Sharjah vs. Dubai: Where to invest in 2025?

Are you looking to invest in the Emirates? The top two cities you might have thought of are Dubai and Sharjah. If you closely see the real estate market in Dubai, then being a budget-conscious investor, it might be difficult for you to buy or rent a decent property in Dubai compared to in Sharjah. Choosing where to invest can be challenging, especially in those areas where the real estate market is growing at a rapid pace. This page helps you understand some key information that helps you decide where to invest in 2025, Dubai or Sharjah. 

Current Real Estate Trends in Sharjah vs Dubai

The real estate prices for a property fluctuate non-uniformly depending on various factors. When you shift your focus to the real estate price trend of Sharjah and Dubai, you can observe a strong upward trend as of September 2025, showing yearly growth from previous decades. The price difference between Dubai and Sharjah properties is typically 30% to 50%, and this gap can be a key entry point for new investors entering the real estate market. 

Dubai

Villas have shown a nearly 27% growth annually, whereas apartments in Dubai have shown a steady growth of more than 20% year-over-year. Since late 2024, the real estate market has shown 6% growth in the overall real estate sector, making it stand among the fastest-growing property markets globally. As of 2025, Dubai has maintained its position as a powerhouse in the Emirates' real estate market, with sales of AED 431 billion recorded during the first half of 2025. Most of Dubai's projects are luxurious and have high foreign investor interest, so it is understandable why it has bold growth and offers faster capital growth. 

Top Areas to Invest in Dubai
 

• Aljada
• Tilal City
• Al Khan
• Muwaileh
• Al nahda Sharjah

Sharjah 

On the other hand, the Sharjah property market has shown growth in a more sensible manner, where the major factor was its affordable property prices, making it an attractive and better option for budget-conscious investors. For example, in prime areas such as Al Majaz, the property prices were aggressively increased by more than 50%. On the other hand, the new developments were launched at a more affordable rate. In 2025, Sharjah's properties gained strong momentum, with more than AED 2 billion of transactions recorded, which shows over 45% growth year-on-year. Some reports claim that this aggressive growth is driven by affordable and expanding zones like Aljada and Tilal City properties, which offer cheaper options than those in Dubai. 

Top Areas to Invest in Sharjah
 

• Downtown Dubai
• Dubai marina
• Business Bay
• Jumeirah Village Circle (JVC)
• Palm Jumeirah

Essential Considerations Before Investing in Sharjah

Let's discuss important pointers to find out why you should invest in Sharjah in 2025. 
 

• Average property price growth (2025): Prices have grown between 4% and 50%, but the pace has been sluggish in areas where prices have grown between 4% and 50%. 
   
• 2-Bedroom Apartment Rent: The annual rent for a 2-bedroom apartment in Sharjah can cost between AED 50,000 and AED 70,000.
   
• Rental Yield: The rental yield for residential properties can be around 4.8% or over on average, while the yield for studios can go up to 6%. 
   
• Government Transfer Fee: The fee can be 1 or 2 % of the property purchase cost. 
   
• Foreign Ownership: There are full frehold zones in designated areas for foreign ownership
   
• Transaction Value Growth: 
   
• Mortgage Interest Rates: Currently, Financial Institutions charge between 3.75% and 5% of interest on property purchases.  

Essential Considerations Before Investing in Dubai

Below are some pointers you can see and keep in mind before investing in Dubai in 2025. 
 

• Average property price growth (2025): Prices have grown between 6% and 30%, with an annual average of nearly 18%, which is a reasonable rate.
   
• 2-Bedroom Apartment Rent: The average annual cost of renting a 2-bedroom apartment can reach AED 80,000 or more.
   
• Rental Yield: The rental yield in Dubai starts at an average of 6%, and for studios, it can reach up to 8.5% on residential properties.  
   
• Government Transfer Fee: Around 4% of the property purchase price. 
   
• Foreign Ownership: It has extensive freehold zones for foreign ownership. 
   
• Transaction Value Growth: There has been a surge in transaction value, nearly 46%.
   
• Mortgage Interest Rates: A legitimate financial institution may charge between 3.9% and 7% interest. 

Final Words 

Deciding to invest in Dubai or Sharjah depends on personal and market interests. Sharjah offers affordable opportunities with freehold spaces and family-friendly communities; on the other hand, Dubai is more luxurious, where the real estate market is already well established, and you need to hold a strong capital. Investing in Sharjah and Dubai has its own benefits regarding ownership, mortgage, etc. At the end, before making the final decision, consider consulting with a trusted and experienced real estate advisor or agent who can provide you with the right knowledge and support, making you take a more insightful decision.