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Ajman Real Estate Regulatory Agency (Arra) has submitted a proposal to federal authorities to overhaul current property visa regulations

Arra is the first property agency of any emirate to officially submit such a proposal.

Emirates Business can reveal Arra wants to remove property values, fixed incomes or compulsory exits as criteria for granting or renewing six-month residency visas.

All of the above came as part of a federal resolution issued in May this year. Arra, in a five-point submission, says it should be possible to renew visas every six months (see graphic) for up to three years without the need to leave the country.

On minimum property value as one of the visa criteria, Arra stated: “The value of property in the Northern Emirates does not exceed half of the value of property in other emirates, and this will lead to only serving a certain investor.”

Regarding the requirement for a fixed income of not less than Dh10,000, Arra said: “This might cause various problems and will open the door for companies operating outside the country to give salary certificates with no reliable references.

“From our experience in the real estate market, most investors are businessmen with no fixed income.”

In May, Arra and Dubai’s Real Estate Regulatory Agency signed an agreement to create a unified strategy to develop the property sector. The agreement emphasises the need to create a unified strategy to develop, modernise and organise real estate-related activities. 

 

UAE to build $38 mln desal plant in Ajman

11Sep 2009

The UAE plans to build a 139 million dirham ($38 million) water desalination plant in Ajman, the UAE emirate where real estate projects have suffered delays because of water and electricity shortages.

The Federal Electricity and Water Authority (FEWA) on Sunday signed a contract with a consortium of UAE-based Tecton Engineering and Aqua Engineering of Austria to build the plant.

Tecton Managing Director S. Lakshmanan said the plant, located in the Al-Zawrah area, will have a capacity to produce 7 million imperial gallons per day (MIGD) of water.

“Ajman requires 18 MIGD of water currently. There will be a huge growth in consumption when buildings and towers under construction are completed in the next five years,” Lakshmanan told Maktoob Business in a telephone interview.

Ajman has two operating desalination plans of 6 MIGD capacity, one of which was built by the Tecton-Aqua consortium a year ago in Al-Zawrah, while the remaining water comes from underground sources.

For the new project, the consortium’s work includes design, manufacture, supply, construction and commissioning of the plant on a turnkey basis, Lakshmanan said.

 

 

Aqaar confirmed Ajman One schedule

Property developer Aqaar has confirmed that the first phase of Ajman One, the emirate’s first fully integrated complex, is on schedule for completion and handover in Q1 2011.

Ten of the 12 residential towers in the £440m mixed-use scheme have already sold out, illustrating that there is much demand for good quality property in Ajman.

Rami Dabbas, CEO of Aqaar told the press: “We aimed from the beginning to build a long-term strategy, based on three key elements: professionalism, by partnering with reputable contractors; sustainability, by developing self–funded projects; and pro-activity, by offering a unique and flexible payment scheme which can meet our clients's needs under any circumstances.

“Despite the current tough situation, our investors, who are mostly end-users, can look forward to receiving their keys without any hassles. This strongly demonstrates our forward-thinking values and strategic plans are well in place," he added.

Phase one of Ajman One will consist of 3,000 apartments. Aqaar is one of the first developers to register with Ajman Real Estate Regulatory Agency, permitting the firm to sale residential units.

 

 

Ajman Property: Equestrian-themed

Ajman's prestigious property Escape awarded main contract of its residential properties at the UAE emirate to well established local contractor, Ali Mousa LLC. Project mobilization is underway, as well as design work for an independent power plant and sewerage treatment plant that will serve the community.

Anwer Sher, Managing Director of Escape LLC: "Given the uncertainties and investment fear that has plagued the market since the new year, we felt it essential to ensure all our governmental and financial regulation was properly in place, and we are now ready to move forward with the construction of Escape."

Upon gaining approvals from the Ajman Real Estate Regulatory Agency (ARERA) earlier this year, an escrow account with Ajman Bank was opened to ensure a regulative process of security was in place for all parties involved with Escape. Escape's 82 million sq foot equestrian community at Ajman, comprising 645 luxurious villas, is on target and will be delivered in phases starting from the end of 2010.

 

Ajman Real Estate Watchdog Sets Deadline for Banking Safeguards

DUBAI - The real estate watchdog for Ajman has given developers one month to register for new banking safeguards, or else face penalties.

In a bid to improve transparency in the property market, the Ajman Real Estate Regulatory Agency (ARRA) has signed a deal to introduce trust accounts for all developments.

It has given real estate developers until May 1 to sign up to the scheme.

“One of our major objectives is to bring transparency and security to the property industry in Ajman, and to improve investors’ confidence in Ajman real estate market,” said Omar Al Barguthi, Director General of ARRA in a statement.

The programme was introduced after a deal struck with Abu Dhabi Islamic Bank on Sunday.

Trust or escrow accounts, as they are also known, are secure bank accounts into which investors’ money is paid.

It prevents fraud by limiting the access to the funds by the developer until after the project has reached a certain level of completion.

The measure in Ajman follows a similar rule introduced in Dubai last year. However lawyers who deal closely with property disputes said that there has been little compliance with the rule.

ARRA was formed last December to oversee Ajman’s burgeoning real estate sector.

 

Ajman has close to Dh1.4 billion worth of infrastructure projects

Ajman has close to Dh1.4 billion worth of infrastructure projects under construction to catch up with the rapid advancement various real estate developments have made in the UAE emirate. Ajman’s real estate market is the third largest followed by Dubai and Abu Dhabi in the UAE.

Mohammad Al Zarah, vice-president of Great Properties said: “A solid infrastructure is being implemented in Ajman with a total investment of about Dh1.4 billion.This figure includes Dh500 million allocated by the emirate for infrastructure as well as Dh800 million that was allocated for the recently launched sewerage system, which is one of the most important infrastructure projects in the emirate.”

There are currently six mega projects underway in Ajman, with a combined value of Dh40.8 billion, according to Mohammad Al Zarah, vice-president of Great Properties. Projects in Dubai account for 50 per cent of the UAE’s realty activities and Abu Dhabi projects account for 30 per cent, according to Al Zarah

 

Property Visa Law on the Way in March

Published: February 11, 2009, 22:55

ABU DHABI — New laws to grant six-month residency visas to individuals who buy freehold properties will be ready next month, a top Ministry of Interior official said on Tuesday.

The ministry is also studying the possibility of granting residency visas to the families of property owners.

The move comes amid a 20 per cent decline in property prices and a predicted fall of up to 50 per cent in some areas by the end of the year. 

“We are working on this draft to unify and streamline the procedures of issuance of residency visas for expatriates who purchase properties such as flats, offices, and shops,” said Brigadier Nassir Al Awadi Al Menhali, Acting Director-General of the Federal Naturalisation and Residency Department.

“They will get a six-month visa which can be renewed.”

Al Menhali said that details of the law, such as how much the renewal would cost, have not yet been worked out.

“It couldn’t come at a better time for the market,” said Vincent Easton, head of sales at Sherwoods, a property consultant firm. “I’m just confused about why it is only six months. It seems more like a visit visa.”

Previously, developers in Dubai had tried to entice prospective buyers from Pakistan and Iran by saying they could sponsor them for a three-year visa. However, problems arose when the application for residency was rejected by the Naturalisation and Residency Department (NRD).

In Abu Dhabi, a few developers had offered sponsorship to homebuyers.

Al Menhali said that there is no codified law which automatically grants expatriates residency if they purchase properties. He added that it is better to standardise the procedure across the entire country rather than some emirates applying different rules.

“It is not acceptable that every emirate has its own law or regulation because there is a federal law of naturalisation and residency that should be followed by all NRDs countrywide.”

B. R. Shetty, head of the NMC Group of companies, welcomed the decision to introduce a unified property law, and to grant visas to property owners irrespective of their employment status.

“These are timely decisions. Both these steps will boost investor confidence, and will remove uncertainties in the property market. People across the globe who have come here will now be tempted to make the UAE their second home as this is also a zero-tax country. They will now be encouraged to stay here even after their retirement to start business or consultations or any such activities,’’ Shetty said.

Surjit Singh, another prominent Indian industrialist, who also owns property in the UAE, said the unified property law would help narrow property price discrepancies across the emirates.

He said the move indicated the rulers’ concern for the interests of the expatriate community.

