Saturday, February 14, 2009

Ajman property market considered more lucrative than Dubai

The emirate of Ajman is turning out to be a lucrative destination for buying opportunities, as rates have fallen as low as Dh.299 per square foot, from the Dh.600 per square foot rate that prevailed six months ago.

Although majority of the bargains are in Dubai, Ajman is not far behind, with equally or even better opportunities, as it is oriented towards the mid-income sector.

It is possible to purchase apartments in Ajman for as little a price as Dh.299 per square foot, and one need not wait for years for completion of the project, as the waiting period for such apartments would be only three to six months.

Property prices in Ajman began at a much lower level than in Dubai, when the first project in Ajman was launched in 2004 for Dh.176 per square foot. The units at Al Khor Towers in Ajman are now selling at a rate of Dh.299 per square foot, which means that a double bedroom apartment in Ajman is currently Dh.542,000. Similarly, the units at Horizon Towers are priced at a starting price of Dh.345 per square foot, with a double bedroom apartment being sold at Dh.631,760.

This, when compared to Dubai, indicates that even few of the cheapest studios are worth Dh.447,430, implying a rate of Dh.883 per square foot for a 506 square foot studio at present.

Although property prices and rents have been dipping this year, Dubai still remains expensive. Potential buyers are still awaiting mortgages and home financing options to enter the market for them to make purchases, while investors in off-plan units are trying to cancel contracts, fearing their financial security. On the other hand, properties in Ajman are almost complete, offering more comfort to buyers.

According to Christina Cabading, the President of BSEL Infrastructure Realty, the developer of five towers in Emirates City of Ajman, people are now seeking affordable places to live. Hence, even for people living in Dubai, the focus is being shifted towards Ajman.

Ajman Real Estate Regulatory Agency (ARERA) offers additional comfort and security, having informed all developers in Ajman that they must own an office in Ajman, and it is not sufficient if they just own an office in Dubai. The Agency however, has cautioned buyers to be diligent when considering low-priced properties.

The COO of Cirrus Developments, Rehan Khan, has urged investors focusing on extremely low-priced properties to check out if the developer has assured a trust account (Escrow) to protect their funds, and bring in quality in the project, as that would determine the rent or re-sale value in future.

1 comment:

WebJunky said...

this is true not just for ajman, but also for abu dhabi, sharjah and other nearby emirates. we are seeing an unpredented correction in dubai which is giving rise to neightbors to catch up by modeling dubai's success but learning from the failures at the same time. this trend will continue...