Should You Invest?
Although the smallest of the emirates, Ajman could be one of the
stronger players in the United Arab Emirates real estate market.
The freehold nature of its property market, which is open to
foreigners, is attracting a huge numbers of investors, both local
and foreign to the region. Ajman is the only other emirate aside
from Dubai that allows foreigners to buy and own property and was
the first to offer 100% freehold rights to foreigners in 2004.
Strategically located at the entrance to the Arabian Gulf places it
at the juncture between east and west, thus gaining the capacity
for much trade between the markets. A new international airport is
under construction, planned to open 2011, which will greatly
increase the number of tourists and investors to the area. The
development of a £30 billion self-contained coastal city will
further develop the country's popularity and will draw
more investment into the country.
- Ajman has a growing free zone industrial area and a
strategically located port, both of which are witnessing a large
influx of construction.
- Thriving development across the emirate which will boost the
economy and draw other investors.
- Ajman is a more laid back and quieter emirate, a healthy
contrast for those wishing to escape the louder emirates.
- Rental yields sit around 8% - 10%.
- Capital appreciation is high at 30%.
Price History
The emirate has seen healthy GDP growth rates of an annual 11%
over the last decade, some of the highest rates in the UAE. As a
result of its diminutive size Ajman benefits hugely from
investment as individual developments have more significance than
in other larger economies, and investors are being attracted to the
emirate by its comparatively inexpensive costs and strategic
location. Although the government have a hand in controlling the
property market as some developers are from the ruling family, the
entrance of developers from outside Ajman has led to an increase in
the mortgage sector as the real estate market grows. Land prices
have increased from $11 per square foot to as much as $100 per
square foot. According to a publication by the Oxford Business
Group, developers had announced that total investment projects by
the third quarter of 2007 amounted to $21.78 billion, a staggering
increase on $953.05 million a year previously in 2006 and the
$118.81 million seen in 2003.
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