Sharjah’s commercial real estate sector recorded strong gains during the first quarter of 2026, driven by rising demand for quality office space, sustained industrial activity, and growing investor confidence, according to global real estate advisor Savills.
The emirate is evolving from a cost-driven alternative into a more mature, demand-led commercial market, steered by improving infrastructure, expanding logistics connectivity, and a growing supply of higher-quality developments.
Premium Office Space Commands New Pricing Power
Occupancy across prime Grade A office buildings has reached approximately 85 percent, with these assets now achieving rental premiums of three to four times over older Grade C stock. Prime office rents in Sharjah remain 50 to 60 percent lower than comparable Dubai locations, yet the gap is narrowing as quality improves.
Savills forecasts prime office rental growth of between 5 to 10 percent across 2026, supported by constrained near-term Grade A supply.
Ongoing cost pressures in Dubai have led to spillover demand into Sharjah. However, businesses are increasingly looking toward the emirate for its operational efficiency and connectivity in addition to its affordability.
“The commercial market of Sharjah is entering a new phase of maturity defined by the quality of its offer rather than simple cost arbitrage. Occupiers across both the office and industrial sectors are making deliberate, long-term commitments to the emirate, drawn by improving specifications, strategic connectivity, and a competitive cost base,” said Shane Breen, Head of Sharjah & Northern Emirates at Savills Middle East.
Industrial Sector Benefits from Supply Chain Shifts
The industrial and logistics sector in Sharjah continues to benefit from broader structural shifts across global supply chains as businesses prioritize resilience and decentralized logistics networks. Demand remains concentrated in key hubs such as Al Sajaa and along the E611 corridor, driven by third-party logistics operators, distributors, and light manufacturing occupiers.
Industrial transaction values increased by 89 percent year-on-year to AED9.2 billion, reflecting rising investor confidence and strengthening land values. Emirates Industrial City recorded the strongest annual land value growth, doubling in value, followed by Al Qasimia City at 87.5 percent and Al Sajaa at 43.8 percent.
Meanwhile, the industrial rental market in Sharjah recorded average rental growth of 61 percent year-on-year, with Emirates Industrial City and Al Sajaa among the strongest-performing locations.
Strategic Cost Advantage Underpins Long-Term Appeal
Looking ahead, Savills expects the commercial property market of Sharjah to maintain positive momentum through 2026. The emirate’s 30 to 50 percent cost advantage compared to Dubai and Abu Dhabi is expected to continue supporting long-term occupier and investor appeal.
The performance aligns with broader momentum across the UAE’s real estate sector. Dubai’s property sector demonstrated exceptional resilience in Q1 2026, while Abu Dhabi property prices jumped 6.4% during the same period, underscoring sustained investor confidence across the region.