 

Low rates make Ajman property attractive

By Suzanne Fenton, Staff Reporter
Published: February 11, 2009, 22:55

Dubai: Buying opportunities in Ajman real estate have brightened up as rates come down to as low as Dh299 per square foot now from Dh600 per square foot six months ago.

While there are many bargains to be had here in Dubai if cash isn't an issue, in Ajman, the opportunities are just as great and, even better, targeted to the mid-income price bracket.

It is now possible to buy apartments in Ajman for as little as Dh299 per square foot. And not because you will have to wait three years for it to be built - just three to six months. Property prices in Ajman began a lot lower than those in Dubai - the first project launched in Ajman back in 2004 was Dh176 per square foot, according to Roger Wilkinson, managing director of Northern Emirates Property.

 

Ajman Free Zone Licence

Ajman Free Zone, in its endeavor to welcome all types of businesses, has produced 4 types of license namely: Trading License, Industrial License, Professional Services License, and National Industrial License.

Ajman Free Zone Trading License: 
This licence is issued to foreign/UAE companies/Free Zone Entities who wish to carry out trading activities in the Free Zone.

  		•   One activity: Dhs. 3,000 ( Annual )
  		•  Two activities: Dhs. 4,000 ( Annual )
  		•  Three Activities: Dhs. 5,000 ( Annual )
  		•  General Trading license: Dhs.7,000 ( Annual)

    Ajman Free Zone Professional Services License: 
    This licence issued to foreign/UAE companies/Free Zone Entities who wish to carry out the business of providing professional/services in the Free Zone.

  		•   Dhs.5,000/--( Annual )

    Ajman Free Zone Industrial License: 
    This licence is issued to foreign/UAE companies/Free Zone Entities who wish to carry out manufacturing activities in the Free Zone.

  		•   Dhs. 7,000/-- ( Annual )

    National Industrial License: 
    This licence is issued to a registered company operating in the Ajman Free Zone who meets the following eligibility criteria:

    • The company should be registered with GCC with a GCC national/s owing majority share holding of 51% or above.
    • At least 40% of the manufacturing process should be accomplished in the Free Zone.

    Companies holding a National Industrial Licence are eligible for duty free exports to the member states of the Arab Gulf Cooperation Council.

  		•   Dhs. 7,000/-- ( Annual )

     

    Ajman confident of stability and growth

    Ajman's property market is moving steadily and will revive in the coming few months, a senior government official said.

    "We seek to implant confidence in the minds of investors and buyers of real estate units. The market is doing well and is moving steadily especially after it absorbed the fallout of the global financial crisis," Arabic newspaper Al Khaleej quoted Ajman Land Department General Manager Harib Al Aryani as saying.

    Al Aryani hoped the market will revive in the coming months, especially after reactivating the new Amiri decrees and instructing department staffers to extend help and facilities to customers.

    Earlier this year, the Ajman Government amended a law creating Ajman Real Estate Regulatory Establishment to regulate the emirate's property and construction sector.

    Awali Real Estate Investments believes an authority of this nature could launch a new era of real estate development in Ajman, regulating the business of developers, investors and buyers alike.
    "Establishment of such an authority at this crucial time is very significant, and could lead the emirate to be the first to recover from the effects of the financial crisis."

    Ali Al Nemer, Awali Company Managing Director, said: "The establishment of the real estate authority at this current time is a sound and intelligent move. It reflects a very distinct and ambitious vision to turn Ajman into a foreign investment destination, on the one hand, and to strengthen Ajman's status in the UAE property market, on the other."

    Ajman saw 33 per cent of foreign investments compared to 11 per cent for other emirates, the company said in a press release.

    "In a time where companies worldwide are busy seeking outlets for their financial dilemmas, Ajman is developing means to regulate property market movement, preparing the market for the post-crisis period. Ajman has worked for years to develop regulations and improve its infrastructure, and has in the process attracted real estate investments in excess of Dh400 billion in 2008 according to reports," he added. Fahad Sattar Dero, Chief Executive Officer of Sweet Homes Group, told Emirates Business that they expect the market to grow, but at a slower pace.

     

    United Arab Emirates (Dubai) Plans To Unite Freehold Property Visa`s

    Posted Jan 26, 2009


    It looks like the Dubai government may well be ready to move and readjust its policy towards issuing freehold property visas. Since 2002 Developers in Dubai have been giving those foreign nationals, who purchased Dubai real estate residency visas, but recently the rules were changed and some developers were unable or unwilling to issue the residency visas anymore. By giving residency visas for a freehold property purchase, the Dubai government was able to attract a huge amount of foreign investment to Dubai. After witnessing the success of such a policy a number of developers in Ajman and Ras Al Khaimah decided to also employ this policy to foreign real estate investors. Since the visa policy was stopped there have been strong calls to reintroduce it. Now with only two out of seven Emirates not offering freehold property to foreigners there are calls for a unified freehold property visa for the United Arab Emirates.

    With Dubai really feeling the effects of the world economic turndown, real estate sales in the Emirate have plummeted to a record low. Therefore now would be the ideal time to act and to go back to developers being able to issue residency visas, so as to try and help stimulate real estate demand. The government advisory council that was created last October is now looking into the matter and says it will suggest a review of this area, and that perhaps all Emirates can instead follow a unified set of guidelines that will help clarify and simplify the process for all. Whilst no time frame has been given, the suggestion has been greeted with enthusiasm all around, and should help restore confidence in the UAE’s freehold real estate market. Just this one change could make a large difference to whether investors decide to purchase Dubai properties or not. And at the present time, anything that can be done to improve this area should be.

    Hopefully the Dubai government will not stall on the matter, and a quick implementation will follow, which can hopefully go someway to boosting property sales throughout all the Emirates. If this law does go through, it will become one of the many new changes brought in by the Dubai government in the past few weeks, all of which are aimed at increasing stability and long term health of the freehold property market.  
     

     

    Residence visa for freehold investors

    Sunday, Jan 11, 2009

    Gulf News

    Dubai: The UAE federal government is reviewing the issue of freehold property visas linked to foreigners' ownership of properties in different emirates, a top Dubai Government official told the media on Saturday.

    "The Advisory Council of ( Dubai Government ) has submitted a proposal to the Federal Government on the issue of property-linked visas to review," Nasser Bin Hassan Al Shaikh, director-general of Dubai Government's Department of Finance, said at a media briefing on the sidelines of the government's 2009 budget announcement.

    "Since a number of emirates have developed their own freehold visa arrangements, there are thoughts at the federal level to streamline the process and announce a unified guideline for all the emirates."

    Dubai Government created the Advisory Council in October last year, to assess the impact of the global financial crisis on Dubai's economy, which has been hit due to an outflow of capital, estimated to be well above Dh200 billion.

    He said there could be a new law guiding this soon, without giving any timeframe. When asked if he expects a positive resolution, he replied, "Yes, I hope so."

    The freehold visa issue has come to light in recent months when major master developers and Emaar - who have been helping foreign buyers of freehold properties to get three-year renewable residence visas - had stopped facilitating them last year, prompting investor outcry.

    Experts have welcomed the move, saying the country needed a unified regulation on this and a streamlined procedure to restore investor confidence.

    "It is reassuring. It is positive news and will bring a lot of faith and confidence in the market," Sudhir Kumar, managing director of Realtor's International, a property consultancy.

    "The matter of freehold visas has been an issue of major concern for real estate investors. This addresses the concern. With this, the government is showing its strength and resilience in the time of crisis."

    Dubai's master-developers have, since 2002, been pledging "freehold visas" to attract foreign investors to the emirate's real estate sector, in the absence of a proper rule to dictate this.

    Since then, they have facilitated this to lots of buyers having a special arrangement with the Dubai Naturalisation and Residency department. Subsequently, a number of master-developers in Ajman and Ras Al Khaimah followed suit, attracting massive investment into their real estate sector.

    Five out of the UAE's seven emirates now have designated areas where foreign nationals can buy and own properties on a freehold and leasehold basis, including Ajman. Sharjah does not allow non-Arabs to own properties on a freehold basis.

    Abu Dhabi allows foreigner to own what it calls "surface property" and not the land on designated areas. However, there is no federal law to regulate the freehold property market and visa issuance linked to property ownership to foreigners.

