How to Buy Property in Sharjah?
Back in the day, buying property in Sharjah wasn't possible without a residency visa. However, that has changed now. Since 2014 the Sharjah government has made landmark reforms to the real estate ownership laws regarding foreign property investments. To buy property in Sharjah, You don't need a residency visa at the time of purchase now. Every property purchased in Sharjah can be done on leasehold for 100 years and is open for GCC Arab nationals to purchase on freehold. Here is an insight into everything that you need to know before investing in a property in Sharjah.
Deposits and Regulations:A large number of people want to make a purchase of property in Sharjah for renting purposes. However, the central bank has lending guidelines that you need to follow. An expatriate purchasing property valued within $1,360,000 (4,994,600 AED) is required to provide at least 25% of the total price as a deposit. And with the properties that are valued at more than $1,360,000, they need to deposit 35% of the total price. These deposit percentages are viable for only the first property purchased.
If you want to buy additional properties, then a minimum of 40% of the total price is to be deposited. And if the property that you are willing to purchase is under construction, then a minimum of 50% of the total price deposit is required. When browsing through the properties, keep in mind the percentages and then move further with the offer. However, non-GCC Arab nationals can only buy up to five properties in Sharjah.
Property Lines:For Emirati and GCC Arab nationals, real estate is open anywhere in the city. There are not any restrictions on where they can buy property; however, when it comes to non- GCC Arab nationals, that isn't the case. The non-GCC Arab nationals can only purchase properties in specific locations in Sharjah.
For example, the non-GCC Arab nationals can only buy property at the edge of the Tilal city where the city was building cluster communities around the city's centre. That is why research the areas properly to know better where you can and can't buy a property.
Registrations and Contracts:
After you purchase a new property in Sharjah, it is essential to register it with the Sharjah real estate registration department. Provide any tenancy contracts with your registration documents if you plan to use your purchased property as an investment property.
Since the buyers rent out the properties, make sure that all the contract contents are adequately formulated, explaining the relationship of all the parties associated with the property. This contact would include the landlord and the tenant's lease made with any real estate agent for property management.
Renting Regulations in Sharjah:You must be aware of specific rental regulations in Sharjah before renting out your property. According to the legislation in Sharjah, the landlord cannot increase the rent for the tenant within the first three years of the lease.
After three years, the landlord can increase the rent to the market-regulated prices without a cap. However, after increasing the rent for the 1st time, the second rent increase cannot happen until two years pass. The renters are open to appearing to the Sharjah rent dispute committee to manage their rental disputes.