Tilal Real Estate, a company formed to develop Sharjah’s property sector, has announced the launch of a new project called Tilal City.
The project will be spread across a total area of 25 million square feet and will be located along Emirates Road, a statement said.
No further details such as the value of the project or the type of properties to be developed were disclosed.
Tilal Real Estate, formed through a partnership of Eskan Real Estate Development and the emirate’s investment arm Sharjah Asset Management, will focus on the establishment, development and management of real estate projects, the statement added.
Sheikh Sultan Bin Ahmed al Qasimi, who is the chairman of Tilal Real Estate, said that a series of real estate projects will be developed in Sharjah following the formation of the company.
Sharjah’s property sector has been booming in the last year, with its residential rental sector performing extremely well.
Developers are also cashing in on the high rental rates as they launch new residential properties across the emirate.
Multiple apartment blocks have been launched in King Faisal Street in Sharjah’s Al Majaz area while many master planned communities are being planned on the outskirts of the city, according to the real estate consultancy Cluttons.
Earlier this year UAE-based firm Al Thuriah announced plans to construct two high-rise residential towers in Sharjah, close to its border to Dubai.
Sharjah has been benefiting from a steady stream of residents who are priced out of Dubai, keeping the rental rates high in the northern emirate. Moreover, the surge in demand for affordable staff housing from Dubai-based firms has further pushed up the rents, analysts noted.
According to the report by Cluttons, rents in Sharjah rose by 17 per cent during the first half of this year, after rising 16 per cent in 2013. Rental rates grew 5.7 per cent in the second quarter alone, following a 10.8 per cent rise in Q1.
Cluttons noted that the rents of the villas in Sharjah were higher compared to the apartments due to a weak supply pipeline and a limited villa stock.