Ajman plans Rera-like body

[Fran]

The Ajman Government will establish a real estate regulatory body, which will be similar to Dubai's Real Estate Regulatory Authority (Rera),in the first quarter of 2009 to streamline the sector in the emirate, a top government official said.

"The new real estate regulatory body will be similar to that of Dubai's Rera and will be established in the first quarter of next year. The government agency will be a separate entity and will not be a part of the Ajman's Department of Land and Property," Mohammed bin Ahmed bin Omeir, Director of Planning and Survey Department of the Ajman Municipality, told Emirates Business.

In June this year, the Ajman Government issued Emiri Decree No7 and No8 to regulate the emirate's land and properties sector. The government will, however, enforce the escrow account law by first quarter of next year with the new agency ensuring implementation of the law.

"The escrow account law is on similar line of the trust account law in Dubai. It is currently being drafted," said Bin Omeir.

Rera CEO Marwan bin Ghalita told this newspaper earlier that other emirates in the UAE and the Gulf Co-operation Council (GCC) countries were looking to create a body similar to Rera in order to regulate their property markets. "Many GCC country officials have come to us to discuss the blueprint of Dubai's Rera and understand how they can establish a body similar to Rera in their respective countries," said Bin Ghalita.

Rera, which is part of the Dubai Lands Department, is a nodal agency established in July 2007 that formulates, regulates, manages and licenses various real estates related activities in the emirate.

Ajman opened up its freehold property sector to foreign nationals in 2004.

The law allows non-GCC developers and buyers to own freehold land and property in designated areas determined and approved by the emirate's ruler.

Robert McKinnon, Managing Director of Research at Al Mal Capital, said: "It is a good time for Ajman to enforce regulations in the emirate. The success of the new body will depend on the type of regulations it will bring into force."

http://www.business24-7.ae/articles/2008/12/pages/12072008_db0321ea5c1447b4b9c019bee68e7d0f.aspx

 

[eyeC]

interesting post ,i would like to add that alot of issues involved WITH AJMAN property market

- prices went up too fast without the infrastructure to go with it

-electrical and water supply shortages the small emirate is not ready for the huge projects

-all the low end developers went to AJMAN and many were new to the construction industry so i don't expect high quality buildings

- no laws to go with the massive property market

and it did start selling freehold land to developers at the end of the boom cycle..... bad timing

i expect a lot of investors lost in ajman property market unlike Dubai we had gainers for the first few years

regards

 

[memo123]

read this article since saturday

This move is coming too late , how will RERA now help all the people that have already paid to devlopers in ajman with no escrow or rera in place . can it tacle ols issues? that is the bis question . can they take all the money paid and out it in escrow accounts now? I think not .

this mov

The Ajman Government will establish a real estate regulatory body, which will be similar to Dubai's Real Estate Regulatory Authority (Rera),in the first quarter of 2009 to streamline the sector in the emirate, a top government official said.

"The new real estate regulatory body will be similar to that of Dubai's Rera and will be established in the first quarter of next year. The government agency will be a separate entity and will not be a part of the Ajman's Department of Land and Property," Mohammed bin Ahmed bin Omeir, Director of Planning and Survey Department of the Ajman Municipality, told Emirates Business.

In June this year, the Ajman Government issued Emiri Decree No7 and No8 to regulate the emirate's land and properties sector. The government will, however, enforce the escrow account law by first quarter of next year with the new agency ensuring implementation of the law.

"The escrow account law is on similar line of the trust account law in Dubai. It is currently being drafted," said Bin Omeir.

Rera CEO Marwan bin Ghalita told this newspaper earlier that other emirates in the UAE and the Gulf Co-operation Council (GCC) countries were looking to create a body similar to Rera in order to regulate their property markets. "Many GCC country officials have come to us to discuss the blueprint of Dubai's Rera and understand how they can establish a body similar to Rera in their respective countries," said Bin Ghalita.

