Saturday, April 18, 2009

Ajman bans developers from announcing buy-back schemes

Ajman has banned developers from offering Buyback schemes to purchasers for promotion and sale of their projects, a senior government official in Ajman revealed.

The Director General of ARRA (Ajman Real Estate Regulatory Agency), Omar Al Barguthi, said that few developers are offering such schemes, and this practice need to be stopped.

With the land and property prices shooting up in Dubai during 2007, Ajman came to be known as the destination with most affordable housing targeted for the mid-income group. Several projects were unveiled during this period, which lured customers with promises of residency visas and guaranteed buyback of units.

Barguthi clarified that few developers misused some information for publicity and mislead investors. Hence now the developers are banned from coming up with any campaign unless they receive a written approval from ARRA.

The developers have been banned from advertising about visas, unless ARRA grants them the permission to do so after proper verification about their ability to do it.

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