Ajman Free Zone, where residential buildings are still under construction in the old industrial area. The National
Residential property prices in Ajman may rise by between 30 and 40 per cent within six months, report property professionals who specialise in the northern emirate.
“Back in November, we were selling property at less than Dh400 per square foot,” said Khurram Burney, from Dubai-based Estate 400, which is developing five residential projects in Ajman. “Now prices are roughly Dh480 to Dh500 per square foot.”
Oxford Business Group (OBG), a research and publishing company, said the value of Ajman’s property market, based on transaction values, was Dh3.5 billion (US$953 million) in 2005.
In the third quarter of last year alone, OBG reported, Dh80bn of investment was announced.
Since then several more major projects have been announced, including the Dh3.5bn Eye of Ajman, Chapal World’s Dh2.5bn Flora Residences and Al Zorah, a Dh220bn master-planned city being developed by Solidere and the emirate’s government. One of the key factors driving Ajman’s property market has been affordability, as most developers in the emirate are focusing on middle-class investors who were priced out of Dubai and Abu Dhabi. “The freehold market of Dubai was only targeting a higher-net worth group – and more of them are investors than the actual end users,” said Salman Soofi, of Brooks Real Estate. “The Northern Emirates and especially Ajman are targeting end users who want to live in Sharjah and Ajman.”
Mr Burney said buyers were also helped by easier financing terms.
“A lot of investors are looking into this emirate, mainly because of the payment instalments and the prices. You put as little as five per cent down to book an apartment,” he said. This helped to make Ajman “a great potential market for developers”, he added.
Some developers were providing their own finance packages to offset a reluctance by many banks to provide mortgages in the Northern Emirates, said Tessa Morris, the marketing director of DSL Exhibitions, which has organised this week’s R&R Local Property Show.
“According to developers, many banks have been slow to recognise that [middle income] people can afford mortgages,” she said. “In Ajman you have interesting stage payments that make property buying affordable.”
The launch of the Sharia-compliant Ajman Bank was expected to provide further support to the property sector.
On the regulatory level, Ajman was expected to move “towards the establishment of escrow trust accounts for all off-plan sales”, said Aftab Hemani, of Dubai-based Cobalt Real Estate.
Ajman was the first emirate to provide freehold rights to foreign nationals, in 2004. As recent statistics released by the Ajman Chamber of Commerce & Industry showed, foreigners now own 33 per cent of development projects in the emirate.
This has elevated Ajman’s annual investment growth rate to an average of 6.7 per cent.
Source: The National
Wednesday, 25 June 2008
New law to make Ajman 'Dubai of five years ago'
Real estate prices in Ajman are likely to rise following the introduction of the emirate's new property law, says a senior official.
The legislation is intended to increase confidence in the real estate market, Sheikh Majid bin Saeed bin Rashid Al Nuaimi, head of the Amiri Court, told Emirates Business. Property developers will have to register with the Ajman Land and Property Department from Sunday under the new regulations.
Dr Hareb Al Aryani, the department's director-general, said land prices in the emirate had increased by 200 per cent over the past four years and were expected to rise further because of the new law.
Registered developers will be given a certificate by the department and will have to open a trust account with a bank before being allowed to launch a project.
"The Government of Ajman is currently negotiating with banks operating in the UAE to open trust accounts for developers," he said. "Buyers will pay funds directly to the bank and the department will control withdrawals.
"The law is intended to protect the rights of all parties involved in the construction process and ensure on-time delivery, and this will increase confidence in Ajman's property market."
The legislation gives freehold title rights to GCC nationals and expatriates while residency and ownership rights are in line with federal legislation, he added.
Real estate industry professionals say a property boom is under way in the Northern Emirates, with prices in Ajman likely to rise by 100 per cent in six months.
One of those forecasting increases is Khaled Raouf, a property consultant with Goldcrest Properties, who said: "Ajman has become the Dubai of five years ago. Property prices are still far behind those of other emirates, ranging from Dh550 to Dh600 per sq ft. The price of a new project in Dubai is Dh4,500 per sq ft."
Source: Emirates Business 24/7
The legislation is intended to increase confidence in the real estate market, Sheikh Majid bin Saeed bin Rashid Al Nuaimi, head of the Amiri Court, told Emirates Business. Property developers will have to register with the Ajman Land and Property Department from Sunday under the new regulations.
Dr Hareb Al Aryani, the department's director-general, said land prices in the emirate had increased by 200 per cent over the past four years and were expected to rise further because of the new law.
Registered developers will be given a certificate by the department and will have to open a trust account with a bank before being allowed to launch a project.
"The Government of Ajman is currently negotiating with banks operating in the UAE to open trust accounts for developers," he said. "Buyers will pay funds directly to the bank and the department will control withdrawals.
"The law is intended to protect the rights of all parties involved in the construction process and ensure on-time delivery, and this will increase confidence in Ajman's property market."
The legislation gives freehold title rights to GCC nationals and expatriates while residency and ownership rights are in line with federal legislation, he added.
