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 Property News, April 2009

Ajman property registration gets tough

Developers and master developers in Ajman failing to meet the May 1 deadline on registration will not be able to sell their properties "off plan", and will be considered to be in violation of the Ruler's Decree, a senior government official said.

"Anybody failing to register with us before May 1 will be considered to be operating in Ajman in violation of the Emiri decree and will face penalties from a minimum Dh100,000 onwards. There will also be a criminal part to it such as selling a 'fictitious project'," Ajman Real Estate Regulatory Agency (Arra) Director-General Omar Al Barguthi told Emirates Business.

"We have already penalised a few developers for giving false information in advertisements," Al Barguthi said after this newspaper pointed out that companies were still promising a residential visa on purchase of a property in the emirate. "Anyone who wants to publish advertisements will now have to get an approval number from us, which has to be published in all their ad campaigns," he added.

Al Barguthi reiterated that investors must make their payment only to the escrow accounts, which has now become mandatory for all developers. Ajman Bank is offering the escrow bank facility in the emirate.

Ajman Property News, April 2009

Ajman University-German relations progress by an offer to contribute in Arab Museum Project

Mr. Rafiq Aldoais, Administrative Manager of Bavarian International Health Agency headquartered in the state of Bavaria in Germany, visited Ajman University of Science and Technology (AUST) and met with Dr. Basheer Shehadeh, Vice President for Follow Up and Development, who expressed his best wishes to the mayor of Erlangen, Dr. Siegfried Balleis. They discussed ways of strengthening their mutual relationship that began in 2005 after the visit of H.H. Sheikh Humaid Al Nuaimi, member of the Supreme Council and Ruler of Ajman, and a delegation that was comprised of officials representing government and private institutions in Ajman. Dr. Shehadeh stated that there are several projects of common interests that can be fulfilled and accomplished, not only with the University but with Ajman governmental intuitions such as the Ajman Free Zone and Ajman Chamber of Commerce and Industry.

He also said, "We work together with most of the institutions in Ajman to find better ways of communication and collaboration and have a plan to exchange expertise, training and organize joint cultural activities, which will strengthen and enhance our relationship into a strategic partnership." Mr. Aldoais welcomed the enthusiasm expressed by Dr. Shehadeh and offered Ajman University to take part in the project of establishing the Museum of Arab Culture in Nuremberg which aims to unite the Arab and European cultures and to contribute to changing the present prejudices and aspects of misunderstanding. Dr. Shehadeh accepted the offer by stating that AUST will be honored to play a vital role in making this project a success and to contribute in enhancing the dialogue of differing cultures and societies.

Latest news from Ajman, April 2009

Ajman channels USD 375 million into infrastructure works and development in 2008

The Ajman Government has invested a total of USD 375 million in building roads and intersections, bridges, as well as maintenance and renovation of public facilities in 2008, according to recent reports. A review of past statistics also showed that this figure is almost triple the amount allocated for improving the infrastructure within the emirate in 2007, which was estimated at USD 136 million. Having built strong partnerships with the most prestigious master developers in Dubai, Memon Investments, a leading Dubai-based property developer and part of the international business conglomerate, the Memon Group of Companies, revealed that it is currently eyeing high profile city developments in Ajman as locations for its upcoming projects.

In addition to the sizeable investments into developing its public works, the Ajman Government has also unveiled plans for an international airport to be built in the emirate's Al-Manama district. This effort is expected to have a significant effect on the tourism as well as business sectors in Ajman, which will in turn drive the need for built spaces to accommodate the influx of tourists and expatriates. In addition, the government has also recently introduced the Ajman Real Estate Regulatory Establishment (ARERA) to regulate the emirate's property and construction sector. Memon Investments has identified the demand for relatively affordable but high quality residential properties among middle-income end-users, prompting it to explore plans to undertake several projects for this segment within Ajman.

Ajman Property News, April 2009

Ajman, where trust in developers is at a premium

Confidence in property developers in Ajman has slumped so low that the value of off-plan homes in the emirate is now impossible to determine, brokers say.

Buyers simply do not trust developers to complete about 900 towers proposed for a dozen suburban developments along Emirates Road, where construction has yet to start more than two years after the projects were sold.

“Now, there are people offering properties at Dh300 per square foot on Emirates Road, but nobody is interested in buying anything because there are a lot of properties and towers that you are not sure if they are going to be developed or not,” said Mohammed al Zarah, the vice president of Great Properties, a Dubai-based broker. “It is all about trust now.”

Overall, house prices in Ajman have fallen by 30 to 50 per cent.

“There is no real price level today in Ajman,” said Mehmood Yousuf, the director of the broker Minarat Properties, who is also a developer. “Since there is no buyer for off-plan properties any more, the price is whatever a potential buyer says it is.”

Prices had doubled in the first half of last year to peak at about Dh675 per square foot in certain areas. Today offers have fallen as low as Dh299 a square foot.

Ajman Property News, March 2009