2010 prediction for Ajman

[aki]

The thread for 2009 prediction for Ajman was interesting. We are close to 2010 (now Oct 2009). The prediction and inside news on the furture ahead for Ajman would be very valuable.

Many have invested and the developer and the government of Ajman seem to be failing. Myself - i invested in Frankfurt Residence where the development project was led by a famous German architect, Hendrik Hommel.

Kind regards

 

[paul66]

Emaar Chairman expects demand to exceed supply in 1 to 1.5yrs

Also...for the Western Countries, the British Media and those who wish Dubai to fail...He reiterates the fact that DUBAI IS PART OF THE UAE and help from Abu Dhabi is help from a brother NOT an enemy!

Here's the Video on CNBC...
Video - CNBC.com

 

[financier888]

Tough times ahead for Ajman

I wouldn't expect to see any sign of recovery in Ajman in 2010 or beyond - for the following reasons:

1) Ajman was marketed as a 'bedroom' community to Dubai, boasting a mere 25 minutes from Dubai Int'l airport. When the prices in Dubai skyrocketed, for many investors / buyers - Ajman became a viable alternative where you could own for 50% or less than in Dubai. (retail AED 300 to the peak last year of AED 450- 500)
Now that prices in Dubai have dropped 50% and may go down further - it's far less attractive

2) Another selling point that made Ajman attractive to many investors that intended to be end-users - was the Visa - that is out of the equation now. So, many of those buyers, who did in fact buy to establish residency - will no longer have much interest. (India, Pakistan, Iran, Russia...)

3) Ajman municipality has lost much credibility with investors and perceived lack of a 'rule of law.' A master developer defaulted on handing over the plots for several large projects - having not done the infrastructure work - because he used the proceeds to speculate on more land. The gov't canceled the project and then penalized the sub- developers 30% !!! Which was then passed on to the investors! Then offered other plots at inflated values above the current market! This action has been taken with total impunity. It begs the question, if the gov't can do this - what else can they do? Where is the protection for investors?

4) Although they established their own form of RERA - to date, it's not very effective and hardly what you consider as 'User Freindly'

5) Drive through Ajman - the main town - you will see dozens of buildings completed of close to completion. Some that were completed were not handed over because NO ELECTRIC! And this will be an issue for years to come. it is hardly a rich emirate (ever wonder about those projects in Ajman offering 'Lakes?' Where is the water going to come from to fill these 'Lakes?' They going to bring it in from sea across Emirates Road? Dig a well? oh well...)

6) Ajman Glut of inventory - there are tens of thousands of units completed in Town or soon to be ready. Many of those completed are empty. There is a HUGE glut of apartments completed and selling at bargain basements prices - IF they can find buyers which is harder than in Dubai. Many investors have locked into -off-plan sales within the last 18 months are that now 50% + higher than current market prices. You may think, 'Well in 2-3 years time, the prices will go up again - very, very doubtful. In Dubai? Maybe. Ajman - keep dreaming. The buyers / investors flocked there because Dubai was unaffordable for many - no longer the case. The other main reason they bought there was for the 'visa' - also no longer the case. Take away those two factors that contributed to the demand and then add the overall mistrust of the authorities and lack of consumer confidence - what do you have?

I am sorry to say, that many that have invested in Ajman will probably lose most of their money. As more and more developers will have no choice but to skip. The Ajman authorities may also like to see these developers default so THEY can try to grab those investors and convert them into buyers of their own projects. Serious conflicts of interest. My heart goes out to any honest developer that hoped to operate there.

There are always those, (including some of the brokers and speculators on this forum) whom will paint a rosy picture of Ajman and give you 1000 + 1 reasons why Ajman is great and 'NOW IS THE TIME TO BUY!' Don't believe it for a second. If you are serious in wanting to buy a RE Investment, even if you pay a little more, you'll be far more secure in Dubai that in Ajman which many have described as a 'Lawless Wild West' type of environment.

