Ajman's real estate valued at Dh120b

The value of the real estate sector in Ajman, the smallest emirate of the UAE, has gone up to Dh120 billion, according to government statistics.

Ajman Chamber of Commerce and Industry's latest report shows that foreign direct investment (FDI) has exceeded the other emirates by 300 per cent in Ajman Real Estate.

Ajman Real Estate has eclipsed the other emirates in terms of attracting foreign investments into the country, with foreigners now owning 33 per cent of development projects established in the booming city compared to 11 per cent in the other emirates, thereby elevating Ajman's annual investment growth rate to an average of 6.7 per cent.

In addition, expatriates and GCC nationals are also being drawn to the relatively lower prices of properties in the emirate compared to the skyrocketing costs of investments in Dubai and Abu Dhabi.

Sweet Homes, a private developer, yesterday said it will launch a host of projects worth Dh2 billion in 2008.

There is a strong possibility that Ajman will be able to replicate the success it has witnessed during 2007 due to its intense focus to become a leading tourist, residential and investment destination," said Fahad Sattar Dero, CEO, Sweet Homes Group. As more private developers are being encouraged to launch residential properties aimed at low- to middle-income end-users, especially in the Emirates City along the Emirates Road, Sweet Homes has identified Ajman as an ideal location for a large percentage of its future projects.

Amidst the government's massive initiative to develop an investor-friendly business climate that is attracting stakeholders from all over the world, we have recognised the potential in providing a community development that addresses investor's requirements for residential and commercial built space. Ajman definitely lives up to our expectations, and we are currently on the process of developing more high profile projects in the emirate, he said.

Moreover, urban development projects worth Dh580 million, investments into maintenance services and infrastructure projects amounting to Dh174 million, and an Dh800 million sanitary water treatment project, were recently undertaken by the government in efforts to attract more local, regional and global developers and investors.

A special department has been set up by the Government of Ajman to regulate the booming real estate sector, which has been steadily growing since 2004.

At present, freehold and escrow account laws in addition to regulations similar to those adopted in Dubai, are being drafted by the new Ajman Development and Investments Authority.

Source: Ajman Real Estate by MENAFN

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Sweet Homes eying a larger share of 120 billion Ajman real estate sector

Sweet Homes, a leading UAE-based developer and multi-service provider to the real estate sector, has announced that it will be launching a host of projects within the AED 120 billion Ajman real estate market, as part of its AED 2 billion investment plan for 2008. According to the most recent statistics released by the Ajman Chamber of Commerce & Industry, the growing popularity of Ajman-based developments among global investors has resulted in the boom in the emirate’s Foreign Direct Investment (FDI), which has exceeded the rest of the other emirates’ by 300 per cent. Through the launch of its new projects, the developer is aiming to attract greater investment into Ajman, which will further boost the real estate sector within the emirate.

Ajman has eclipsed the other emirates in terms of attracting foreign investments into the country, with foreigners now owning 33 per cent of development projects established in the booming city compared to 11 per cent in the other emirates, thereby elevating Ajman's annual investment growth rate to an average of 6.7 per cent. In addition, expatriates and GCC nationals are also being drawn to the relatively lower prices of properties in the emirate compared to the skyrocketing costs of investments in Dubai and Abu Dhabi. As more private developers are being encouraged to launch residential properties aimed at low- to middle-income end-users, especially in the Emirates City along the Emirates Road, Sweet Homes has identified Ajman as an ideal location for a large percentage of its future projects.

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Saudi and UAE firms collaborate on Ajman real estate development

The Saudi-based developer Berjal Real Estate has joined with local developer Al-Rashid Real Estate to launch a major project in the emirate of Ajman.

To be called Berjal City, the 2.8 million square metre mixed-use development is expected to attract $4.1bn in investment.

Berjal Real Estate will be responsible for the development and implementation of infrastructure for the project, while Al-Rashid will be in charge of marketing the site.

Within the development, 123 free-hold plots have been earmarked for residential towers, commercial and administrative use. Investors in the plots can choose from a number of options to build commercial and residential towers ranging from 19 to 60 storeys.

It is planned that 60 per cent of the total area will be set aside for open spaces, such as hills and lakes.


