Monday, May 11, 2009

Ajman to announce sales price index for freehold areas soon

Ajman is on its way to introduce a sales price index for freehold areas in the emirate towards the end of the year, followed by a rent index.

The Director-General of ARRA (Ajman Real Estate Regulatory Agency), confirmed the launch of sales price index for freehold areas this year, and said that the prices of the properties will be determined on the basis of supply and demand.

Established in January this year, ARRA has been introducing measures to regulate the emirate's property sector. The agency said that developers who failed to meet the registration deadline on 1st May 2009 will be liable for a fine of Dh.100,000 per month.

Dubai's RERA was the first regulatory body in the UAE to announce a rent index in January, as a reference point for rent regulation.

The Associate Director of CB Richard Ellis Middle East, Matt Green, said that the creation of a price index in Ajman is a good positive sign. The declining real estate and economic situation in the emirate has had a big negative impact during the past nine months, and this will go a long way in instilling confidence in the Ajman market.

The index released by ARRA reflects the true market status, so that landlords, investors and end-users have the necessary tools to make good decisions in a market where the transparency levels are low, he added.

Green pointed out that transparency is on the increase in the UAE, with few initiatives from the government which has helped in the flow of information into the public. The trend is likely to flow into other emirates too, during the year, and more regulations will be passed which will help in further evolution of the local property market.

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