In addition, look at the cases where a project was offered as a 'freehold' then converted to a 'leasehold' !! Imagine, you purchased, been making payments and halfway through this bombshell is dropped on you, 'Sorry, it's a leasehold now... ugh.. - You should prepare yourself for more of this to come. Some are of the belief that the authorities would prefer investors to run away, throw-up their hands and never look back. This way, they can simply just pocket the money and have the last laugh.

Be very careful.

 

[paul66]

Ajman calls for overhaul of property visa regulations

Ajman calls for overhaul of property visa regulations

Emirates Busines 24-7, Sunday, October 11, 2009

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.

source: http://www.business24-7.ae/Articles/2009/10/Pages/Ajmancallsforoverhaulofpropertyvisaregulations.aspx

 

[verity]

I wouldn't expect to see any sign of recovery in Ajman in 2010 or beyond - for the following reasons:

1) Ajman was marketed as a 'bedroom' community to Dubai, boasting a mere 25 minutes from Dubai Int'l airport. When the prices in Dubai skyrocketed, for many investors / buyers - Ajman became a viable alternative where you could own for 50% or less than in Dubai. (retail AED 300 to the peak last year of AED 450- 500)
Now that prices in Dubai have dropped 50% and may go down further - it's far less attractive

2) Another selling point that made Ajman attractive to many investors that intended to be end-users - was the Visa - that is out of the equation now. So, many of those buyers, who did in fact buy to establish residency - will no longer have much interest. (India, Pakistan, Iran, Russia...)

3) Ajman municipality has lost much credibility with investors and perceived lack of a 'rule of law.' A master developer defaulted on handing over the plots for several large projects - having not done the infrastructure work - because he used the proceeds to speculate on more land. The gov't canceled the project and then penalized the sub- developers 30% !!! Which was then passed on to the investors! Then offered other plots at inflated values above the current market! This action has been taken with total impunity. It begs the question, if the gov't can do this - what else can they do? Where is the protection for investors?

4) Although they established their own form of RERA - to date, it's not very effective and hardly what you consider as 'User Freindly'

5) Drive through Ajman - the main town - you will see dozens of buildings completed of close to completion. Some that were completed were not handed over because NO ELECTRIC! And this will be an issue for years to come. it is hardly a rich emirate (ever wonder about those projects in Ajman offering 'Lakes?' Where is the water going to come from to fill these 'Lakes?' They going to bring it in from sea across Emirates Road? Dig a well? oh well...)

6) Ajman Glut of inventory - there are tens of thousands of units completed in Town or soon to be ready. Many of those completed are empty. There is a HUGE glut of apartments completed and selling at bargain basements prices - IF they can find buyers which is harder than in Dubai. Many investors have locked into -off-plan sales within the last 18 months are that now 50% + higher than current market prices. You may think, 'Well in 2-3 years time, the prices will go up again - very, very doubtful. In Dubai? Maybe. Ajman - keep dreaming. The buyers / investors flocked there because Dubai was unaffordable for many - no longer the case. The other main reason they bought there was for the 'visa' - also no longer the case. Take away those two factors that contributed to the demand and then add the overall mistrust of the authorities and lack of consumer confidence - what do you have?

I am sorry to say, that many that have invested in Ajman will probably lose most of their money. As more and more developers will have no choice but to skip. The Ajman authorities may also like to see these developers default so THEY can try to grab those investors and convert them into buyers of their own projects. Serious conflicts of interest. My heart goes out to any honest developer that hoped to operate there.

There are always those, (including some of the brokers and speculators on this forum) whom will paint a rosy picture of Ajman and give you 1000 + 1 reasons why Ajman is great and 'NOW IS THE TIME TO BUY!' Don't believe it for a second. If you are serious in wanting to buy a RE Investment, even if you pay a little more, you'll be far more secure in Dubai that in Ajman which many have described as a 'Lawless Wild West' type of environment.

In addition, look at the cases where a project was offered as a 'freehold' then converted to a 'leasehold' !! Imagine, you purchased, been making payments and halfway through this bombshell is dropped on you, 'Sorry, it's a leasehold now... ugh.. - You should prepare yourself for more of this to come. Some are of the belief that the authorities would prefer investors to run away, throw-up their hands and never look back. This way, they can simply just pocket the money and have the last laugh.

Be very careful.