About Ajman Real Estate from Meed

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Berjal City, a project of Saudi-Emirates collaboration invests more than Dhs15bn

Today Berjal Real Estate and Al Rashid Real Estate launch one of the largest real estate projects in the Emirate of Ajman, Berjal City.

The two companies announced the project of selling of lands for investors and real estate developers.

Berjal City is located in an extremely vital location on the main Emirates Road just beside the Emirates City in Ajman.

Berjal Real Estate, one of the most important real estate companies in Saudi Arabia, is developing and paving the infrastructure of the project and is providing all the necessary services needed. Al Rashid Real Estate, a developing and real estate marketing company in the Emirate of Ajman, is exclusively marketing this vital project.

Earlier, Yasir bin Abdullah Alnimr, the GM of Berjal Real Estate and Ahmad Alkaabi, the Chairman of Al Rashid Real Estate announced the details regarding the investment plan and selling strategy of the project.

During the conference, Abdulla Al Nasir the executive director of Berjal Real Estate explained the multi purpose project, which include 123 land plots earmarked for residential towers and commercial, administrative uses; that provides good opportunities for real estate developers to invest in the purchase of land to achieve highly promising investment returns due to the vital location of the project.

'Berjal City' provides 30 million feet of land for investment in which investors from all the nationalities will have a free hold permit. He also said that the Berjal Company chose the Emirate of Ajman for this unique project due to the fertile environment which is highly promising with the highest investment returns, specially being in a vital location on the Emirate Road.

The project is providing the investors with multiple choices to invest on these plots by building commercial and residential towers ranging between 19- 60 floors with various sizes and its expected that the investment volume will exceed Dhs15bn.

The GM of Berjal Real Estate ,Yasir Al Nimr said that 60 % of the total area will be earmarked for green hills and lakes to be enjoyed by the city residents.

He continued saying that this project of the company provides soft methods of payment to investors, allowing them to pay in installments of up to 30 months without interest. Berjal has a distinguished and marked presence in the UAE market through multiple real estate projects since quite long a time and Berjal City is another vital step of the company towards its remarkable presence and proof in the UAE market ,and still more projects to follow .

After purchasing the land, the company is now paving and preparing the infra structure taking into account the distinctive ways in which all the towers and magnificent buildings will be designed with fantastic water parks and green spaces to provide maximum comfort for the residents of the city. The paving of ground configuration to the investors will be completed in two months.

Ahmad Al Kaabi, Chairman of Al Rashid Real Estate said that his company will be exclusively marketing the project of Berjal City inside and outside the country in different ways based on the long-standing experience in the field of development and marketing stressing on the latest successful project which is fully sold to nvestors in Ajman. It contains 91 residential, commercial and administrative towers. The investors will start the construction in two months, beside that the city will include the first unique shopping center in the world in coordination with the most famous designing companies.

Ahmad Al Kaabi added that his company is currently marketing more than 35 real estate projects in the UAE including towers, villas and lands. Al Rashid Real Estate will market the plots of Berjal City internationally by contributing in the coming real estate exhibitions in different countries including South Korea from 23-28 june 2008,and other countries of Saudi Arabia, Qatar and Pakistan.

He also expressed his thanks to Berjal Real Estate which is highly famous in the Saudi market for their trust in Al Rashid Real Estate capabilities and selecting them for marketing this project, which intern will add a lot to the real estate market inside the UAE.

After the growing importance of the real estate market in the UAE and the great development drive in the recent years and its attractiveness to investors from all countries of the world, its worth mentioning that Berjal of the Saudi Real Estate company has many projects here and has recently opened an office in Dubai.

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Ajman Real estate projects has a long wait-list for utilities

Ajman Real estate projects has a long wait-list for utilities

Some 30 towers with hundreds of residential and commercial units are sitting empty following a wait of up to five years for services such as electricity, water and sewerage, said real estate sources in Sharjah and Ajman.

The problem is not the result of slow bureaucracy but a reflection of municipal systems that do not have the capacity to keep up with the demands of the rapidly growing emirates.

Ahmed Al Abdullah, CEO of New Dubai Property, which operates in Sharjah and Ajman, said population growth had made it difficult to resolve a current lack

of capacity despite efforts to expand infrastructure in both emirates.

