Humaid City! - your feedback would be quite appreciated!

[Ketan]

Greetings fellow forum members!!!

Am just new to Dubai and am thinking of purchasing a 2 bedroom apartment in Humaid City in Ajman for about Dhs.525/- per sq.ft.

Upon running quite a few searches over the net, I have come accross the following concerns over investing in Ajman:

1...FEWA's issues with electricity and water supplies for the upcoming projects.
2...Ajman's property sector's legislation not being as transparent as Dubai's or Abu Dhabi's
3...Ajman not being as growing an emirate in terms of population / trade as some of its neighbours.

Am not sure of how fundamentally sound some of the write ups were. I thus think its best to get your valuable opinion regarding Ajman (wholistically) as an Emirate to invest in, and (specifically) about Humaid City (Blossom Towers).

Thanks in advance for all your inputs.

Regards,

Ketan...

 

[imported_psychiatrist]

Ajman is a good medium and longterm investment.
Prices in Dubai will continue to shoot upwards, and Dubai will be one of the most expensive(it already has started to be) city to live.
Ajman will provide the low-middle class workers (especially expatriates) with housing.
Sharjah remains a conservative emirate where they do not allow booze,night clubs,ect.. so it will not develop as quick as Ajman for social reasons.
Humaid City is ok but if i were you considering you are choosing along the emirates rd, i would choose emirates city, or at least the emirates extension(laketowers)
As for electricity Malaysians are going to build a 2 billion dollar plant to be completed by 2012
Most of the projects in Ajman have R holdings in on it in one shape or form.
The emirate has invested already so much in its market and will not allow the likes of Ras Alkaima steal the show.
Moreover it is possible that the Dubai metro will be at one stage extended, to Ajman, Can you imagine what your flat will be worth in 10yrs time!!!!

 

[Ketan]

Hello Psychiatrist,

Thanks for your insightful (and assuring) reply.

And yes, you're quite right, after your post I ran another check on the net and found that there is indeed a Malysian company invoved with providing addition electricity supply. This definately sounds like a positive step on the Ajman government's part.

If you would be so kind to allow me to pick your mind about the medium term appreciation of this property, what do you reckon the price per sq ft. would be for a 2-Bed in Humaid City in:

June 2008 - Dhs.345/- per sq ft (approx.)
Dec 2008 - Dhs.400/- per sq ft (approx.)
June 2008 - Dhs.500/- per sq ft (approx.)
June 2009?
June 2010?
June 2011?
June 2012?
June 2013?

This reason I ask this is that from whatever little I know about the capital appreciation of off-plan projects, I've beleived so far that it would usually occur in 3 spikes (on an aggregate): first - immediately after complete sale of more than 50% of the project, second - where half the construction work has been completed, third - after handover. Do you have any thoughts about this being true /absurd at all?

Also, this project in Humaid City that I'm looking into is due for completion in 2011 mid with a payment plan uptp 2013. So when ready, how much rent do you estimate I could reasonably expect to get for a 2 bed room in Humaid City.

Appreciate your views on this.

Regards,

Ketan