Real estate industry professionals say a property boom is under way in the Northern Emirates, with prices in Ajman likely to rise by 100 per cent in six months.
One of those forecasting increases is Khaled Raouf, a property consultant with Goldcrest Properties, who said: "Ajman has become the Dubai of five years ago. Property prices are still far behind those of other emirates, ranging from Dh550 to Dh600 per sq ft. The price of a new project in Dubai is Dh4,500 per sq ft."
Source: Emirates Business 24/7
Wednesday, 18 June 2008
Ajman Issues New Realty Law
Ajman issues new realty law
By Bassma Al Jandaly, Staff Reporter Gulf NewsPublished: June 15, 2008, 23:44
Ajman: A new property law is set to boost Ajman's real estate sector which has witnessed solid growth over the last few months.
His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Sup-reme Council and Ruler of Ajman, last week issued Amiri Decree No 7 and 8, 2008, to regulate the emirate's land and properties sector.
Billions of dollars are being pumped into the emirate's property sector, where prices have jumped from Dh350 per square foot to nearly Dh500 during the last six months, as investors scramble for a piece of Ajman's growing housing sector.
The decree comprises 34 articles that legalise freehold ownership of land and property for UAE and GCC citizens and companies wholly owned by them as well as to the public stock companies.
Non-GCC developers and buyers can also own freehold land and property in designated areas that are to be determined and approved by the Ajman Ruler. Foreign investors have snapped up land on both sides of Emirates Road to build master-planned projects in Ajman.
"Apart from GCC nationals, other expatriates could obtain property on a freehold as well as 50-year leasehold basis which is renewable in areas designated by the Ruler," the law says.
The law empowers the Department of Land and Property to regulate the sector, survey areas, approve the land map and the fees for the services provided by the department and register all properties.
The Lands Department is solely assigned to register property rights and long-term leasing contracts.
"The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And no dealings will be admitted unless registered," it said.
Bank guarantees must be deposited for those who wish to invest in Ajman and that money must be used only for the project itself.
"An amount of five per cent of the project value will be frozen and will not be released until completion of construction of the project," it stipulates.
The law states that a developer may not advertise projects without written approval from the department.
The developers will be responsible for maintaining the project for 10 years following handover.
A fine of Dh100,000 will be imposed on those who practice real estate business in the emirate without a licence.
At a glance: 24 projects on track
Ajman One, Ajman uptown, Al Mamouqa City, Al Itihad Village, Green City, Ajman Boulevard, Emirates City, Al Hamidia City, Al Ameera Village, Al Emirat Lagoon, Ajman Eye City, Humaid City, Aqaar, Park Avenue, Al Awali City, Down Town, Shabil, Falcon Towers, Ajman Pearl, Creek Towers, Ajman Marina, Al Nuaimi Towers, Free Zone Marina, Al Zorah.
By Bassma Al Jandaly, Staff Reporter Gulf NewsPublished: June 15, 2008, 23:44
Ajman: A new property law is set to boost Ajman's real estate sector which has witnessed solid growth over the last few months.
His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Sup-reme Council and Ruler of Ajman, last week issued Amiri Decree No 7 and 8, 2008, to regulate the emirate's land and properties sector.
Billions of dollars are being pumped into the emirate's property sector, where prices have jumped from Dh350 per square foot to nearly Dh500 during the last six months, as investors scramble for a piece of Ajman's growing housing sector.
The decree comprises 34 articles that legalise freehold ownership of land and property for UAE and GCC citizens and companies wholly owned by them as well as to the public stock companies.
Non-GCC developers and buyers can also own freehold land and property in designated areas that are to be determined and approved by the Ajman Ruler. Foreign investors have snapped up land on both sides of Emirates Road to build master-planned projects in Ajman.
"Apart from GCC nationals, other expatriates could obtain property on a freehold as well as 50-year leasehold basis which is renewable in areas designated by the Ruler," the law says.
The law empowers the Department of Land and Property to regulate the sector, survey areas, approve the land map and the fees for the services provided by the department and register all properties.
The Lands Department is solely assigned to register property rights and long-term leasing contracts.
"The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And no dealings will be admitted unless registered," it said.
Bank guarantees must be deposited for those who wish to invest in Ajman and that money must be used only for the project itself.
"An amount of five per cent of the project value will be frozen and will not be released until completion of construction of the project," it stipulates.
The law states that a developer may not advertise projects without written approval from the department.
The developers will be responsible for maintaining the project for 10 years following handover.
A fine of Dh100,000 will be imposed on those who practice real estate business in the emirate without a licence.
At a glance: 24 projects on track
Ajman One, Ajman uptown, Al Mamouqa City, Al Itihad Village, Green City, Ajman Boulevard, Emirates City, Al Hamidia City, Al Ameera Village, Al Emirat Lagoon, Ajman Eye City, Humaid City, Aqaar, Park Avenue, Al Awali City, Down Town, Shabil, Falcon Towers, Ajman Pearl, Creek Towers, Ajman Marina, Al Nuaimi Towers, Free Zone Marina, Al Zorah.
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