The CEO of Sharjah's Noor Al Mamzar Property, Khalid Abdul Aziz Al Suwaidi, said the waiting list for public utilities was "years' long", in both emirates, but the problem was worse in Ajman.

However, Sharjah has seen the problem of empty buildings – with owners unable to rent out flats due to lack of electricity and water – particularly in high construction areas such as Muwilah.

Al Suwaidi said he knew of developers in Sharjah, who had to wait four years for services after obtaining their building licences.
And he said the problem was different in the two emirates because Sharjah produces its own power, while Ajman is dependent on federal sources. Ajman has already experienced power cuts as the demand on the electricity grid has outgrown supply. As a result, new buildings cannot be hooked up to the main network until more power is created.

Sources close to the negotiations, who did not wish to be named, told Emirates Business Ajman has already reached out to international companies to discuss building its own power plants. Ajman officials recently held meetings with representatives of a Canadian firm to discuss building a power plant – which could cost as much as Dh1bn – powered from gas from coal.

Meanwhile, the waitlist for utility services has grown so long some investors have begun to treat a notice of confirmation that supply will be provided from the municipality as a commodity that can be sold. These investors then sell projects that will be hooked up for much more than they paid for the land, without every building anything, said Obeid Al Tunaiji, CEO of Al Tunaiji Property. The promise of electricity and water, he said, has become enough to increase the value for developers.

While real estate officials, including Al Tunaiji, said growth in the two emirates is being hindered by the lack of utility capacity, they denied that property prices are high as a result.

Massive population growth, Al Tunaiji said, is behind the continuous rise in prices in Ajman and Sharjah, rather than a lack of supply. Even if the empty buildings came on the market, he said prices and rents would continue to rise. Al Suwaidi said returns on investment in property in the two emirates stands at 20 per cent annually.

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Ajman hopes to be next mini Dubai

Ajman hopes to be next mini Dubai

For the rulers of Ajman, presiding over the smallest emirate presents an opportunity as much as a challenge.

It is a philosophy that underpins the daily business of government, with Sheikh Humaid bin Rashid Al Nuaimi, Ruler of Ajman, starting each day discussing matters of state over a working breakfast with his sons, including Sheikh Ammar bin Humaid Al Nuaimi, the Crown Prince of Ajman.

The arrangement, says Sheikh Ammar, is typical of life in Ajman. “It is cosy here, a real family affair. A place where everybody knows everyone else.”

When The National interviewed Sheikh Ammar he was joined by his brother Sheikh Rashid bin Humaid Al Nuaimi, just 22 but already a part of a group of young and trusted advisors. “I am my brother’s jester,” Sheikh Rashid says, to laughter.

“He is also my bodyguard,” Sheikh Ammar jokes back.

When it comes to their ambitions for Ajman, a more serious note is struck. “Our uniqueness is in our small size and our proximity to the big cities and emirates,” Sheikh Ammar says.

“We want Ajman to become the getaway from the hectic working cities of Abu Dhabi and Dubai, where someone would spend three days working – and three days relaxing in Ajman.”

The magnitude of the emirate’s ambition was revealed earlier this month with the announcement of a Dh220 billion (US$59.9 bn) investment along the coast that will create a new city called Al Zorah.

While the development will bring thousands of jobs, Sheikh Ammar says his first concern is to protect the natural beauty of the 16 kilometres of coastline, including fragile mangrove swamps and other wildlife.

“They are precious and should be carefully preserved and be part of the project’s vision,” he says. “The first condition we put on this development was for it to be environmentally friendly.”

The development involves 12 million square metres of coastal and reclaimed land that will extend the waterfront by 12km.

“We are transforming virgin lands into a beautiful getaway,” Sheikh Ammar explains. Al Zorah is a joint venture between the Ajman Government and a Dubai-based affiliate of the Lebanese company Solidere, which rebuilt much of Beirut’s Central District after the civil war. Sheikh Ammar says the current crisis in Lebanon will not affect the project.

It will include villas and apartments as well as offices, shops, schools, several five-star holiday resorts, a championship golf course and five public marinas.

The masterplan also includes an equestrian centre.