HI

Is it Chapal master developer who defaulted on plots handovers in Emirate Lake Towers- Ajman ?
I invested there and your advice will be of help
If project was cancelled by ARRA can we get refunds ?
how to proceed with seeking refunds ?
Is going to court the only option ?
thanks
v

 

[financier888]

HI

Is it Chapal master developer who defaulted on plots handovers in Emirate Lake Towers- Ajman ?
I invested there and your advice will be of help
If project was cancelled by ARRA can we get refunds ?
how to proceed with seeking refunds ?
Is going to court the only option ?
thanks
v

There are several - but the ones that were 'quasi' govt' linked were connected to Mamooka, and the others.. (as listed in the news of 'projects canceled)

My suggestion would be to take it up with Arra as going to court will be expensive and time consuming and end-up being a waste of both! I wouldn't expect to see a refund - quite doubtful as no doubt, the money is gone!

ARRA may offer you another unit and perhaps deduct a penalty (30%) of what you have already paid - so you will have to think hard about committing to keeping making payments on another unit - especially if the one they offer you is at a highly inflated price!! tough choice - as to whether or not continue to throw away more of your hard earned money

good luck

 

[aki]

who are the ajman authorities

Thank you for this..it is most interesting analysis..
The anaysis here gives an impression that Ajman is a ghost town.

What is the current population of Ajman?

Is it not a breach of contract to developers and investors by the ajman authority to not build the electricity infrastructure? and the water infrastructure?

what are the complexities with regards to supplying sufficient water to Ajman? What sort of investment required? Who should invest?

Why did the authorities remove the visa scheme?

The authority in Ajman - who is it made up of? Why would you
describe Ajman as a lawless 'cowboy' state?

Who are the major investors in ajman?

 

[financier888]

Thank you for this..it is most interesting analysis..
The anaysis here gives an impression that Ajman is a ghost town.

What is the current population of Ajman?

Is it not a breach of contract to developers and investors by the ajman authority to not build the electricity infrastructure? and the water infrastructure?

what are the complexities with regards to supplying sufficient water to Ajman? What sort of investment required? Who should invest?

Why did the authorities remove the visa scheme?

The authority in Ajman - who is it made up of? Why would you
describe Ajman as a lawless 'cowboy' state?

Who are the major investors in ajman?

very good questions Aki!

What is the current population of Ajman?

Not really sure as there are many transient workers.. many have left!

Is it not a breach of contract to developers and investors by the ajman authority to not build the electricity infrastructure? and the water infrastructure?

YES! But... Sue the gov't of Ajman in an Ajman court! ?!?!?!?! Forget it!

what are the complexities with regards to supplying sufficient water to Ajman? What sort of investment required? Who should invest?

Investors for Utilities have come and gone. JV were announced in the papers with various MNC's - then the deals died.. Have no idea as the current status

Why did the authorities remove the visa scheme?

That was done on a FEDERAL level - the various Emirates used to have their own VIsa policies then they changed it to ONE = FEDERAL.

The authority in Ajman - who is it made up of?

Royal Family (of Ajman)

Why would you describe Ajman as a lawless 'cowboy' state?

An Apt description !

 

[verity]

AJMAN - Emirate Lake Towers

I wouldn't expect to see any sign of recovery in Ajman in 2010 or beyond - for the following reasons:

1) Ajman was marketed as a 'bedroom' community to Dubai, boasting a mere 25 minutes from Dubai Int'l airport. When the prices in Dubai skyrocketed, for many investors / buyers - Ajman became a viable alternative where you could own for 50% or less than in Dubai. (retail AED 300 to the peak last year of AED 450- 500)
Now that prices in Dubai have dropped 50% and may go down further - it's far less attractive

2) Another selling point that made Ajman attractive to many investors that intended to be end-users - was the Visa - that is out of the equation now. So, many of those buyers, who did in fact buy to establish residency - will no longer have much interest. (India, Pakistan, Iran, Russia...)