     

    2 decrees by Ajman Ruler to regulate property sector

     

    His Highness Sheikh Humaid bin Rashid Al Nuaimi, UAE Supreme Council member and ruler of Ajman today issued Emiri Decree 11/2008 setting up Ajman Property Regulation Establishment and Emiri Decree 12/2008 amending Emiri Decree 8/2008. The two decrees shall have immediate effect.

    According to the 21 article Decree 11/2008, the Ajman Property Regulation Establishment shall have a juridical personality affiliated with the Government of Ajman and shall be administratively, financially independent body with full legal competence.

    The Establishment which is fully tax-exempted will be tasked with drawing policies for property projects and commercial buildings in the emirates, recommending legislations as well as regulating the relations between property developers and buyers of the various units. It shall recommend speedy, friendly out-of-court approaches to resolve disputes that may arise between the two parties.

    It shall also advise the ruler on the allocation of areas for new free zone and property development and commercial buildings. It shall also have the authority to grant licenses to property developers.

    Emiri Decree 12/2008 amends Emiri Decree 8/2008 which regulates collective ownership at property projects and commercial building. It is also based on Emiri Decree 11/2008.

    The new decree adds "Ajman Property Regulation Establishment" to the definition of "Municipality" and amends the definition of "Director General" to read as follows: "the Director General of Ajman Property Regulation Establishment" and any person authorized to deputize for the Director General.

    In Emiri Decree 12/2008, the word "Lands Department" is deleted from Article 9, Article 11, Article 12 and Article 13 and is also replaced by the word "Establishment". The decree deletes Article 4 (Property Projects Committee) and any reference that is made to the committee in Articles 5, 6 and 7.

    The word "Establishment" also replaces the term "Property Projects Committee" wherever it occurs in the text of the decree.

     


    New real estate market regulator for Ajman

    Another UAE state is to introduce a real estate market regulator after the success of Dubai’s Real Estate Regulatory Authority (Rera).

    Ajman will develop an authority early next year, the emirate’s senior planning official has revealed. Mohammed bin Ahmed, the director of Ajman Municipality’s planning and survey department, also said the authority will start enforcing an escrow account law in 2009.

    Quoted by Emirates Business, Mr Bin Omeir said:

    “The new real estate regulatory body will be similar to that of Dubai’s Rera and will be established in the first quarter of next year.

    “The government agency will be a separate entity and will not be a part of Ajman’s Department of Land and Property.”

    Many of the UAE’s states have had an interested eye on Dubai’s Rera since it was created last year. The body, the first of its kind developed in the region, is responsible for licensing and managing Dubai’s stellar real estate market.

    It was created to improve transparency and trust in the sector and even resolved disputes until this responsibility was passed to a specially developed property court system in October.

    Rera is now also responsible for issuing public notices in newspapers when builders apply to cancel property investment projects in the emirate.

     

    Ajman plans real estate regulator

    The UAE emirate of Ajman plans to establish a regulatory body along the lines of Dubai's Real Estate Regulatory Agency (Rera) early next year to watch over property developments.

    The new body will be responsible for regulating and managing the emirate's property sector, which will include the enforcement of an escrow account law, a system under which all money collected by developers from buyers is used solely for the construction of a project. The escrow regulations form part of Ajman's property law, which was introduced in June

     

    Ajman real estate market - well protected

    Ajman is “well protected” from the upheaval threatening other sections of the UAE real estate market, organisers of a top property event have said.

    DSL Exhibitors, which hosted the R&R Local Property Show in the emirate, said it would benefit from having a market calmer than the likes of nearby Dubai.

    The show was held last Thursday to Saturday at the Sheikh Zayed Center for Conferences and Exhibitions, Ajman University of Science and Technology. Over 40 agents and developers attended to show off thousands of new homes for sale in Ajman, Dubai and other UAE regions.

    DSL Exhibitors said: “Being well entrenched in the mid-market segment, Ajman is likely to continue to do well – particularly since real estate prices here have not swelled as they have due to speculator activity in Dubai. In that sense, the Emirate is well protected.“While industry insiders believe that there will be an impact of the global financial crisis even on this market, it is expected not to be as severe as elsewhere.”

    Organisers also reported a positive response from companies appearing at the show, saying most were confident of Ajman’s ability to attract buyers of mid-priced investment property.

    Dr Salem Al Shafiei, director of the Dubai Real Estate Institute (DREI), said at the event:“The UAE real estate sector is on the right track, evolving and maturing into a more dynamic industry.”

     

    Aqaar's Ajman One Phase 2 breaks ground

    Aqaar LLC, one of the prominent and leading real-estate and property development companies based in Ajman, has broken ground on Phase 2 of its maiden project Ajman One, a fully-integrated business and hospitality complex.

    The Dhs75m ($20.4m) enabling work contract has been awarded to Ajman-based Piling Tech, with mobilization already commenced by the firm.

    Ajman One's Phase 2 consists of three office towers called Apex Business Towers. The towers will house 640 offices, with state-of-the-art meeting rooms and facilities, cutting-edge equipment and Wi-Fi hotspots. A first-of-its-kind Ajman One Convention Centre will be a key venue for meetings and events and a four-star business hotel called Ajman One Hotel will also have serviced apartments.

    Rami Dabbas, CEO of Aqaar and Head of Real Estate Development, ADIA, said, 'Ajman One Phase 2 is the first commercial hub of its kind in Ajman, and is envisaged to become one of the top business hubs in the area. With its business-friendly regulations, location in Ajman's newest free zone - the Ajman One business district - and proximity to Dubai International Airport, Sharjah International Airport and four world-class ports, Ajman One will be the ideal base for investors and businesses.'

    The business hub's convenient accessibility to regional and global markets will certainly attract ready investors and businesses as well as stimulate the local economy by generating jobs for the local workforce. It will also enhance Ajman's potential as a business and commercial destination.


    Ajman Marina prepares infrastructure for big projects with Dhs3bn

    Ajman continues to pave the way for big real estate projects to be developed in the emirate by continuing to execute various infrastructure projects, including road networks, and water and drainage systems.

    The current total cost for these infrastructure projects is Dhs408m, and it is expected to cost a further Dhs4bn in the future, according to an official from the Municipality planning department.

    Speaking of the situation, Abdullah Al Dehaim, Deputy CEO of Ajman Marina, said:

    'The future of the Ajman real estate sector is bright, thanks to the strategies that the authorities of Ajman follow, through which the emirate provides support for investors and businessmen. This has had a positive influence on economic and architectural activities in the emirate, which has helped attract more investors, and has even resulted in excellent quality projects that will be developed in the medium and short term.'

    'The investment value of the 25 hectare, multi-purpose Ajman Marina project, for example, is approximately Dhs3bn. The project will be available to all nationalities, according to Ajman freehold policy. Real estate data for 2007 suggests that non-UAE nationals will take advantage of this to invest in the Ajman Marina, as has been the case with other projects in the emirate. Ajman's freehold policy is one of the reasons that the emirate has risen to a position of strength in the UAE real estate market, which is dominated by Abu Dhabi and Dubai, and is currently ranked third behind these two emirates with regard to investment value and number of new projects announced.'continued Al Dehaim.

    Ajman's position as the third strongest emirate with regard to real estate was announced shortly after the launch of six large projects in the emirate, which have a total cost of Dhs40.8bn and are more than 10% of all real estate projects in the UAE. The cost of these projects could rise to Dhs120bn by end of this year, particularly as investors flock to buy lands from the projects.

    Ajman Marina Management has recently taken several important steps, including employing new management staff to coincide with the start of project infrastructure works, and contracting China Harbour Engineering to develop the Marina's infrastructure at a cost of Dhs150m. Ajman Marina Management has also contracted Mouchel to act as development consultants for the project.

     


    Investors alerted as Ajman property prices are tipped to soar..

    The price of property in Ajman is expected to rocket following the introduction of new property laws in the emirate state.

    In June 2008, His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, issued Amiri Decree No 7 and 8, 2008, to regulate the emirate’s land and properties sector.

    The new legislation, aimed at strengthening confidence in the real estate market, will allow foreign nationals to purchase freehold land, as is the case with Dubai property. Another new law will ensure property developers open an escrow account with a bank before being allowed to launch a new project, protecting the investment and ensuring projects are completed. Property developers will also be responsible for maintaining the project for 10 years following handover.

    Billions of dollars are currently being pumped into the Ajman property market; prices have jumped from Dh350 per square foot to nearly Dh500 during the last six months, as investors look to capitalise on Ajman’s growing housing sector.

