales more than doubled to 13,081, from 6,140 in H1 2025. Savills said the quarterly moderation reflected Sharjah’s typical seasonal pattern after Q1 benefited from major project launches, the ACRES exhibition and registration fee incentives, rather than a deterioration in underlying demand.

Financing activity strengthened despite the lower quarterly sales total. Mortgage registrations reached 1,555 in Q2, rising 51% quarter-on-quarter and 30% year-on-year, indicating sustained confidence among end-users and investors.

Shane Breen, Head of Sharjah & Northern Emirates at Savills Middle East said, “The Q2 figures show a market moving into a more sustainable phase after an exceptional first quarter. The year-on-year growth in sales and the continued rise in mortgage registrations point to resilient demand, while buyers are becoming more selective on quality, location and value. Sharjah is also seeing a meaningful broadening of its residential offer, with waterfront apartments and mixed-use communities complementing its established villa-led market”

PRICING NORMALISES AS BUYER CHOICE EXPANDS 

Pricing trends diverged across the apartment and villa segments during Q2. Average apartment asking prices moderated by 2.9% quarter-on-quarter to approximately AED 1,010 per sq ft, 8.2% below Q2 2025. Savills attributed the softer pricing to an expanding pipeline of apartment developments, particularly within waterfront and mixed-use communities, which has increased buyer choice and competition. Demand nevertheless remained healthy for well-located projects, especially along the Al Khan-Al Mamzar waterfront corridor.

Villa asking prices eased by 2.0% quarter-on-quarter to approximately AED 970 per sq ft but remained 5.4% above Q2 2025. Sustained demand across established master-planned communities, including Masaar, Al Zahia, Hayyan and Sharjah Sustainable City, continued to support the segment despite the gradual introduction of new supply.

WATERFRONT APARTMENTS RESHAPE THE PIPELINE

Sharjah’s residential pipeline is gradually shifting from the villa-led development cycle seen in 2024 and 2025 towards a more balanced mix of apartments and master-planned communities. The quarter’s standout launch was Linar by Alef Group, an AED 4 billion waterfront development comprising approximately 2,620 apartments across six towers. Other schemes progressed during the quarter, including Qasba Downtown and Terhab, while projects along the Al Khan-Al Mamzar waterfront corridor reinforced the growing prominence of waterfront residential communities.

Villas and townhouses remain a significant part of future supply, with developments including Masaar 3, Hayyan, Al Tay Hills, Sustainable City 2, Sukoon and Khalid Bin Sultan City. Upcoming completions include Saro, the final phase of Arada’s original Masaar masterplan with 597 homes, and Azalea, the fourth phase of Masaar with 566 homes.

Official data from the Sharjah Real Estate Registration Department showed that the emirate’s wider real estate market maintained positive momentum in H1 2026. Total transaction values reached AED 29.5 billion, up 9.3% year-on-year, while the total number of real estate transactions increased by 23.7% to 59,460. Investors from 121 nationalities were active in the market, alongside the registration of 11 new real estate projects.

OUTLOOK

Savills expects additional residential launches from Q3 onwards across both apartments and villas. Continued freehold expansion, growing international investor participation and Sharjah’s competitive pricing relative to neighbouring emirates are expected to support demand through the remainder of 2026. As competition intensifies, developers are likely to continue using flexible payment plans and targeted sales incentives to differentiate projects and maintain momentum.

About Savills Middle East:

Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.

Source: Zawya