Sharjah’s commercial property market recorded strong growth in the first quarter of 2026, driven by higher demand for office space, rising industrial activity and increased investor confidence, according to a new report by Savills.
The report said Sharjah is increasingly attracting businesses for its connectivity, infrastructure and operational efficiency, alongside lower costs compared to Dubai.
Demand remained strongest for mid-market and Grade A office buildings, as companies focused on modern facilities and accessible locations. Occupancy in prime Grade A offices reached around 85%, while rental rates for these properties were three to four times higher than older Grade C buildings.
Prime office rents in Sharjah also remained 50 to 60 per cent lower than similar locations in Dubai, helping maintain demand from companies looking for cost-effective office space.
Savills expects prime office rents in Sharjah to grow by 5 to 10 per cent during 2026 due to limited new Grade A supply and continued demand from businesses relocating from Dubai.
Industrial growth
The report highlighted continued expansion in Sharjah’s industrial and logistics sector, particularly in areas such as Al Sajaa and the E611 corridor.
Demand has been driven by logistics companies, distributors and light manufacturing firms seeking modern warehouses with higher power capacity, better truck access and improved specifications.
Industrial transaction values rose 89 per cent year-on-year to Dhs9.2 billion, reflecting stronger investor interest and higher land values across industrial zones.
According to the report, Emirates Industrial City recorded the highest annual land value increase, followed by Al Qasimia City and Al Sajaa.
Industrial rents in Sharjah also increased by an average of 61 per cent compared to the same period last year, supported by limited supply of modern warehouse facilities and growing occupier demand.
Market outlook
Shane Breen, Head of Sharjah & Northern Emirates at Savills, said, “Sharjah’s commercial market is entering a new phase of maturity, one defined less by cost arbitrage and more by the quality of its offer. We are seeing occupiers across both the office and industrial sectors make deliberate, long-term commitments to the emirate, drawn by improving specifications, strategic connectivity and a competitive cost base. The fundamentals underpinning both sectors remain robust, and while near-term regional uncertainty warrants measured caution, Sharjah is increasingly well-positioned as a destination of choice for occupiers and investors with a long-term outlook.”
Savills said Sharjah’s commercial property market is expected to maintain positive momentum through 2026, supported by limited supply, improving asset quality and demand for competitively priced commercial space.
tanvir@dubainewsweek.com