    Real estate industry professionals say a property boom is under way in the Northern Emirates, with prices of Ajman property likely to rise by between 60%-100% in the next six months.

    Zuber Mohsan, CEO for Dubai-based sandcastles-property.com, said: "Property prices in Ajman are on a par with Dubai prices five years ago, with Dubai property currently costing up to six times that of similar property in Ajman"

    "We expect property prices in Ajman to double within the next 6-12 months, and could, over the next few years rise by as much as 250%. If you are looking for a strong UAE property investment, then property in Ajman should be right at the top of your list, added Mohsan"

    Ajman is the smallest of the seven emirates and is located north of Dubai, less than 30 minutes drive from Dubai’s international airport.


    The Case for Ajman..

    Roger Wilkinson writes numerous articles on Ajman for various local & international papers and property magazines as well as a Regular column for The Britain in Business Magazine, a publication produced by the British Business Group of Dubai and the Northern Emirates.

    Having operated in the Northern Emirates Real Estate industry since 1998, I first wrote about the Ajman Freehold Property market in the Summer of 2004 edition of Britain in Business. Re-reading that article recently I now have a better understanding why buying property in the UAE is described as speculative ! Since then, we have doubled our staff, twice, and opened another office in Ajman.

    Back in 2004 and even up to the Summer 2007 if you told me the floor and flat number of any project in Ajman, I would be able to rattle off the number of bedrooms, the gross area, the original price per sq ft, the current market price as well as describe the floor plans and views from that particular flat. My point is the Ajman Property market was a lot smaller a little time go ( but was still thriving. )

    As we are all well aware Dubai has experienced a phenomenal amount of Real Estate growth and it was inevitable that this would 'overflow' to the Northern Emirates to cater for the demand as well as offer an alternative lifestyle away from the bustling city, of which some may say, the way Dubai used to be !

    Ajman, Umm Al Quwain & Ras Al Khaimah are all 'riding the wave' of Dubai as well as offering the un spoilt white sandy beaches to go with that wave.

    This has attracted the attention of the Developers and the Buyers alike  that has contributed to growth of the Northern Emirates and the continuous improvement of the infrastructure. What once was UAE’s best-kept secret has now almost become common knowledge but there is still time to get on the UAE property market wagon with some great opportunities in the Northern Emirates.

    So exactly how many towers are there now in Ajman ? I would need more time to work that one out, and once I had, I may need to start again to take into consideration the ones that started whilst I was counting the rest.

    All the projects in Ajman are Freehold. The first were all in down town Ajman – the CBD and surrounding suburbs. Then the 5 km stretch of Emirates road that is in between Sharjah and Umm Al Quwain became the focus. Now, before I go on, I remember when people used to say The Arabian Ranches were in the middle of no- where.

    Emirates City was launched in the first quarter of 2007 consisting of 72 Towers. The towers will be surrounded by lakes and green parks, as well as having a shopping district, mosques, five star hotels, educational and medical facilities.

    The City was soon supersized to accommodate an additional 24 Towers, and then, for the first time in Ajman, private investors & independent developers could purchase the land ( from the Government ) and develop the same for freehold resale. That’s when things started hotting up and subsequently additional city’s have been launched with more in the pipeline, each city consisting of anything from 20 to 100 Towers, 20 – 55 floors each, 14 – 18 apartments per floor, you do the maths ! Mamooka City, Awali City, Rashid City, Aqua City, Tiger City, Ajman Boulevard to name some.

    And then there are the Town House and Villa projects, Ajman Uptown, Green City and Ajman Escape. Ajman Escape are independent villas in Equestrian settings with a swimming pool, a place to park your Mercedes and room for a pony !

    Moving closer to the sea & corniche, Ajman Marina & Al Zawra City, are yet to be launched but are projects to look forward to. I will elaborate and focus on more projects in Ajman in the next edition of BIB.

    As well as the Freehold purchases, there are some impressive apartments for Rent. Al Shaali Tower, for example, is beachfront, 35 floors high, 35 steps from the sea and 35 km’s from Dubai, with some impressive views from the spacious 2 & 3 B/R Apartments, and a very reasonable annual rent.

    Detailed information, including floor plans, prices, payment schedules and progress pictures are available on the web site - www.AjmanProperty.com

     

    Back in May we posted an article about the Ajman property market and how things are heating up in this smallest of the seven UAE emirates. As it turns out, our hunch was correct. Ajman has since heated up considerably and with neighboring Dubai becoming more and more expensive and unaffordable for many, Ajman has been the emirate of choice for many investors and developers as of late.

    Therefore we will cover the Ajman property market over a three part post series to give you information on investor strategies, property prices, infrastructure, the newly reformed Ajman property law and where all the action happens right now.

    Once our series is complete, you should have a fair estimate of whether this small emirate is the place for you to spend your investor dollars or not.

    Ajman - the heat is on

    Right now, the Ajman market is booming after gradually climbing three to five percent per month over the past two years. In 2008 alone, Ajman property owners have seen appreciation of 40 percent.

    Despite this sizzle, the secondary property market has still not taken off in the emirate. This is mostly due to the fact that a lot of developments are still being built. The Ajman government is also investing a considerable amount of dollars into renewing the aged infrastructure to keep pace with all the newly invested developments.

    With a maturing market, the government is also set to improve regulations for developers to ensure investors are protected against bankruptcies. New developers have to have enough venture capital and be familiar with the market to be approved. Smaller developers have undermined the big companies in recent years which caused some aggravation and an unstable market as prices per SQ. FT were all over the place.

    Currently they range anywhere from Dh400 per sq ft. to Dh650 per sq ft. But big player Developer Chapal is already planning to increase those prices after Ramadan to around Dh700 to Dh750 per sq ft.

    This gives investors a two month (and a bit) window in which they can cash in even more, before those prices are being raised.

    What to buy?

    As far as property is concerned, right now, studios are on fire. They are amongst the fastest moving properties in Ajman followed closely by 1 Bed room apartments. Many small families prefer to live in these smaller properties because escalating rents make it challenging to finance accommodation.

    Currently, the return on investment on studio buys is around 50 to 60 percent per year.

    To buy or not Dubai?

    Many Ajman investors work in Dubai. They chose to buy in Ajman because of Dubai’s exuberant market prices and the close proximity to Dubai makes it a cinch to travel to and from work. This is perhaps the biggest reason why Ajman has flourished so much over the last two years.

    As the Dubai market was heating up, smart investors were looking close-by to save on cost and discovered Ajman in the process.

    What next?

    If you are interested in the Ajman market, please keep an eye out for our next installment in this series. We will cover the Ajman property law and how the law has recently changed to benefit investors not so long ago.

    One thing is for sure. This little emirate of 100,000 is fast expanding with big hopes and plans. Demand for residential towers as well as commercial infrastructure and we have no doubt that right now, there is money to be made in Ajman.

     

    Aqaar Properties announces Phase 2 of AED2.7 billion 'Ajman One'

    Ajman, UAE, 23rd September 2008: Aqaar Properties LLC, the real-estate and property development company based in Ajman, is revealing two projects at this year's Cityscape Dubai which will be held between 6-9 October at Dubai International Convention and Exhibition Centre (DICEC).

    The company will launch Phase 2 of its maiden project, AED2.7 billion 'Ajman One', the premier residential, commercial and hospitality complex and will also unveil Aqaar's inaugural luxury project, which will be the first waterfront development in Ajman.

    "With the launch of Phase 2 of 'Ajman One' and a new luxury development soon to be announced, the emirate of Ajman is entering a new era of exciting growth and progress. Ajman is transforming from a quiet emirate into a vibrant and progressive tourism and business destination," said His Highness Sheikh Rashid bin Humaid Al Nuaimi, Chairman, Municipality and Planning Department of Ajman.

    As the first commercial hub of its kind in Ajman, Ajman One - Phase 2 will attract ready investors and businesses as well as stimulating the local economy by generating jobs for the local workforce.

    Phase 2 is strategically located in the heart of Ajman's newest free zone - the Ajman One business district. It is also minutes away from Dubai International Airport, Sharjah International Airport and four world-class ports, enhancing Ajman's potential as a business and commercial destination, by providing convenient accessibility to regional and global markets.

