Sharjah Emerges As A Growing Commercial Hub Amid Rising Office And Industrial Demand
Sharjah’s commercial property market continues to demonstrate strong momentum inQ1 2026, supported by rising demand for quality office space, sustained industrial activity and growing investor confidence, according to Savills latest Sharjah Industrial and Office Property Market Report.
The report highlights Sharjah’s continued evolution from a cost-driven alternative into a more mature, demand-led commercial market, supported by improving infrastructure, expanding logistics connectivity, and a growing supply of higher-quality developments. Increasingly, the emirate is being defined by its role as a strategic business base rather than on the basis of price alone.
Sharjah’s office market has remained resilient through recent times. Ongoing cost pressures in Dubai have certainly led to spillover demand into Sharjah, however, businesses are increasingly looking towards the emirate for its connectivity and operational efficiency in addition to its affordability. Demand is particularly concentrated within mid-market and Grade A assets, as occupiers prioritise modern specifications, accessibility and overall asset quality.
This growing flight to quality is creating a wider performance gap between prime and secondary assets, with well-located Grade A buildings continuing to outperform older stock amid constrained supply. According to the report, occupancy across prime Grade A office buildings has reached approximately 85%, while Grade A assets are now achieving rental premiums of three to four times over older Grade C stock. Prime office rents in Sharjah also remain 50–60% lower than comparable Dubai locations, continuing to support occupier demand.
The report also highlights growing segmentation within the office market, with prime buildings continuing to outperform older stock. Savills forecasts prime office rental growth of between 5–10% across 2026, supported by constrained near-term Grade A supply and continued spillover demand from Dubai.
At the same time, Sharjah’s industrial and logistics sector continues to benefit from broader structural shifts across global supply chains, as businesses increasingly prioritise resilience, decentralised logistics networks, and inventory buffering strategies. Demand remains concentrated in key hubs such as Al Sajaa and along the E611 corridor, driven by third-party logistics operators, distributors and light manufacturing occupiers. They are also placing greater emphasis on modern warehouse specifications, including power capacity, ceiling heights and efficient truck access, reinforcing demand for higher-quality industrial stock.
Industrial transaction values increased by 89% year-on-year to AED 9.2 billion, reflecting rising investor confidence and strengthening land values across key industrial zones. Emirates Industrial City recorded the strongest annual land value growth,doubling in value, followed by Al Qasimia City at 87.5% and Al Sajaa at 43.8%.
Meanwhile, Sharjah’s industrial rental market recorded average rental growth of 61% year-on-year, with Emirates Industrial City and Al Sajaa among the strongest-performing locations. Limited availability of modern warehousing stock and rising occupier demand continue to support rental performance across the sector.
Shane Breen, Head of Sharjah & Northern Emirates at Savills Middle East, 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.”
Looking ahead, Savills expects Sharjah’s commercial property market to maintain positive momentum through 2026, supported by limited supply, improving asset quality and continued demand from occupiers seeking competitively-priced, strategically-located commercial space. The emirate’s 30–50% cost advantage compared to Dubai and Abu Dhabi is also expected to continue supporting long-term occupier and investor appeal.
Here’s a link to the full report: Sharjah Industrial & Office Market Report Q1 2026
