While Dubai and Abu Dhabi have traditionally dominated real estate headlines, smart investors are increasingly turning their eyes north. In the first quarter of 2025, the Northern Emirates – Sharjah, Ajman and Ras Al Khaimah – demonstrated impressive growth, transforming themselves from ‘satellites’ of Dubai into attractive investment destinations with their own identity. They offer a unique combination of affordability, high growth potential and diversification, making them a must-have in the portfolio of any serious investor in the region.
Sharjah: The Growth Champion
Sharjah stood out in Q1 2025 with the strongest growth among smaller emirates, cementing its position as market leader. The emirate recorded transactions worth AED 13.2 billion from nearly 25,000 deals, representing a remarkable year-on-year growth of 31.9%. Sharjah’s appeal lies in its smart strategy. It offers a combination of more affordable prices compared to Dubai, coupled with a strategic location in close proximity to the metropolis. New large-scale mixed-use projects that offer modern lifestyles and the growing interest in mid-priced housing are attracting both local buyers and investors from the Gulf countries looking for value and quality.
Ajman: Steady growth and solid returns
Ajman also demonstrated extremely strong momentum, reporting transactions worth AED 5.55 billion, a steady 29% year-on-year increase. The Ajman market is showing signs of maturity, with AED 3.69 billion of the total generated from outright sales and AED 905 million from mortgage transactions. This balance between cash buyers and those using financing is an indicator of a healthy market, attractive to both investors looking for quick returns and end users planning a long-term residence.
Ras Al Khaimah: The new lifestyle destination
Ras Al Khaimah continues its steady rise, becoming synonymous with lifestyle and tourism investment. In the first quarter, the emirate recorded ‘under construction’ home sales worth over AED 2.4 billion from more than 1,300 transactions. Unlike its more urbanised neighbours, Ras Al Khaimah is attracting attention for its lifestyle-focused projects, particularly in waterfront and resort developments. Investors are attracted by the potential for high yields from short-term rentals and the growing tourist flow stimulated by large-scale projects such as casinos and luxury hotel chains.
Why now? The engines of growth in the Northern Emirates
The rise of the Northern Emirates is the result of several key factors. First and foremost is the “spillover effect” from Dubai’s success – rising prices there are driving many buyers and investors to seek more affordable alternatives next door. But this is only part of the story. More importantly, these emirates are developing their own economic and lifestyle appeal. They are investing in infrastructure, tourism and creating unique offerings that make them independent destinations. For investors, this means the opportunity to diversify within a stable country like the UAE, taking advantage of different risk profiles and the potential for higher returns compared to more mature markets.
Conclusion: the new horizon for investors
The first quarter of 2025 proved that the Northern Emirates is no longer in the shadow of Dubai and Abu Dhabi. They are dynamic, growing markets that offer compelling opportunities for investors willing to look beyond the obvious. With their strong growth, strategic advantages and evolving identities, Sharjah, Ajman and Ras Al Khaimah represent the next wave of growth in the UAE real estate sector.
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