    Ajman One's Phase 2, as an integrated commercial and hospitality complex, consists of three freehold office towers, a convention centre, and a four-star business hotel with serviced apartments.

    The three commercial towers, called Apex Business Towers, will house 640 offices, showcasing state-of-the art meeting rooms and facilities, cutting-edge equipment and Wi-Fi hotspots, which will enable professionals the flexibility they need to efficiently conduct business. With Towers One and Three reaching 27 levels and Tower Two with 26 floors, a variety of office sizes and floor plans are available. Office sizes vary, starting from 120m to 140m, with the largest space being 175m to 202m. There are six floors of undercover parking with over 1000 individual spaces.

    The Ajman One Convention Centre is the first of its kind in the emirate and will be a key venue for meetings and events. It provides a full range of meeting spaces, from small rooms to an auditorium, as well as foyer areas and additional spaces which can be adapted for use as an exhibition space or pre-dinner function venue. The centre will also offer a vast array of entertainment and cultural activities for the community.

    The Ajman One Hotel will set the benchmark for the hospitality industry in Ajman, offering highly personalised service. Both hotel rooms and serviced apartment options are available to guests. The hotel is designed in a fresh architectural style and offers unsurpassed views of the coastline, with beach access just a short walk away. Clients and business partners will be able to combine business with pleasure in a pristine, tranquil environment.

    "Under the visionary leadership of His Highness Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, the emirate is now experiencing dynamic growth and Aqaar is at the forefront of Ajman's present transformation. The company knows it is the right time to set new directions in areas of outstanding investment potential and, despite much speculation, Aqaar's new waterfront development has been something of a closely guarded secret," said Mr. Rami Dabbas, CEO of Aqaar Properties LLC.

    The ultra-deluxe development is planned to cater to the high-end market. Fashioned in a style reminiscent of marina living, this new development will be the ultimate in 'get-away' luxury and will also boast seven high-rise towers, a luxury hotel, exclusive residences, a souk, a luxury health spa, a mix of lavish retail shops, al fresco dining with views of the beach and a range of adventure activities. Situated in an exclusive enclave at Ajman beach, it is sealed off from the ordinary world, offering an intimate, private and relaxing sanctuary to guests and residents. The new development will offer hospitality experiences for the most discerning travelers by delivering distinct experiences immersed in culture, heritage and natural beauty.

    "Aqaar will commence development of premium projects that cater to the high-end market, providing investments with high value returns. It will continue its focus on creating prestigious tourism initiatives for Ajman," he concluded.

    Further details of Aqaar's new luxury development and Phase 2 of 'Ajman One' will be revealed at the company stand (RB10) at Cityscape Dubai in DIEC- Sheikh Rashid Hall.

    About Aqaar:
    Aqaar - which translates from Arabic as 'Property' - was formed in 2006 as a private company in association with Ajman Development and Investment Authority (AIDA). Aqaar will spearhead the expansion of Ajman into a successful tourism and business hub. The organisation will develop a number of projects to support AIDA's mission of economic diversification.

    Aqaar, launched with an initial paid-up capital of AED 250 million (US $68.75 million), manages and creates property related investment opportunities and offers full support for both regional and international investors.

    Aqaar's long-term vision is to expand its influence outside its home emirate and beyond UAE shores.

    About Ajman:
    Ajman lies on the northern shores of the Arabian Gulf and forms one of the seven emirates that make up the United Arab Emirates. The emirate covers an area of 259 square kilometres comprising 16 kilometres of coastline and three distinct geographical regions in terms of topographical features which are Ajman City, the Masfout region and the Manama region.

    Ajman lies just 20 minutes drive north of Dubai International Airport, and has the fastest growing population of all the emirates. The government has taken many steps in recent years to implement a solid infrastructure, and has succeeded in developing certain sectors of its economy with a growing free zone industrial area and a strategically located port.

    With the launch of freehold developments in Ajman, the real-estate sector has experienced increased activity due to competitive pricing and its proximity to neighbouring emirates Sharjah and Dubai. The government's efforts in improving accessibility to the emirate will further fuel real-estate and tourism growth over the coming years.

     

    Property law and infrastructure projects  attract  realty investors to Ajman  

    The smallest of all seven emirates of the UAE, Ajman is witnessing the maximum activity in the real estate  sector partly due to investor-friendly property laws and partly due to affordable projects. According to latest studies, the investment in Ajman's property sector has now exceeded the AED 400 billion mark. In the year 2008 itself, the emirate has witnessed property price appreciation of almost 40%.

    Property Law
    Ajman is the second emirate after Dubai to introduce freehold property as early as in 2002. Finally, the law has been implemented in the emirate, boosting investor confidence in its real estate sector that has witnessed remarkable growth over the last few months. HH Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, issued Amiri Decree No 7 and 8, 2008, to regulate the emirate's land and properties sector. The decree comprises 34 articles that legalize 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. 

    Freehold Property in Ajman
    The law allows non-GCC developers and buyers to own freehold land and property in designated areas determined and approved by the ruler. Apart from GCC nationals, other expatriates could obtain property on a freehold as well as 50-year leasehold basis that is renewable in areas designated by the ruler.

    Role of Land Department
    According to the law, the Department of Land and Property will regulate the sector, survey areas, approve the land map and the fees for the services provided by the department and register all properties. It is solely assigned to register property rights and long-term leasing contracts.

    Inheritance Law
    The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. No dealings will be admitted unless registered.

    Security for Investors
     Dubai's Law No. 8 of 2007 on Guarantee Accounts of Real Estate Development (Escrow Account or Trust Law) has significantly contributed in streamlining property purchases in the emirate. In the similar lines, Ajman has introduced the bank guarantees to safeguard investor's interest. 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 5 per cent of the project value will be frozen and will not be released until completion of construction of the project. The developers will be responsible for maintaining the project for 10 years following handover. 

    Infrastructure Development Projects

    In an effort to evolve as a world class city, Ajman is investing on the development of its infrastructure. The value of infrastructure projects in Ajman has touched AED 1.4 billion in 2008. The infrastructure projects will support the speeding up of real estate development in the emirate.  

    Sewerage System
    The government of Ajman has allocated AED 800 million for the sewerage system. The new sewerage system is set to enhance Ajman's economic development and significantly improve the health and environmental standards in the emirate. It will also help to lengthen the lifespan of buildings in the emirate and lower maintenance costs through the environmental improvements.

    Road Network
    The Ajman government plans to spend AED 3 billion over the next three years to develop the emirate's roads. There are more than 12 proposed projects worth AED 408 million concerning road development and improvement in Ajman to be completed by the end of 2011. The projects include widening and lengthening of several roads, construction of bridges and providing additional road lighting.

    Electricity
    In order to bolster its power segment, Ajman has signed AED 7.34 billion deal with Malaysian Mining Corporation (MMC), Malaysia-based power producer, which would bring Middle East's first coal-fired power plant of the region into the emirate. It would generate one gigawatt of electricity as early as in 2012. Two other power plants to be built by the Federal Electricity and Water Authority (FEWA) in Ajman will begin operating in the next few months in order to supply electricity to the existing real estate developments until the MMC plant is commissioned.

    Airport
    Ajman International Airport worth AED 12 billion will shortly take shape in Ajman to further enhance its business potential. The construction of the airport is set to commence in the second half 2008 and to start operations by 2011. The airport, spread over more than 60 million sq ft of area located 3.5 km from Al Manama, will be built by a consortium of private developers.

    The airport will accommodate commercial aircraft with a capacity of 1 million passengers a year rising up to 10.4 million by 2046, as well as cargo of at least 400,000 tonnes and corporate aviation among other infrastructure capabilities. Several residential and commercial properties will be developed adjacent to the airport.  

    Public Transport
    Ajman is all set to launch a low-cost taxi and bus transport system as part of its AED 1.5 million project that will service two fixed routes for a nominal fee. The project will be implemented in two phases. The first phase will see the operation of 6 taxis and 4 buses from Mushairif intersection to Lulu Hyper Market, through the City Centre, the University Roundabout, Al Gerf Industrial Area and the emirate's downtown.

    The second phase will connect the Ajman town centre near Al Kuwait Hospital to the Industrial area, passing the old Passport Building, Galfa and Al Humaidia bridges and the vegetable market. Extra vehicles will be launched during this phase, including more trips to Sharjah. Plans are also afoot to extend the service to Umm Al Quwain and Ras Al Khaimah.  