Rera, which is part of the Dubai Lands Department, is a nodal agency established in July 2007 that formulates, regulates, manages and licenses various real estates related activities in the emirate.

Ajman opened up its freehold property sector to foreign nationals in 2004.

The law allows non-GCC developers and buyers to own freehold land and property in designated areas determined and approved by the emirate's ruler.

Robert McKinnon, Managing Director of Research at Al Mal Capital, said: "It is a good time for Ajman to enforce regulations in the emirate. The success of the new body will depend on the type of regulations it will bring into force."

http://www.business24-7.ae/articles/2008/12/pages/12072008_db0321ea5c1447b4b9c019bee68e7d0f.aspx

 

[eyeC]

This move is coming too late , how will RERA now help all the people that have already paid to devlopers in ajman with no escrow or rera in place . can it tacle ols issues? that is the bis question . can they take all the money paid and out it in escrow accounts now? I think not .

this mov

RERA in Dubai is not effective as you might think ,it only pumps confidence thats all

no one forced any investor to buy in Ajman they did it because they saw profits

and people made deals buying and selling without RERA or proper laws

now we know its wrong

the property market in ajman will take along time to come back to the sceen

 

[Fran]

Guys,

the Ajman RERA will secure the future, not the past. Few developers may have run a way, but many are still building. Eventually the emirate will take new shape in the next 10-15 years. Keep in mind the big picture.

Right now sales all over the UAE are slow, but with the time the market will recover. One thing is for sure: after downs follow ups.
The analysts have established that the recession has began in the fourth quarter of 2007. This means that the market will peak again sometime in the fourth quarter of 2009 or the first quarter of 2010. We just have to hang on until than. Keep in mind that in this country things happen on high speed in comparison to the rest of the world.
Also in 2010 will be introduced the new Gulf currency, which will present the whole investments scene from a different angel.

Ajman offers low cost housing, which will be essential for the service industry. Ones Burj Al Arab becomes functional, Dubai will become even more important in the international scene. Desperate for jobs expats will be coming by thousands daily, accepting lower salaries. Surely, most of them will not be able to afford homes on the Palm Jumeirah at least for the first 2 or 3 years. Ajman is convenient as it's 30-40 min drive from Dubai.

So, keep looking at the big picture. Real estate investments are not made for few months. Usually takes few years to cash in with profits.

 

[psychiatrist]

True Fran,
Ajman is the ultimate longterm investment, the airport opens 2011, and it is the smallest emirate with good proximity to Dubai, unfortunately Sharjah will remain very conservative,
The prices in Ajman are already low hence with the downturn they cannot fall below the cost of consturction.
It is the ultimate end user market, all the developers have to do is to continue building existing projects, it is a definitely more feasible off plan market, if it gets its act together, prohibits nonsense buyback offers, and buildings are built on time.
Ajmans future can be bright , there is no doubt about it

 

[zombie]

True Fran,
Ajman is the ultimate longterm investment, the airport opens 2011, and it is the smallest emirate with good proximity to Dubai, unfortunately Sharjah will remain very conservative,
The prices in Ajman are already low hence with the downturn they cannot fall below the cost of consturction.
It is the ultimate end user market, all the developers have to do is to continue building existing projects, it is a definitely more feasible off plan market, if it gets its act together, prohibits nonsense buyback offers, and buildings are built on time.
Ajmans future can be bright , there is no doubt about it

The big "IF" with Ajman is "all the developers have to do is continue to building existing projects". Prices have already fallen below construction costs according to me, but only those developers who have not sold a majority of the units will face issues.

The future of Ajman will be right if the govt there gets its act together, creates the infrastructure required(power, water, roads),regulates the developer as well as the sale/purchase process & reinstates the investor visa for property purchaser(link it with the immigration dept). Also certain bottlenecks on Emirates Road(the major highway connecting Most projects in Ajman to Dubai) are sorted, reducing travel time, maybe introducing a fast & comfortable mass transit systems for residents to travel to dubai.