In his 15 years as Crown Prince, Sheikh Ammar has built a reputation as a man with a good eye for horses, breeding several champions, and does not miss the opportunity to describe one of his favourites. “Lubnah, a beautiful grey female horse, is our pride here and is one of the top horses that competes in local and international horse shows,” he says.

The total investment in Ajman real estate has exceeded Dh400bn, Sheikh Ammar says, with half of Al Zorah’s residential property already sold.

“The largest investment in this emirate is coming from nationals from the other emirates,” he says. “We are grateful for their great support for Ajman.”

Advertisements for Al Zorah feature the popular Arab actor Omar Sharif, who was flown to meet the royal family, and “brings credibility to the project”, says Sheikh Ammar.

While the emirate is focusing on tourism and revamping its image, large sums are also being spent on improving infrastructure. Last year the Government assigned Dh500 million to improving transport links, including Dh45m for roads and intersections, Dh85m for two new bridges and Dh14m to maintain existing roads.

Equally important in exposing Ajman to international markets is a new Dh12bn international airport, scheduled to open in 2011.

“There is heavy traffic at the current airports and when you look, you find all flights booked, so this new airport will help alleviate some of the stress and give those living in the UAE more options,” says Sheikh Ammar.

In terms of industry, Ajman ranks third in the nation, and the Government wants to expand further, but with an emphasis on more environmentally friendly factories. “We understand the great health risks of factories, and so we are looking into higher technology factories like computer and related products.” Expansion, though, cannot take place without adequate energy supplies, something Sheikh Ammar admits has been a serious problem, with growing pressure on the Federal Electricity and Water Authority (FEWA).

“We have contacted several private companies to help us tackle this energy problem,” he says. “People have to expect the price of energy to go up because FEWA just can’t provide us with the energy that we need.” Sheikh Ammar cannot specify how much more consumers will have to pay, but admits he is aware of rising prices and says “life is getting more expensive”.

But he remains confident that standards of living will be maintained by the Federal Government, saying: “Sheikh Khalifa and Sheikh Mohammed will not allow a single Emirati to struggle and suffer.”

In an attempt to combat the energy crisis in the northern emirates, the Federal National Council recently gave the green light for private companies to provide power generators and produce desalinated water under the supervision of FEWA and in line with national environmental standards.

“It is a serious problem, and we are doing everything we can to make sure it doesn’t get out of hand,” says Sheikh Ammar.

Other difficulties include worsening traffic congestion, a problem felt by neighbouring Sharjah and Dubai. “We are starting to feel it, that is why we are putting a lot of emphasis on public transport,” he says.

Ajman plans to launch a public bus service later this year that will run from the industrial areas to downtown.

Sheikh Ammar points out that Ajman has always reacted quickly to change, noting that the emirate was one of the first of the northern emirates to follow Dubai in introducing freehold property, in 2002.

“In time, we hope to become a mini Dubai. We can’t say we will become Dubai – we have to be realistic,” he says with a laugh.

The National UAE

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Low prices of Ajman real estate attracts Dubai investors

Low prices of Ajman real estate attracts Dubai investors

Real estate prices in Dubai have appreciated almost 60-70% tempting the investors to venture into various upcoming real estate projects in the nearby emirates. The prices of real estate in Ajman are low and affordable compared to other emirates. Moreover, the prices of property in Ajman have apprized more than 30% making it an attractive market for realty investors in last few years.

Ajman was the only emirate to introduce freehold property after Dubai as early as in 2002. The Government of Ajman opened a special department, Ajman Development and Investment Authority, to regulate real estate development activities in the emirate.

Ajman is spending money towards the improvement and enhancement of its infrastructure facilities. In the year 2007, the government n assigned AED 500 million towards infrastructure out of which AED 45 million was utilized for roads and intersections, AED 85 million for two bridges and AED 14 million for the development, maintenance and renovation of the roads.

In Ajman, prices average US$ 600 per sq m for studios and US$ 480 per sq m for 1 bedroom apartments. Demand for smaller housing units like studios and 1 bedroom apartments is surging in Ajman.

With several billion dirham worth of real estate projects being launched in the emirate in recent times and several more expected in next few years, Ajman sets the stage for the second property boom in the UAE.

Source: Gowealty

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Ajman Real Estate

Ajman Real Estate

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