If you’re renting in Sharjah in 2025, you’ve probably felt the market shifting underfoot. What...
The Sharjah Rental Index launched in early 2025 is now playing a significant role in cooling rent hikes and stabilizing leasing activity across the emirate. After more than a year of rapid rent increases, especially in upgraded buildings, this government-led tool is starting to offer welcome relief—particularly for long-time tenants renewing their contracts.
At OPlus Realty, we break down what this change means for you—whether you’re a tenant, landlord, or real estate investor in Sharjah.
Understanding the Sharjah Rental Index
The Sharjah Rental Index serves as an official pricing guide that ensures rental rates remain fair, balanced, and transparent. It takes into account multiple factors:
- Property age and condition
- Location and demand
- Building facilities and quality of maintenance
- Recent upgrades or renovations
This initiative is similar to Dubai’s smart rental index and aims to reduce arbitrary rent increases by encouraging alignment between tenants and landlords.
How the Rental Index Is Affecting Rent Prices
While the initial impact of the Rental Index caused some rent hikes—mainly in buildings that had just undergone renovations—rents are now starting to level off.
According to Betterhomes’ expert Muhammad Ikhlaq:
“Rental increases are expected to moderate in the second half of the year, particularly for renewals.”
This is especially evident in older buildings that had pushed their rates significantly during early 2025. However, by Q3, a noticeable slowdown is expected, with landlords adjusting prices based on index benchmarks rather than market assumptions.
Sharjah Areas Still Showing Rent Growth
While overall trends show moderation, specific areas continue to command premium rental rates due to location and amenities.
High-demand areas include:
- Muwaileh Commercial
- Al Majaz
- Al Khan
- Maryam Island
- Masaar and Tilal City
These communities offer residents enhanced infrastructure, smart access features, and family-oriented layouts—all contributing to sustained demand.
View OPlus Realty properties in Sharjah
Comparing Old and New Property Rentals in Sharjah
There is a clear rent gap between new developments and older buildings, especially those that haven’t been upgraded.
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Contact us via WhatsApp| Property Type | Avg. Annual Rent (2-BR) | Notes |
|---|---|---|
| Older Upgraded Buildings | AED 50,000 | Stable with moderate upgrades |
| New Mid-Tier Apartments | AED 70,000 | Competitive pricing, quick leases |
| High-End Community Projects | AED 90,000–AED 110,000 | Includes amenities & smart tech |
According to Rentify, newly constructed or significantly upgraded buildings can command up to 22% more in rent compared to older, unrenovated options.
Impact on Lease Renewals for 2025
One of the most visible benefits of the new Sharjah Rental Index is being felt during lease renewals.
Previously, many tenants were surprised by rent jumps of up to 25%, especially in Q1 and Q2 2025. Now, landlords are more restricted and tend to follow benchmarked ranges, which introduces:
- Greater predictability
- Fewer disputes
- More negotiation leverage for tenants
Some landlords are offering rent-free periods, flexible payments, or no commission as incentives—especially for older buildings that need to remain competitive.
Why Investors Should Pay Close Attention
If you’re considering investing in Sharjah property, the Rental Index is a strategic tool that:
- Provides more transparent pricing
- Helps forecast realistic ROI
- Guides better property upgrade decisions
➡️ For example, if you invest in a newer development in Al Majaz or Maryam Island, data suggests you can achieve 25% higher rental income versus legacy units in older towers.
New Supply Entering the Sharjah Market
New residential towers and townhouses are being delivered in phases across the city, often outside large master plans but priced competitively.
“They tend to lease quickly due to amenities and flexible terms,” says Rashed Hareb of Rentify.
However:
- Older towers not undergoing renovation are losing ground
- The gap in demand and pricing continues to widen
- Tenants are gravitating toward smartly-managed communities
Final Takeaways from OPlus Realty
Here’s what our experts recommend:
For Tenants:
- Use the Sharjah Rental Index to negotiate rent during renewals
- Compare pricing and amenities before accepting renewal hikes
- Consider moving to better-managed or newer buildings
For Landlords:
- Upgrade aging buildings to stay competitive
- Price rentals according to index guidance
- Offer incentives to retain good tenants
📞 Need Help Navigating Sharjah’s Rental Market?
Whether you’re renewing, relocating, or investing, the Sharjah Rental Index gives you clarity—OPlus Realty gives you the edge.
👉 Contact OPlus Realty today for property tours, rent evaluations, and expert advice.
👉 Let’s secure your smart rental move in 2025.
