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Rental Market in Ajman

Discussion in 'UAE Property' started by johnb, Mar 17, 2009.

  1. johnb

    johnb New Member

    Hi,

    What is the rental market like in Ajman at the moment ? Are there tenants around or has everyone left the country, :)


    Are 1 bedrooms easier to rent than 2 bedrooms ?

    thanks
    Ali
     
    Last edited: Mar 17, 2009
  2. financier888

    financier888 New Member

    In my experience in Ajman - larger units are usually more in demand. To know the current market conditions - better to take a ride up to Ajman and meet with some of the local brokers.. There are quite a few buildings completed and nearing completion.. Largely, the market (sales and rental) was based on the Dubai overflow - people priced out of the Dubai market and also rising prices in Sharjah. Do you have unit completed and looking to rent it out? if that is the case, I can make some suggestions
     
  3. johnb

    johnb New Member

    I am possibly looking to buy a property some time in the future. Prices have dropped to below 300 aed/sqft. A friend told me prices will continue to fall - I have seen some flats in International City, Dubai advertised for 600 aed/sqft.

    You say larger units are more in demand but it would it not be more expensive for tenants to live in a 2 rather than 1 bed apartment?

    Where do you think prices will level off ? 200 aed/sqft ??

    thanks
    Ali
     
    Last edited: Mar 19, 2009
  4. financier888

    financier888 New Member

    Hi ali - 2 bedrooms will of course be higher in rental price than a 1 bedroom but what I am saying is that, in Ajman - their will be greater demand for 2 -3 bedrrom flats that one bedroom. More working people with families will be drawn to that market as it cheaper than Dubia and Sharjah - Even with rental prices coming down in Dubai / Sharjah - they may still be too high for most middle class working couples, familes - I know this from people that live up there and are renting. It will be easier to rent a larger flat not only for families but also for sharing.. Ideally, rather than buy off plan, you should look for deals on completed units as there are many up there. (depending on your cash position) In addition, some developers with completed units may self finance...

    rental prices in Dubai are already dropping by 30% + and will continue to fall due to decreased demand and increased inventory levels - but comparitively, they will still be rather high for familes earning AED 15.000 - 20,000 per year etc. also, companies may look to rent these kinds of flats in Ajman for staff etc.. In Ajman, for the best value & income potential - I'd look at the larger units...
     
  5. Faris

    Faris New Member

    Hi,

    I've recently bought a studio off plan in Ajman, i've made 50% of the payment. I have visited the location on emirates road and only a sign board has been erected. I've been advised by someone that I should stop my payments until some kind of construction gets going. Can I do that? I'm worried if I stop my installment I might get a penalty. The project was due to start in April but have been told it will start in October 2009. But looking at the site I cant imagine it will start for another year possibly longer. Any good advice will be welcomed.
     
  6. financier888

    financier888 New Member

    Who's the developer? and Which project is it? (Emirates Road is very long.........) When the new ARERA laws go into effect, the payments will be tied to construction - until then, you are bound by the conditions of your contract - that's why knowing who the developer is will be helpful... If the project has been delayed until Oct - it may be that it has NOT been handed over yet - so the developer cannot start - either way, I'd be reluctant to make any more payments over and above my 50% if they havent started - they should extend you a grace period.... IF they are reputable, they'd want to keep you on board as a buyer and extend a moritorium on payments till they start as you have already paid 50% - but what does you SPA say about cancellation>?>? (having paid 50% I am pressuming you have your SPA already??)
     
  7. Faris

    Faris New Member

    The Project is "The Cavendish" opposite Emirates city projct. The Developer is "UKCIG" (UK Capital Investment Group).
    What is SPA?

    Thanks
     
  8. financier888

    financier888 New Member

    I did read on one of these threads about two months ago - someone got all their money back but not sure if that would be possible at this point.. Not even sure if there office is sitll open in the UK - you should check the other threads that relate to this project -

    'SPA" = Sales Purchase Agreement - the more formal sale of contract that usually can come upto a year after you bought ! with ALL the terms and conditions of ownership & beyond.. Usually, you have to pay 30% until it's issued but that is likely to change - at least in Dubai... (In fact, in Dubai, this MUST be filed & approved by the land dept BEFORE they allow to sell) - so, if you are smart - you will request to review it BEFORE you make 1 payment...

    I am still amazed that they require you to pay them an additional 30% if you sell ! ?? not sure I am reading that right....hard to believe...

    check the other relatde threads - they are on here... &^ good luck !!
     
  9. Faris

    Faris New Member

    Thank you for your valuable advice.
     
  10. mayotom

    mayotom New Member


    Everybody has left, I'd be amazed if anybody could prove to me that there is a rental market in Ajman, who will rent em? where will they come from?

    I wouldn't buy it for 100AED never mind 300, people must be nuts
     
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