    Hospitality Projects
    Ajman boasts of a tranquil and serene environment, thereby enhancing its tourism potential. Due to tremendous rise in tourist flow to the emirate, Ajman has announced major tourism infrastructure projects totaling AED 5.55 billion. Two of the major hospitality developments in the emirate are the AED 3 billion Ajman Marina and AED 50 billion Al Zorah.

    Ajman, being the third largest property market in the UAE, has all the characteristics to woo the potential investors. According to the Ajman Chamber of Commerce and Industry, over 33% of development projects in the emirate are owned by foreign nationals as against the 11% in other emirates
     

    Asian investors crowd Ajman real estate sector

    As Gulf region is going through a real estate boom, in the sleepy emirate of Ajman property business is at an all-time high. Ajman is the smallest of the seven emirates and the second emirate, after Dubai, to throw open its freehold property sector.

    To support the massive real estate boom, the Ajman government is also implementing a $1.4-billion infrastructure plan to secure investor confidence in the emirate of UAE.

    There is $2 trillion worth of upcoming projects in all sectors in the Gulf Cooperation Council (GCC), according to market estimates. A humungous $330 billion of this is reserved for civil construction projects. Ajman is also immensely benefiting from the Asian real estate developers, especially from Pakistan, coming to the emirate in large numbers.

    Ajman Real Estate News from GoWealthy, 17 August 2008


     

    Escape Breaks Ground: Awards contract to Kazarooni Contracting Company

    Earth moving work has begun at the Escape equestrian community site in Ajman, thus marking the development's official ground breaking. The contract was awarded to Kazarooni Contracting Company of Ajman and earthwork is expected to take 75 days, after which villa construction will begin on the 8.2 square million foot site located off the Emirates Road near the Ajman and Sharjah border.

    “The technical and engineering timelines for Escape are on track and on schedule. Villa construction will start after summer, and the project consulting team is fully dedicated to this project,” said Anwer Sher, General Manager Escape LLC.

    “From a retail point of view, we have exceeded our sales expectations, and almost all of the villas and Saddle Homes at Escape are sold out. The sales response demonstrates that we are offering an attractive lifestyle mix as well as superior finishes and designs” he added.

    The 200 acre exclusive development offers a variety of residential dwellings, over 500 villas and 150 Saddle Homes which include; moderately priced two bedroom duplexes and low rise apartments. Within the community is the 150 room equestrian -themed Resort at Escape, the HoofbeatZ™ Clubhouse, as well as a full range of equestrian facilities and several multi-purpose sports and riding arenas. With almost fifty percent of the land dedicated to green, landscaped, open space and paddocks, Escape promises its residents a healthy and outdoors lifestyle unique to the region.

    Conceptualized and developed by Equine Management Services, one of the world's leading equine solutions company, Escape is scheduled to open at the end of 2010. The apartments at Escape are set to be released within the next two months.

    Escape is a 200-acre Ajman-based equestrian themed community located on the Emirates Highway, on the Ajman- Sharjah border. The project's concept creator and equine architects is Equine Management Services, and the Concept Architect is Donald H Green Studio. Quantity Surveyors are De Leeuw Middle East; the project is master planned with Infrastructure by Hyder Consulting. Hill International is the Project Manager for Escape. AJ Design are the architects for the Residences at Escape, and flooring and fixtures are supplied by Zoralco International.

    Ajman property boost following metro extension proposals

    Proposals to extend the Dubai Metro to neighbouring Ajman are currently being discussed. The plans, still in the early stages, would be welcome news for investors who own properties in Ajman.

    According to the proposal, the metro will pass through Emirates Road to Al Corniche in Ajman. From there it will go to Al Zawra and then onto new investment areas currently under development.

    Sheikh Rashid bin Humaid Al Nuaimi, Chairman of Ajman Municipality and Planning Department has stressed that the proposal is only in discussion stage and many considerations still have to be made before anything is finalised.

     

     

    Ajman to build Gulf’s first coal plant

    Tamsin Carlisle

    AJMAN // Ajman has signed a US$2 billion (Dh7.34bn) deal with MMC, the Malaysian power producer, to build the Gulf region’s first coal-fired power plant, one that could start generating one gigawatt of electricity early in 2012.

    The agreement, reported by the official WAM news agency, highlights the critical power shortage faced by the UAE’s northern emirates, where commercial and residential property projects have encountered major delays over connections to the region’s electricity grid.

    Sheikh Rashid bin Humaid Al Nuaimi, the chairman of the Department of Municipality and Planning in Ajman, said the project’s aim was to provide enough electricity to property projects planned for the emirate in the near future. Two other power plants to be built in the next few months by the Federal Electricity and Water Authority could supply the developments with electricity until the MMC plant is commissioned, he said.

    Although Fujairah has also studied the possibility of building a coal-fired plant, Ajman is the only emirate to have committed to such a project.

    A big drawback of coal-fired plants, especially in areas hoping to attract tourists, is that they are generally unsightly and polluting. In addition, unless they incorporate costly technology to capture carbon dioxide for underground storage, they vent more greenhouse gas emissions to the atmosphere than any other means of producing electricity.

    A further drawback for the region in general is a lack of coal supplies. The closest source of imports would be India or South Africa. Nonetheless, several other Gulf states including Saudi Arabia, Oman and Bahrain have also been assessing coal-fired power generation to address the increasingly severe electricity shortages afflicting every GCC country except Qatar.

    Burgeoning populations and rapid industrial expansion in the region have been driving up electricity demand much faster than forecast before soaring crude prices triggered a regional economic boom. Most oil-producing Gulf states have not developed their often substantial gas reserves fast enough to keep pace with increasing domestic demand, especially from the power sector.

    Qatar, the exception, has forged ahead with development of the world’s biggest gas field, located off its coast. While making domestic gas supply a priority, the emirate has also become the world’s leading exporter of liquefied natural gas (LNG).

    To address the worsening regional power crunch some Gulf states, including the UAE, are considering building nuclear plants. But nuclear programmes take years to develop, and the UAE does not expect its first atomic power plant to be completed until at least 2016.

    Around that time, the emirate of Abu Dhabi, which produces 90 per cent of the UAE’s oil and gas, also expects to bring at least one major new gas project on-stream, tapping the Shah sour gas field that Abu Dhabi National Oil Company agreed to start developing with ConocoPhillips.

    But construction of Ajman’s coal-fired plant should take only 40 months, WAM said.
    Under the terms of the deal, MMC would finance construction and operate the plant for 20 years, sharing profits with Ajman.

     

    Private projects to meet utility demand in northern emirates

    By Saifur Rahman, Business Editor

    Dubai:  A number of private power and utility projects for the northern emirates are expected to be approved by the federal government in the coming months that could help meet soaring demand driven by massive housing projects in Ajman, government sources said.

    Last year, the Cabinet decided to allow private utility contractors to develop power generation and water desalination projects in the northern emirates, under the supervision of the Federal Electricity and Water Authority (Fewa).

    "As per the cabinet decision, Fewa is promoting private investment in utilities and this will continue in meeting the increasing demand in the sector," Abdullah Al Ghasyah, executive director of Supply at Fewa said in a statement, responding to Gulf News queries.

    Another government source said some international companies have already expressed interest in developing utility projects in the northern emirates.

    "The government is yet to take any decision on them. However, once approved, these projects could meet the rising demand for power and water in the northern emirates," the source said.

    Al Ghasyah said Fewa is committed to a minimum eight per cent annual growth in power and water demand, although private sector officials estimate the emirate's GDP growth at 27 per cent and population growth at 18 per cent currently.

    By the second half of 2009, a number of towers will be ready on either side of the Emirates Road in Ajman where residents are expected to start living in their freehold homes.

    Foreigners permitted to own Ajman land

    LAW CHANGE: Ajman has introduced a new law allowing foreigners to own freehold land in the emirate for the first time. (ITP Images)

    Ajman has introduced a new law allowing foreigners to own freehold land in the UAE emirate for the first time.

    The Amiri Decree No. 7 and 8, 2008 was issued by Ajman ruler Sheikh Humaid Bin Rashid Al Nuaimi in order to regulate the emirate’s real estate sector, UAE daily Gulf News reported on Sunday.

    Billions of dollars are being pumped into Ajman’s property sector, where prices have jumped from $95 per square foot to nearly $136 during the last six months.

