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Ajman offers buyers affordable housing options

Discussion in 'Dubai property' started by Sid08, Oct 12, 2008.

  1. Sid08

    Sid08 Guest

    Ajman offers buyers affordable housing options

    In spite of the recurrent global financial crises, the UAE is registering impressive growth in all spheres of developmental activity. Rapid urbanization and industrialization have triggered a population boom in the country that is expected to grow by 7% in 2009. According to a release by the UAE Ministry of Economy, the country's population, estimated at 4.48 million at the end of 2007 is projected to climb 6.12% to 5.06 million by 2009. In 2007 over 3.62 million expatriates were believed to be residing in the country as compared to 864,000 UAE nationals. Meanwhile, the per capita income of residents has more than doubled from AED 76,000 (US$ 20,000) in 2006 to AED 162,000 ($US 44,000) in 2007, indicating a steep rise in personal incomes despite inflation. Upon evaluating the current and future scenarios, our research team foresees a shortage in the mid-level housing sector that would ignite a scramble for affordable residential properties and amenities.

    As property prices and rents soar in Dubai and neighboring Abu Dhabi, Ajman with its moderately-priced offerings is drawing considerable investor interest. In the wake of a growing dearth of affordable housing across the UAE, Ajman is emerging as a hot favorite among home buyers. Property prices in Ajman now average between AED 700 and 750 per square foot as compared to AED 2500 and 3000 per square foot in Dubai.

    Key factors promoting investments in Ajman

    Freehold status:The recently issued Realty Law legalizing freehold ownership in the emirate has heightened buyer confidence in the market. According to the new rules, non-GCC developers and investors can own freehold land and property in designated areas determined and approved by the Ruler of Ajman. The law has precipitated buying frenzy by foreign investors on both sides of the Emirates Road to develop master-planned projects.

    The Department of Land and Property of the emirate will monitor the sector, survey areas, approve the land map and the fees for its services and register all properties. It is the sole body authorized to register property rights and long-term leasing contracts. Also, Ajman has introduced the bank guarantees similar to Escrow Accounts imposed by Dubai to safeguard investor interests. Bank guarantees must be deposited for those who wish to invest in Ajman and that money must be use

    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 delivery.

    Proximity to Dubai
    Moderate prices and the relatively short commuting time are encouraging families to shift base to Ajman. The six-lane Emirates Road linking Ajman to other emirates has alleviated traffic chaos, improving road safety standards. Also, Ajman is planning to improve its road network by allotting AED 3 billion over the next three years for the sector. Over 12 proposed road projects totaling AED 4.8 million are to be completed by 2011.


    Ajman is:
    2 km from Sharjah
    12 km from Dubai
    21 km from Umm Al Quwain
    70 km from Ras Al Khaimah
    120 km from Fujairah
    180 km from Abu Dhabi


    Healthy future gains
    Unlike Dubai or Abu Dhabi, Ajman is home to a large number of residential developments targeting the middle-income segment. And, we expect the trend to continue as the disparity between demand for and supply of affordable housing grows wider elsewhere in the UAE. Consequently, the emirate is growing popular among non-GCC expatriates on the lookout for quality yet inexpensive accommodation. We expect a high demand in the immediate future for smaller properties like 1 and 2 bedroom apartments, as families shift base to Ajman from neighboring Dubai. This is expected to raise primary as well as secondary sales of properties. Once the road projects are complete by 2011, prices and rents will certainly head north as more families opt for Ajman instead of neighboring emirates.

    Infrastructure
    Although Ajman's infrastructure cannot be compared with Dubai's, it is continually evolving. To woo investors, the emirate is investing heavily in the development of its infrastructure. Ajman has signed AED 7.34 billion deal with Malaysian Mining Corporation (MMC) which would bring Middle East's first coal-fired power plant to the emirate.

    In addition, work to increase the federal power production is being undertaken with the major element slated to be located in Ajman, at the 'Al Zora' power plant, which is expected to be completed by mid-2008.Founded in 1988, the Ajman Free Zone (AFZ) with its package of unbeatable advantages is widely recognized as an entrepreneurial hub. A multi-million dirham developmental plan on over a million square meter area is under progress at the Free Zone, which on completion will be able to accommodate 600 companies.

    The emirate 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 center 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.

    The AED 12 billion Ajman International Airport slated to be operational by 2011, is expected to hike visitor traffic to the emirate.



    Kind Regards

    Saeed

    G I Real Estate Brokers (LLC)
    P.O. Box 215692
    Dubai
    UAE
    My Global Investments

    U.K
    t: +44 (0) 7960 272251


     
    Last edited by a moderator: Oct 12, 2008
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