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  • Sharjah Commercial Property Market Posts Strong Q1 2026 Performance

    Sharjah Commercial Property Market Posts Strong Q1 2026 Performance

    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.

  • UAE Industrial Real Estate Market Grows Amid Strong Trade Demand

    The country is strengthening its position as a global logistics and connectivity hub through an ambitious array of infrastructure projects, including advanced rail networks, cutting-edge transportation technologies, urban mobility solutions, and integrated logistics platforms.

    Trade Boom Fuels Warehousing Demand

    The UAE’s foreign trade account has been rising steadily, with imports witnessing a 15.6% increase and non-oil exports recording substantial year-on-year growth of 41.3% in Q1 2025. Re-exports totaled Dh630 billion, reinforcing structural demand for warehousing and logistics.

    “The UAE’s industrial landscape is witnessing a significant transformation. As this market matures, an accelerated focus on technological efficiency, sustainability and human-centric design will be crucial to meet the diverse needs of international occupiers and optimize new logistical models,” said Taimur Khan, Head of Research, MEA, JLL.

    Khan added that streamlined, long-term trade policies and GCC-wide government infrastructure development are driving sustained demand for specialized warehousing and logistics solutions, reinforcing the UAE’s position as a regional gateway.

    Near-Full Occupancy in Established Zones

    Warehousing across core UAE hubs remains tight, with established industrial zones across Dubai experiencing near-full occupancy rates. Landlords are implementing significant rental increases in response to market conditions, creating a spillover effect extending to Abu Dhabi and the Northern Emirates.

    The Al Maktoum International Airport expansion is shifting the economic focal point toward Dubai South, while smart-mobility targets and the RTA-Dubai Land Department data-sharing partnership are improving transparency and enabling faster decision-making.

    In Abu Dhabi, as the Khalifa Economic Zones reaches operational maturity, it is diversifying into new development categories, bringing significant new industrial stock to the market. These range from specialized storage facilities to integrated business districts, including the Aquaculture Zone, Rahayel Auto City, Metal Park, Al Ain Business Park, and new logistics parks.

    Investment Yields Remain Attractive

    The industrial real estate market’s unprecedented growth has attracted sizeable investment deals from major regional and international players. All grades, including Prime, A & B, maintained consistent yield ranges over the past two years, with slight compression evident in Q4 2025 for Prime and Grade A assets.

    “Robust macroeconomic fundamentals, including a growing non-oil economy, population and enhanced business competitiveness, are driving demand and resilience in the UAE’s industrial market,” said Abhishek Mittal, Head of Industrial, JLL.

    Consistent returns ranging from 7.25% to 8.25% across both Dubai and Abu Dhabi indicate a mature, low-risk market with strong fundamentals, making it ideal for income-focused strategies.

    Economic Fundamentals Support Growth

    The UAE’s GDP is forecast to grow 5.1% in 2026, reaching around Dh2.1 trillion by 2028. Population projections indicate growth rates moderating from 2.9% in 2025 to 1.1% by 2030, when the population is expected to reach 12.5 million.

    Trade flows remain robust, while expanding e-commerce drives demand for modern warehousing, distribution centers, and last-mile logistics. This growth is reinforced by long-term industrial policy, including the federal Operation 300bn program, Abu Dhabi’s Industrial Strategy 2031, and Dubai Industrial Strategy 2030.

    Looking ahead, JLL expects market momentum to remain resilient as the non-oil economy expands and trade-led activity deepens. Occupiers will prioritize flexibility and automation-ready, energy-efficient facilities, while investors are expected to remain selective, favoring institutional-grade platforms as infrastructure investment broadens viable industrial nodes across the UAE.