    Ajman issues new realty law

    By Bassma Al Jandaly, Staff Reporter
    Published: 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.

    Ajman Property on the Rise

    WEBWIRE – Friday, June 13, 2008

    Unspoilt white sand beaches, warm turquoise waters, five star hotels, international restaurants and a booming property market, Ajman, the smallest of the seven Emirate states, is currently attracting a lot of interest from savvy property investors looking for an alternative to the Dubai property market.

    With a population of about 80,000, Ajman is just 30 minutes drive from Dubai’s international airport. Holiday companies such as Kuoni have recently added Ajman to their brochures, offering stays at the five star Kempinski hotel.

    The largest new development in Ajman is the recently announced Al-Zorah project, a new ‘city within a city’ which is currently being developed in a joint venture between Solidere Management Services and the government of Ajman at a cost $15billion.

    The master plan for the project includes residential buildings and villas, a commercial office district, marina, golf course, entertainment projects, hotels, hospitals and schools. A highway connecting the development directly to Emirates Road will also be built, in order to allow investors in Al Zorah to commute to the other Emirates. The project is currently under development and is scheduled to be finished over a 16 year period.

    Rami Dabbas, head of real estate development, Ajman Investment & Development Authority, CEO of Aqaar Properties, said: "We are trying to recreate another Monaco. The project will spread across an area of about 10 million square metres of existing land.

    "We are not reclaiming any land and even if we do, it won’t be much, as we have enough space to develop. Al Zora is definitely going to put Ajman on the map as a world destination"

    Sandcastles-property.com, based in Dubai, has seen a 42% increase in enquiries for Ajman property during the first half of 2008. "For property investors looking to get into an area at ground level, Ajman property offers great value for money and is an excellent alternative to buying Dubai property" Said Zuber Mohsan, CEO for Sandcastles.

    "We currently have a number of properties for sale in Ajman, but when the Al-Zorah project is up and running we expect both interest and prices of Ajman property to rise dramatically" added Mohsan.

    The Emirates has seen its population grow by almost 75% in the past decade. As a result, new property laws have had to be introduced in order to accommodate nationals and non-nationals. Ajman has led the UAE in this respect, being the first emirate to offer 100% freehold rights to non-nationals in 2004.

    Emirates Post ventures into Ajman property

    Dubai: Emirates Post Group has ventured into property development in Ajman by entering into an agreement with Ajman Sports and Cultural Club to develop malls and commercial buildings in Ajman on land owned by the club.

    Emirates Post will build malls and commercial buildings in three locations, with the Ajman club receiving a fixed percentage of the revenues annually for a 20-year period.

    At the end of this period, there is an option to either extend the contract or hand over the properties to the club.

    Cooperative push

    In addition, Emirates Post Group will offer space to the Ajman club to open supermarkets which will be run by the proposed Ajman Cooperative Society.

    The rest of the space will be used by Emirates Post Group to offer postal and non postal services, for activities of subsidiaries companies and for renting to outside companies.

    "Ajman has transformed itself into a booming investment destination, and real estate projects are yielding excellent returns. Ajman has developed good infrastructure and an investor-friendly business climate that is attracting investors from all over the world," Abdulla Al Daboos, president of Emirates Post Group, said.

    "Our partnership with Emirates Post Group will exploit the tremendous opportunities offered by the emirate of Ajman in the field of real estate. Ajman is a modern emirate boasting excellent location, low land cost and attractive investment climate," said Khalifa Saeed Al Jarrah, chairman of Ajman Sports and Cultural Club.

    Ajman Property

     
    Ajman properties have grown considerably since its launch in 2004 to include residential towers, commercial space and even villas.  With approximately 200 residential towers either completed or currently under construction, the Emirate of Ajman has ambitious plans for its small but growing real estate sector. 

    Ajman is the smallest of the seven Emirates in the UAE, covering a total area of 260 kilometres, yet with such excellent coastline, and easy access to the neighbouring Emirates of Sharjah and Dubai, it has been able to grow at an astonishing pace in the last couple of years.  The price of real estate in Dubai, the most popular of the Emirates, have pushed many potential property investors out of the market, with numerous projects of interest increasing in price several-fold from their initial launches.  Now more and more expatriates and even GCC Nationals are considering the option of buying Ajman property, and other Emirates venturing into freehold such as Ras Al Khaimah and Sharjah. 

    At present, the costs of buying a freehold property are much cheaper in Ajman over Dubai, with price per square foot in Ajman as low as Dhs40 initially to around Dhs150 right now.  This is excellent value for money in comparison to Dubai, where cost per square foot has risen steeply above Dhs800 and in the case of office space even Dhs 1500. 
    While there are still some affordable developments within Dubai, the sheer amount of demand for budget property is not being met by the freehold real estate sector, which is instead producing more high-end, luxury property.  As a result, buying an Ajman property is more affordable, and offers property investors a lot more for their money.  Apartments in Ajman also offer a great deal more space, due largely to the fact that the Emirate is less built up than surrounding areas. 

    With the Emirate of Ajman covering a large amount of coastline, owning a property here is an opportunity to own a residence that is close to the beach, spacious, and all for a fraction of the price of properties in Dubai.  The variety of projects currently underway in Ajman include Ajman Pearl, Ajman One, Falcon Tower, Emirates City, Corniche Tower, Up Town Ajman Villas, Rainbow Tower and Venice Tower.

    Ajman Bank claims IPO oversubscribed 85 times

    Dubai: Ajman Bank on Monday said its initial public offer (IPO) of 550 million of ordinary shares was more than 85 times over-subscribed.

    More than 211,000 UAE and non-UAE investors applied for shares in the offer, submitting approximately Dh48 billion for investment.

    The shares were priced at Dh1 each, with a minimum subscription of 2,000 shares. Details regarding allocation of shares will be made available in approximately two weeks following the auditing of all subscriptions received by the receiving banks.

    Following completion of the offer, the bank will apply for its shares to be listed on the Dubai Financial Market, and it is expected that trading in its shares will start during the second quarter of this year.

     

    Ajman is new property hotspot
    By Robert Ditcham, Staff Reporter
    Published: June 28, 2007, 23:33

    Dubai: Ajman may be the smallest of the UAE's seven states at only 260 square kilometres, but its property sector is one of the country's most active.

    Close to 200 freehold residential towers are either under construction or have been completed since the city's freehold property sector kicked off in 2004.

    With the possibility of 100 per cent ownership rights and guaranteed residency visas for buyers, the emirate has attracted strong investment from GCC nationals, expatriates and overseas buyers.

    "All of the northern emirates are witnessing major real estate development, but Ajman is possibly the most active in terms of construction," said Roger Wilkinson, managing partner of Northern Emirates Property, a Sharjah-based property leasing and management company, which runs the website Ajman Property.com.

    The city markets itself as a place to get away from busy city life, but getting away from Dubai's high rents seems to be a key reason for moving there. Average outright purchase prices are also significantly less - up to four times lower than in Dubai, said Wilkinson - and flat sizes tend to be bigger.

    Target

    Real estate companies are only able to offer affordable housing aimed at mid-income earners if they can keep their initial development costs down.

    Amir Ameen, director of Star Giga Establishment, said the land price in Ajman for his Dh700 million Goldcrest Dreams project was around Dh40 per square foot compared with about Dh150 in Dubai.

    At the project launch, the 1,600 apartments within the four building project started at Dh285,0000 for a one bedroom apartment and climbed to Dh416,000 for two bedroom apartments.

    Ajman's close proximity to Dubai is another plus point. The 35 kilometre drive can take as little as 20 minutes or more than two hours. New highway and rail connections are expected to shorten the journey.

    However, the emirate does not want to be considered merely a satellite town to house Dubai workers. According to Wilkinson, who has monitored Ajman's real estate development for more than 15 years, the emirate is attracting commercial, retail and hospitality investment, as well as improving its general infrastructure and boasting major banks and retailers.

    As amenities increase and transport links improve, prices invariably climb - good reason for investing now, say property agents. The city currently lacks mortgage facilities, but once these are introduced, buyers will be able to finance bigger purchases, which would in turn drive rates up.

    Average prices for freehold property are now Dh350-550 per square foot, says Wilkinson, but can be as high as Dh750-950 per square foot mark for more luxurious projects. Rents have gone up by 10-20 per cent since the start of the year, he added.