3) Ajman municipality has lost much credibility with investors and perceived lack of a 'rule of law.' A master developer defaulted on handing over the plots for several large projects - having not done the infrastructure work - because he used the proceeds to speculate on more land. The gov't canceled the project and then penalized the sub- developers 30% !!! Which was then passed on to the investors! Then offered other plots at inflated values above the current market! This action has been taken with total impunity. It begs the question, if the gov't can do this - what else can they do? Where is the protection for investors?

4) Although they established their own form of RERA - to date, it's not very effective and hardly what you consider as 'User Freindly'

5) Drive through Ajman - the main town - you will see dozens of buildings completed of close to completion. Some that were completed were not handed over because NO ELECTRIC! And this will be an issue for years to come. it is hardly a rich emirate (ever wonder about those projects in Ajman offering 'Lakes?' Where is the water going to come from to fill these 'Lakes?' They going to bring it in from sea across Emirates Road? Dig a well? oh well...)

6) Ajman Glut of inventory - there are tens of thousands of units completed in Town or soon to be ready. Many of those completed are empty. There is a HUGE glut of apartments completed and selling at bargain basements prices - IF they can find buyers which is harder than in Dubai. Many investors have locked into -off-plan sales within the last 18 months are that now 50% + higher than current market prices. You may think, 'Well in 2-3 years time, the prices will go up again - very, very doubtful. In Dubai? Maybe. Ajman - keep dreaming. The buyers / investors flocked there because Dubai was unaffordable for many - no longer the case. The other main reason they bought there was for the 'visa' - also no longer the case. Take away those two factors that contributed to the demand and then add the overall mistrust of the authorities and lack of consumer confidence - what do you have?

I am sorry to say, that many that have invested in Ajman will probably lose most of their money. As more and more developers will have no choice but to skip. The Ajman authorities may also like to see these developers default so THEY can try to grab those investors and convert them into buyers of their own projects. Serious conflicts of interest. My heart goes out to any honest developer that hoped to operate there.

There are always those, (including some of the brokers and speculators on this forum) whom will paint a rosy picture of Ajman and give you 1000 + 1 reasons why Ajman is great and 'NOW IS THE TIME TO BUY!' Don't believe it for a second. If you are serious in wanting to buy a RE Investment, even if you pay a little more, you'll be far more secure in Dubai that in Ajman which many have described as a 'Lawless Wild West' type of environment.

In addition, look at the cases where a project was offered as a 'freehold' then converted to a 'leasehold' !! Imagine, you purchased, been making payments and halfway through this bombshell is dropped on you, 'Sorry, it's a leasehold now... ugh.. - You should prepare yourself for more of this to come. Some are of the belief that the authorities would prefer investors to run away, throw-up their hands and never look back. This way, they can simply just pocket the money and have the last laugh.

Be very careful.

Hi Financier

thank you for your valuable advice over the time
I invested in Lake Signature in Emirate lake towers- Ajman
GR8 developers were never handed plot over by Chapal master developer
now GR8 stopped replying to me altogether. I have unsigned Contract from them with receipts for my payments. I am in UK
I think project was eventually registred with ARRA - but no sign of construction on site
As you say, court judgement is of no help, lawyers costs are prohibiting
I paid 20% of contract - painful loss- but not like others who paid 50% and more

I wonder if just doing nothing as yet and wait and see would be an answer at all ?
Perhaps Ajman will be forced to put proper regulation over the time ?
then obtain court judgement if no construction starts ?

My contract stipulates Completion ' not before Nov.2011 and not later than Nov.2012' which can be extended by 12 months, or by time of Force Majeure period

If unit is not handed over on Completion date full payment with interest charges calculated to-date is DUE BACK TO BUYER.
What do you think of it ?
Would visit to Dubai and chase GR8 help ?
I am considering other options to deal with them too
Your advice much appreciated
v

 

[reasonant]

very good questions Aki!

What is the current population of Ajman?

Not really sure as there are many transient workers.. many have left!

Is it not a breach of contract to developers and investors by the ajman authority to not build the electricity infrastructure? and the water infrastructure?

YES! But... Sue the gov't of Ajman in an Ajman court! ?!?!?!?! Forget it!

what are the complexities with regards to supplying sufficient water to Ajman? What sort of investment required? Who should invest?

