AJMAN
The smallest of all seven emirates of the UAE, Ajman is witnessing the maximum activity in the real estate sector partly due to investor-friendly property laws and partly due to affordable projects. According to latest studies, the investment in Ajman's property sector has now exceeded the AED 400 billion ($110 billion) mark. In the year 2008 itself, the Emirate has witnessed property price appreciation of almost 40%.
Ajman borders Al-Sharjah and is only 6 miles from Dubai in the south and Umm Qaiyuwin to the north. There are many roads that these Emirates share together. Ajman is near to the ports of neighboring Emirates. It is near the international airports of both Sharjah and Dubai.
Ajman has the fastest growing population of all Emirates, due to an influx of people from the neighboring Emirates of Dubai and Sharjah, who commute to work on a daily basis.
Ajman: The Next Dubai....
Ajman is located on the west coast of the Arabian Gulf between Sharjah and Umm Al Quwain, is only 6 miles from Dubai, and offers:
- Freehold property rights as of 2004
- 100% foreign ownership rights
- 100% repatriation of capital and profits
- Escrow account laws for developers to protect investors
- 20 years tax free operations and no personal income taxes
- Attractive developments backed by Ajman Government
- Ajman International Airport due to be completed by 2011
- The fastest growing population of all the Emirates
The influx of investments has prompted the Ajman government to initiate a number of development projects, which include housing estates, commercial and housing towers, marketing centers, hotels, as well as infrastructure.
BUSINESS ATTRACTION
The Ajman Free Zone offers investors many incentives including 100% foreign ownership rights, 100% repatriation of capital and profits, guaranteed 20 years tax free operations, and no personal income taxes. With the launch of Freehold developments in 2004, the real estate sector has experienced increased activity due to competitive pricing and its proximity to neighboring Emirates Sharjah and Dubai.
The government's efforts in improving accessibility to the Emirates will further fuel real estate and tourism growth over the coming years.
PROPERTY LAW
Ajman is the second Emirate after Dubai to introduce freehold property. The law was first introduced to the Emirate in 2004, boosting investor confidence in a real estate sector that has witnessed remarkable growth over the past year. HH Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, issued Amiri Decree No 7 and 8, 2008, to regulate the Emirate's land and properties sector. The decree comprises 34 articles that legalize freehold ownership of land and property for UAE, GCC citizens, companies wholly owned by them, as well as to the public stock companies.
When Dubai introduced freehold ownership to property investors in 2002, many believe it was the major reason the real estate market exploded in Dubai. HH Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman has now followed Dubai's footsteps, making it the second Emirate to allow freehold ownership.
Another of the new laws that will be of benefit to potential owners of property in Ajman is the legal framework put in place regarding escrow accounts. Developers are now required to place five-ten percent of buyer's deposit into an escrow account which can only be released once the construction process has been completed.
Additionally, when development companies promote and advertise Ajman properties they are required to obtain clearance from Ajman's land department who are entrusted to review all advertising material to ascertain that it doesn't mislead potential buyers regarding forecasted capital price growth and over-ambitious completion date claims.
FREEHOLD PROPERTY
The law allows non-GCC developers and buyers to own freehold land and property in designated areas determined and approved by the ruler. Apart from GCC nationals, other expatriates could obtain property on freehold as well as 50-year leasehold basis that is renewable in areas designated by the ruler.
LAND DEPARTMENT
According to the law, Ajman's Department of Land and Property regulates the sector, survey areas, approves the land map and the fees for the services provided by the department and registers all properties. It is solely assigned to register property rights and long-term leasing contracts.
INHERITANCE LAW
Inheritance notifications must be registered with the property register, in case heirs have property rights within their inheritance. No dealings will be admitted unless registered.
INVESTOR SECURITY
Dubai's Law No. 8 of 2007 on Guarantee Accounts of Real Estate Development (Escrow Account or Trust Law) has significantly contributed in streamlining property purchases in the Emirate.
In similar lines, Ajman has introduced bank guarantees to safeguard investor's interest. Fuss free investment is always a strong motivation factor for property investors.
Bank guarantees must be deposited for those who wish to invest in Ajman and that money must be used only for the project itself. An amount of 5-10 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 handover.
INFRASTRUCTURE DEVELOPMENT
In an effort to evolve as a world class city, Ajman is investing in the development of its infrastructure. The value of infrastructure projects in Ajman has touched AED 1.4 billion ($400 m) in 2008. The infrastructure projects will support the speeding up of real estate development in the Emirate.