    Lisa Dale, head of Al Tamimi & Company's property department, said Ajman allows a maximum rent increase of 20 per cent after the first three years of a contract.

    Although the market is less mature than Dubai, meaning prices will continue to increase while the Dubai market eventually stabilises, there will always be a gap between the two, say major developers.

    "I'm sure prices will increase but they will never reach the level of Dubai," said Omar Ayesh, president of Sharjah-based private developer Tameer, which is developing Al Ameera Village in Ajman.

    "There will always be a gap because the standard of living, the infrastructure and facilities in Dubai are very high. You pay a price for the Dubai brand."


    Private developers show increasing interest

    Ajman's freehold property sector opened up in July 2004 with the launch of Al Naeymiyah Towers - a 15-tower development split into two phases.

    Purchase prices during the launch of the first phase were just Dh157 per square foot and increased to Dh180 per square foot for the second phase.

    Developed by the government of Ajman, which acts as a master developer for the emirate, the project has been completed - proof that the city can deliver major residential projects and a major confidence booster for property speculators and end users, said Roger Wilkinson, managing partner of Northern Emirates Property.

    Since then, projects including Rashidiya Towers, a complex of 11 buildings which sold for Dh220 per square foot on launch, have been delivered, while the nine-building Al Khor Towers development is scheduled for completion by the end of the year.

    Other major projects scheduled for delivery by 2010 include Horizon Towers, Falcon Tower, Ajman One and Corniche Tower.

    Although most of these are developed and financed by the Ajman government, some land plots have been snapped up by private developers.

    Star Giga Establishment last year launched a Dh700 million freehold residential property development at Paradise Lakes on the Emirates Road.

    Goldcrest Dreams will contain 1,600 one and two bedroom apartments and is scheduled for delivery in mid 2009.

     

    Beauty lies in the blind spot
    By Ulrike Lemmin-Woolfrey, Special to Explore

    Ajman, the smallest emirate in the UAE, is often overlooked when it comes to exploring this country.

    Covering only 260sqkm, and with a population of about 230,000, it is a far cry from Dubai — without the hustle and bustle and modern thrills and conveniences. And that is exactly where its appeal lies.

    Ajman is a quiet place where you can get away from it all.

    And, at the same time, there are some things to keep you busy as well — some free and some cheap, making it ideal for a day out with the family.

    The beaches in Ajman are never really crowded and most of them offer a mix of adventure, open spaces and privacy.

    Here's what you can do in Ajman:

    Visit the museum

    The main attraction at Ajman, its museum, is located in the small and picturesque fort Dowar Al Hosn, which used to be the ruler's residence until 1970. The museum houses an interesting archaeological collection found in nearby Mowaihat.

    It also displays scenes and items of traditional life, with plastic cows and donkeys that have live goats and chicken for company.

    Open from 9am-1pm, and 4pm-7pm in winter and 5pm-8pm in summer. Fridays 4pm-7pm, Saturdays 9am-1pm. Admission Dh4 for adults, Dh2 for children under seven.

    Dig deeper

    In 1986, workers laying new sewage pipes discovered a circular tomb of the Umm Al-Nar variety in Mowaihat. Work was halted and archaeological excavations unearthed some painted ceramic vessels, beads, copper tools and implements and the skeletal remains of the original inhabitants of the area.

    Go to the beach

    Ajman Corniche follows on from that of Sharjah and is the place for a stroll. You could grab a bite at one of the small restaurants and cafés overlooking the sea, hire a jet-ski, go quad-biking, head out for a swim in the sea or enjoy a picnic on the wide sandy beach.

    Although popular on weekends, the beach never seems to get overcrowded and has several bays that offer privacy.

    Watch dhow building

    Ajman's dhow yard is one of the most active in the region and builders still use traditional tools to craft the wooden boats. It is interesting to watch the builders at work.

    Go bird-watching

    On the salt-flats towards Al Hamriya on Shaikh Zayed Street, birds such as flamingos flock among the mangroves. You can drive your car along the water's edge, and try spotting a variety of birds in this outlandish terrain.

    Shop

    There are two main malls: City Centre has all the local favourites, such as Carrefour and a Magic Planet, and an array of smaller, independent shops and cafés. Then there is Safeer Mall, with all your usual favourites. The Iranian souq sells all sorts of household goods and the interesting Pink Palace sells kitsch and everything else for Dh9.

    Watch the fishermen

    Amid the dhows, modern boats and a couple of fancy yachts idling in the marina, fishermen go about their business, mending nets, cleaning fishing baskets and sorting their catch of the day. Seagulls accompany every new arrival and wait for leftovers while sparrows pick fishy remains from the nets.

    Head for the Outside Inn

    The Inn is at the entrance of Ajman Corniche next to the Holiday Beach Club and overlooks a quiet beach.

    A variety of beverages and excellent pub-food, such as chicken wraps and prawns in a basket, make it popular with expats, especially from Sharjah (if the number plates of vehicles parked in the vicinity are anything to go by).

    Masfoot and Manama

    The two enclaves of the emirate of Ajman can be found further inland: Masfoot lies some 110km southeast, near Hatta, and is known for its agriculture, yellow-flowering farfar trees and its colourful marble. Manama — meaning sleeping place — is 60km south off the Dhaid and Masafi highway, and has a small fort.

    Manama is famous for its stamps that were issued between 1966 and 1971, when it joined the UAE.

    Spot oddities

    On Quortabah Street, along the coastal route by the ruler's palace, there is a pavement with a signpost which says: 'Ladies Only Pedestrian Pavement'. Not much of a walk and the scenery is a little bleak, but as signs go, this is a little unusual. Then there are the traffic lights on the main junctions which count down the seconds left until the lights change colour, a very useful novelty; and the faux Buckingham Palace past City Centre on the way to the busy Ajman Cricket Club, where several games are on every weekend.

    UAE Property Guide

    Ajman is one of the seven emirates (sovereign states) that make up the United Arab Emirates (the UAE). Ajman is the smallest of the emirates with an area of only 260 square kilometres. The main city of the emirate of Ajman is also called Ajman or Ajman City to distinguish it from the emirate, and to avoid confusion. The emirate of Ajman is geographically located on the coast of the Persian Gulf between the emirates of Sharjah and Umm al-Quwain.

    Ajman was the third of the emirates of the UAE to allow foreign freehold ownership of property which has resulted in huge numbers of investors, both foreign and local, expressing interest in the emirate. This interest has, in turn seen the initiation of several property developments in the emirate to cater for this interest. Primary among them is an area known as New Ajman, an area of land along the Emirates Road. This area will contain many new developments and projects which have been envisioned by the ruler of the emirate Sheikh Rashid Al Nuaimi, with the chief development being The Emirates City. The New Ajman area and Ajman city in general is centrally located in the heart of the UAE, it is only a 30 minute drive to Dubai and a 20 minute drive to the Sharjah International Airport.

    The Emirates city development is a residential and commercial development consisting of 72 commercial and residential towers ranging from 20 to 50 floors. The development will be surrounded by two lakes and beautiful green parks as well as containing educational and medical facilities, mosques, five star hotels and a shopping district. Interest in the Emirates city development is huge, with several of the towers having already been fully sold.

    Al Ameera Village (which is also known as the Princess Village), is another of the freehold commercial and residential developments being constructed along the Emirates Road in Ajman. This development will consist of a shopping mall, commercial areas, a commercial tower, hotel apartments, as well as 41 residential buildings. The development will be fully landscaped with fountains, gardens, parks and a 500 metre long boardwalk. Al Ameera Village will house all of the amenities you would expect from a development of this standard including mosques, swimming pools, gymnasiums, just to name a few. The development also features ample parking and wide roads to make traveling and commuting around the village a pleasure. Al Ameera Village is expected to be fully completed by mid 2008.

    The National Centre for Real Investment Development Company has also built, and is constructing several residential towers for freehold ownership in various areas of Ajman City. The Al Naeyiyah towers project which consists of thirteen towers built in two stages was the first freehold residential development in Ajman City. The developers followed with the Al Khor towers that are built close to the Ajman Khor Creek, which are identical to the Al Naeyiyah towers. The next offering from this developer was the Al Rashidiya Towers constructed in the Rashidiya area of Ajman, these towers look similar externally to their other offerings but have a different internal layout.