Tilal Properties, a joint venture between Sharjah Asset Management and Eskan Real Estate Development, is studying plans for two new real estate developments in Sharjah worth an estimated AED 3 billion (US$822m), according to media reports. The company is also considering projects elsewhere in the region, including possible projects in Saudi Arabia.
The new Sharjah projects in consideration are, reportedly, a residential housing project and an industrial city. A number of large-scale residential developments have been announced during the past two years, promising to bring thousands of new properties to market. The developments take advantage of the changes in Sharjah property law introduced in 2014 allowing more properties to be sold with 100 year leases to non-GCC citizens.
Tilal Properties launched is flagship project in 2014, in sync with Sharjah’s new property legislation: a AED 2 billion (US$ 540 million) master-planned real estate development called Tilal City*. The mixed-use development, located on Emirates Road about 10 kilometres from Sharjah International Airport, covers an area of 25 million square feet and will include some 2,000 residential plots, offices, retail stores, open parks, educational institutions and community facilities. The first properties in Tilal City are expected to be handed over to investors by the end of this year.
Meanwhile, Sharjah Asset Management, which is responsible for the asset management and investment activities for the Government of Sharjah, announced the launch of a new 14 million square foot industrial estate called Al Saja’a Industrial Oasis near Sharjah International Airport last year. The project is expected to be one of the largest industrial projects in the region, initially offering 353 plots to investors on freehold or leasehold basis.
According to global credit rating agency Standard & Poor’s, Sharjah’s real estate and business services sector accounts for about 20% of GDP, whilst manufacturing accounts for 16%.
Source: media, various
* Recent reports put this figure at AED 2.4 billion (US$653 million).