Investors for Utilities have come and gone. JV were announced in the papers with various MNC's - then the deals died.. Have no idea as the current status

Why did the authorities remove the visa scheme?

That was done on a FEDERAL level - the various Emirates used to have their own VIsa policies then they changed it to ONE = FEDERAL.

The authority in Ajman - who is it made up of?

Royal Family (of Ajman)

Why would you describe Ajman as a lawless 'cowboy' state?

An Apt description !

Thanks financier. An Apt description indeed!

I have a feeling they will run out of electricity in 2010.

 

[SusieQ]

Ajman Investors

Sign up to the petition!

Ajman property investment nightmare - investors beware, be very aware!!

 

[Catherine4u]

Thanks financier. An Apt description indeed!

I have a feeling they will run out of electricity in 2010.

Well 2010 is here. We saw a little electricity shortage a few days back. What do you think for the rest of the year now? Will there be any such issue again?

 

[rkolinko]

I wouldn't expect to see any sign of recovery in Ajman in 2010 or beyond - for the following reasons:

1) Ajman was marketed as a 'bedroom' community to Dubai, boasting a mere 25 minutes from Dubai Int'l airport. When the prices in Dubai skyrocketed, for many investors / buyers - Ajman became a viable alternative where you could own for 50% or less than in Dubai. (retail AED 300 to the peak last year of AED 450- 500)
Now that prices in Dubai have dropped 50% and may go down further - it's far less attractive

2) Another selling point that made Ajman attractive to many investors that intended to be end-users - was the Visa - that is out of the equation now. So, many of those buyers, who did in fact buy to establish residency - will no longer have much interest. (India, Pakistan, Iran, Russia...)

3) Ajman municipality has lost much credibility with investors and perceived lack of a 'rule of law.' A master developer defaulted on handing over the plots for several large projects - having not done the infrastructure work - because he used the proceeds to speculate on more land. The gov't canceled the project and then penalized the sub- developers 30% !!! Which was then passed on to the investors! Then offered other plots at inflated values above the current market! This action has been taken with total impunity. It begs the question, if the gov't can do this - what else can they do? Where is the protection for investors?

4) Although they established their own form of RERA - to date, it's not very effective and hardly what you consider as 'User Freindly'

5) Drive through Ajman - the main town - you will see dozens of buildings completed of close to completion. Some that were completed were not handed over because NO ELECTRIC! And this will be an issue for years to come. it is hardly a rich emirate (ever wonder about those projects in Ajman offering 'Lakes?' Where is the water going to come from to fill these 'Lakes?' They going to bring it in from sea across Emirates Road? Dig a well? oh well...)

6) Ajman Glut of inventory - there are tens of thousands of units completed in Town or soon to be ready. Many of those completed are empty. There is a HUGE glut of apartments completed and selling at bargain basements prices - IF they can find buyers which is harder than in Dubai. Many investors have locked into -off-plan sales within the last 18 months are that now 50% + higher than current market prices. You may think, 'Well in 2-3 years time, the prices will go up again - very, very doubtful. In Dubai? Maybe. Ajman - keep dreaming. The buyers / investors flocked there because Dubai was unaffordable for many - no longer the case. The other main reason they bought there was for the 'visa' - also no longer the case. Take away those two factors that contributed to the demand and then add the overall mistrust of the authorities and lack of consumer confidence - what do you have?

I am sorry to say, that many that have invested in Ajman will probably lose most of their money. As more and more developers will have no choice but to skip. The Ajman authorities may also like to see these developers default so THEY can try to grab those investors and convert them into buyers of their own projects. Serious conflicts of interest. My heart goes out to any honest developer that hoped to operate there.

There are always those, (including some of the brokers and speculators on this forum) whom will paint a rosy picture of Ajman and give you 1000 + 1 reasons why Ajman is great and 'NOW IS THE TIME TO BUY!' Don't believe it for a second. If you are serious in wanting to buy a RE Investment, even if you pay a little more, you'll be far more secure in Dubai that in Ajman which many have described as a 'Lawless Wild West' type of environment.

