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AED 11 Billion the Real estate Transactions in Ajman in 2015
In this interview, Sheikh Abdul Aziz Bin Humaid Al Nuaimi, Chairman of the Board of Directors of the Real Estate Regulatory Agency (ARRA), sheds light on the property market trends and ARRA's achievements during 2015, saying that 2015 saw tangible stability, however, Q3 of this year may witness growth in the real estate transactions, particularly in the ready projects. Ajman has been witnessing booming urban and the real estate sector in the emirate still of great interest to property investors. The emirate exerts determined efforts to implement the directives of our wise leadership to achieve Ajman Vision 2021.
Transactions
Concerning property transactions, Sheikh Abdul Aziz Bin Humaid Al Nuaimi said, although 4032 units in seven freehold projects were delivered in 2015, transactions in the real estate units in completed projects have been increasing compared to units in under construction projects. Total property transactions in 2015 amounted at AED 11 Billion
In the freehold projects, transactions have increased by 27% compared to the results of last year and the total value of the transactions in 2015 amounted to about AED 450 million, and the number of transactions totaled 1147, while the total value of transactions in 2014 amounted to nearly AED 352 million and the number totaled 920 only. In 2015, ARRA completed 3462 real estate application compared to 3339 last year
Prices of units range between AED 340-780 s/f. The prices of apartments in Corniche Tower range between 570-780 s/f while it is AED 340-470 in the Falcon Towers, and the unit price in the City Towers ranges between AED 450-600 s/f.
Investors from Europe and Asia have topped the list of expatriate investors in Ajman property market, followed by Arab nationals, while on the GCC level, Emirati investors have topped the list followed by Kuwaitis and Saudis. Concerning popular areas in Ajman where most transactions take place, the Corniche, Al Rashidiya, Al Nuaimiya and the Emirates City are the most favorable areas for investors.
New Developers
The real estate market in the emirate of Ajman still of great interest to investors. A number of new developers approached ARRA to authorize them to practice the property development activity, of which FAM Holding Group (FAM Real Estate), Dana property development and Alf real estate.
Owner Associations
On the owners' association, Al Nauimi said the board has approved at its last meeting the recommendations of HE Yafea Al Faraj, ARRA Executive Director on the importance of proceeding with the registration and activation of the owners associations within the freehold projects in the emirate of Ajman. The move followed by holding separate meetings for unit owners of each project to nominate members and heads of these associations. ARRA, meanwhile, signed an agreement with Abu Dhabi Commercial Bank to manage the accounts of these associations.
Initial Registration
Commenting on the initial registration of real estate units, ARRA Chairman said that the Real Estate Regulatory Agency had embarked on the initial registration of the real estate units, as part of its endeavor to protect the rights of investors who bought off-plan properties. In this process, the investor gets an ownership certificate in which the property value and premiums are included.
The number of initial registration transactions that have been logged in ARRA's register in 2015 exceeds 1,500, while about 650 transactions were processed in 2014, with an increase of over 200%.
Mortgage
On Mortgage, and the local banks' role in stimulating the real estate market, ARRA Chairman said that the mortgage system in the UAE's banking sector takes into consideration the balance of interests and risk free LTV for borrowers, financiers and real estate developers. This approach reflects a positive impact on the performance of the real estate sector as it stimulates the appetite of investors, borrowers and property developers.
The real estate sector witnessed a noticeable rebound when the UAE's central bank issued a new set of regulations on mortgage lending to banks and other financial institutions with a maximum LTV of 80% for UAE nationals and 75% for none UAE nationals and 25 year mortgage repayment term.
Since then, transactions including mortgage top up, mortgage release and mortgage amendment at ARRA increased by 100% in 2015 compared to 2014.
Laws and Regulations
Concerning new real estate laws and regulations, Sheikh Abdul Aziz Bin Humaid Al Nuaimi pointed out that amendments to existing regulations are being carefully revised by the Legal - Affairs Central Department of the government of Ajman at the Ruler's Court. The updated regulations will have a positive impact on the real estate market in Ajman.
Within this context, a number of workshops were held over the past year to get feedback and suggestions from the real estate developers, investors, legal advisors and judicial bodies to make sure the anticipated regulations will cope with the volatility and trends of the real estate markets and that the new regulations will be passed and lead to a quantum leap in Ajman property market.
IPMS
With regards to the international property measuring standards, Al Nuaimi said, Ajman is one of the first governments to consider the IPMS in the Middle East. ARRA organized educational workshops to the concerned individuals to explain the importance of IPMS. Applying the international property measuring standards reflects transparency and credibility that help attract investments in the real estate market of the emirate.
In ARRA's attempts to apply IPMS. It began with a pilot phase in two completed projects in the Emirates city. During the first phase, difficulties and challenges facing the process were noted and reported to the International Property Measuring Standards Coalition (IPMSC) for consideration.
Electricity for all projects
The Government of Ajman exerted tireless efforts to provide electricity to the real estate projects in the Emirate including, completed, under construction as well as future projects. Availability of electricity was a significant reason that helped stir up the real estate market in Ajman.
OIL and Property
Concerning the implications of lower oil prices, Al Nuaimi said that the UAE is no longer dependent on oil. The contribution of oil revenue to the country's GDP stands at roughly 30 per cent
The country managed to diversify the sources of its income by relying on foreign investments, sovereign funds, medical tourism, and renewable energy.
Besides, the UAE enjoys an attractive investment climate for investors and residents, and modern infrastructure, which plays a major role in attracting investors and tourists from around the world. Tourism has become one of the major income sources in the UAE.
© Press Release 2016
