| 16 Jun 2008 |
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Ajman issues new realty law
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Monday, Jun 16, 2008
Ajman: A new property law is set to boost Ajman's real estate sector which has witnessed solid growth over the last few months.
His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Sup-reme Council and Ruler of Ajman, last week issued Amiri Decree No 7 and 8, 2008, to regulate the emirate's land and properties sector.
Billions of dollars are being pumped into the emirate's property sector, where prices have jumped from Dh350 per square foot to nearly Dh500 during the last six months, as investors scramble for a piece of Ajman's growing housing sector.
The decree comprises 34 articles that legalise freehold ownership of land and property for UAE and GCC citizens and companies wholly owned by them as well as to the public stock companies.
Non-GCC developers and buyers can also own freehold land and property in designated areas that are to be determined and approved by the Ajman Ruler. Foreign investors have snapped up land on both sides of Emirates Road to build master-planned projects in Ajman.
"Apart from GCC nationals, other expatriates could obtain property on a freehold as well as 50-year leasehold basis which is renewable in areas designated by the Ruler," the law says.
The law empowers the Department of Land and Property to regulate the sector, survey areas, approve the land map and the fees for the services provided by the department and register all properties.
The Lands Department is solely assigned to register property rights and long-term leasing contracts.
"The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And no dealings will be admitted unless registered," it said.
"An amount of five per cent of the project value will be frozen and will not be released until completion of construction of the project," it stipulates.
The law states that a developer may not advertise projects without written approval from the department.
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Community Comments (2)
Ajman is ill-equipped to support real estate projects currently and possibly for the forthcoming 2 years atleast. This is mainly due to two important reasons:
(a) Power availability - there are frequent reports of blackouts even now and with no additional capacity being built, this will be a problem. However, heard some reports that a mega power project is udner consideration but this is like putting the cart before the horse. First provide the infrastructure , then sell the land or announce projects.
(b) There is no need for builders in Ajman to have an escrow account and hence the buyer will be at the mercy of the builder. Rumour has it that many projects in Ajman are being promoted by Dubai-based builders who have been hit by the Escrow requirements and are also short on funds. Hence they are reportedly using the Ajman route to raise funds for Dubai projects. Well, one does not know if this is the case but considering the lack of regulations in Ajman this could be a possibility as there is a sudden rush of builders into Ajman. Also, Ajman and Dubai are relatively closeby and how come the cost of construction can be so low in Ajman considering that materials like cement, steel, and even labor probably cost the same?
My advice is be extremely cautious.
IT IS STATED MANY DEVELOPERS ALREADY COLLECTED
10% TO 25% ADVANCE PAYMENT AND SOLD OUT MORE
THAN 5 PROJECTS TOWERS IN HUAMID CITY AND EMIRATE
CITY AJMAN. STILL CONSTURCTION WORKS NOT STARTED.
STILL THEY ARE BUYING MORE AND MORE LAND.
LAWS MUST IN FORCE TO COMPLETE CONSTURCTION WORKS WITH IN TWO YEARS AND START CONSTURCTION
WITHIN TWO MONTHS FROM DATE DATE OF BOOKING.
DEVELOPERS MUST KEEP DETAILS OF PROGRASSIVE
OF CONSTRUCTION WORKS ON LINE.
IN CASE IF CONSTRUCTION WORKS NOT STATRED WITH IN
TWO MONTHS FROM THE ACTUAL BOOKING, THEY WILL NOT COLLECTE MORE PAYMENT FROM BUYERS.
ALL DEVELOPERS COLLECTING 20% TO 30% WITHIN TRHEE OR FOUR MONTHS AND STILL DEMANDING MORE PAYMENT WITHOUT STATRS OF CONSTRUCTION WORKS.
BUYERS HAVE NO IDEA ABOUT STATUS OF PROJECTS
WHEN IT WILL STARTS AND HOW LONG IT WILL TAKE TO COMPELTE.
IN AJMAN NO ANY CHANCES TO GET ELECTRIC POWER WITHIN NEXT TWO YEARS.
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