In addition, look at the cases where a project was offered as a 'freehold' then converted to a 'leasehold' !! Imagine, you purchased, been making payments and halfway through this bombshell is dropped on you, 'Sorry, it's a leasehold now... ugh.. - You should prepare yourself for more of this to come. Some are of the belief that the authorities would prefer investors to run away, throw-up their hands and never look back. This way, they can simply just pocket the money and have the last laugh.

Be very careful.

Due a number of reasons we had to rent a place in Ajman and moved to Horizon Tower which is a freehold or leasehold development there.

The building consists of 4 blocks with studios, 1 and 2 beds. A 2 bedroom with area of 1600 sq ft or so was for 38.000 with one parking back in July 2010. That was quiet cheap at the time.

Anyhow next month received the following bills - (we are quiet economical with energy use):

Electricity - 550 AED
A/C Cooling - 1500 AEd
Water - separate account
Sewarage - 75 AED/monthly but increases over some limit.

All these figures as oppose to 700 AED we use to pay in Dubai for everything even during summer.

So automatically our rent has gone up so much.

Now, one of the biggest problems is no adequate electricity connection. Each of the new building is run on a diesel generator, hence the price of utility bills, its also damn noisy.

Another big concern is the quality of finishing, it sort of seems to be okay however, when you start using it everything is just falling apart. I created a snag list that didn't fit on one page. I guess these developers had to finish somehow so they just crap or cheapest options possible. The maintenance team is slow and take two three month to repair anything.
I have seen many apartments in International City and I feel the quality of finishing is lower in Ajman than in IC.

Quality of water is horrible, if it wasn't for special lotions and hair enhancements i think i would go bold by now. So now thinking of all those "cities" on Emirates Road, what quality of water would there be ? as well as where will they get all the electricity. Price of diesel is also rising.

It seems people like mad ran and bought without taking even basic precautions or understanding where Ajman is.
Of course its easy to say now but even then. Ajman ? come on....

Either way moving back to Dubai in few days but I will surely miss Kempinski Sports Bar and the Traffic Lights with Timers.

 

[rameshg92]

Studio in Ajman for Dhs 100k to get some rental income

Due a number of reasons we had to rent a place in Ajman and moved to Horizon Tower which is a freehold or leasehold development there.

The building consists of 4 blocks with studios, 1 and 2 beds. A 2 bedroom with area of 1600 sq ft or so was for 38.000 with one parking back in July 2010. That was quiet cheap at the time.

Anyhow next month received the following bills - (we are quiet economical with energy use):

Electricity - 550 AED
A/C Cooling - 1500 AEd
Water - separate account
Sewarage - 75 AED/monthly but increases over some limit.

All these figures as oppose to 700 AED we use to pay in Dubai for everything even during summer.

So automatically our rent has gone up so much.

Now, one of the biggest problems is no adequate electricity connection. Each of the new building is run on a diesel generator, hence the price of utility bills, its also damn noisy.

Another big concern is the quality of finishing, it sort of seems to be okay however, when you start using it everything is just falling apart. I created a snag list that didn't fit on one page. I guess these developers had to finish somehow so they just crap or cheapest options possible. The maintenance team is slow and take two three month to repair anything.
I have seen many apartments in International City and I feel the quality of finishing is lower in Ajman than in IC.

Quality of water is horrible, if it wasn't for special lotions and hair enhancements i think i would go bold by now. So now thinking of all those "cities" on Emirates Road, what quality of water would there be ? as well as where will they get all the electricity. Price of diesel is also rising.

It seems people like mad ran and bought without taking even basic precautions or understanding where Ajman is.
Of course its easy to say now but even then. Ajman ? come on....

Either way moving back to Dubai in few days but I will surely miss Kempinski Sports Bar and the Traffic Lights with Timers.

Can I get studio in Ajman for Dhs 100k or little more now as market has crashed totally. I am getting studio flat in International city for Dhs 180000 its over my budget. what my plan is to save money on my rent and use this studio flat in ajman or otherwise I can stay in dubai and rent this studio flat in ajman for Dhs 14k. so within like 7 years ill get my investment back of this Dhs 100k.

Kindly advise and suggest.