Park view ajman

[byer 2009]

Hello everyone

I would really appreciate your views about park view ajman. Most of the development there are escrow account, some says payment by construction. Also says that master development has guranteed the electricity and water. Average price 550 /sq foot for residential and around 600/sq foot commercial. I am thinking to by a commercial property there. Any one of you heard about alamfa developer(says french developer, project T Ten tower in park view payment plan 4 yrs) or gulfstar city ( says german developer, project parkview palace residential and commercial payment plan 8 yr but high intial few payments). I am very greatful for any guidence in this matter as I live in Uk.

 

[financier888]

Hello everyone

I would really appreciate your views about park view ajman. Most of the development there are escrow account, some says payment by construction. Also says that master development has guranteed the electricity and water. Average price 550 /sq foot for residential and around 600/sq foot commercial. I am thinking to by a commercial property there. Any one of you heard about alamfa developer(says french developer, project T Ten tower in park view payment plan 4 yrs) or gulfstar city ( says german developer, project parkview palace residential and commercial payment plan 8 yr but high intial few payments). I am very greatful for any guidence in this matter as I live in Uk.

Hello Byer... It sounds like you are looking to make an investment and you're in the UK and obvioulsy not living here.... On the surface - compared to the former Dubai benchmark pricing - the Ajman prices of 550 & 600 look like a bargain.. but consider the following & think about it :

1) In Ajman - right now - in the center of town there are about a a half dozen towers - commercial & residential that are completed and not handed-over because no electric yet.. If you drove through Ajman - you will see literally dozens of buildings in various stages of completion.. and I am talking about 1,000's of units.... already far a long in construction...

2) The Ajman market largely came into being due to Duabi boom and the hyper-inflated pricing that became out of reach for many buyers... so - they bought in Ajman. Many of them purchased because of lower pricing AND they could get a visa - which as of now - they no longer can...

3) Prices in Dubai are falling - correcting, if you will, - the demand for offices in Dubai has dropped considerably with much further to go that will increase DOWNWARD pressure on the prices. Within the next year, you may very well see prices in some sectors dropping to 900 - 1,200 - down from the 1,500 - 2,200 levels.. Would you have a better investment in Dubai at 1,000 or in Ajman at 600? (and the 600 price you mentioned may be a low floor - the higher you go - the higher the price....)

4) Now, unless you are intending of moving to Ajman and using the office yourself, my guess is - you will try to rent it or resell it - Before you purchase any real estate you must reconcile in your own mind - if I sell - who will be my buyer and / or - if I rent who will rent it? I live here and am active in the market and I can't answer those questions... Becuase, the Ajman market evolved as a bedroom community to Dubai when Dubai became too expensive - so, if that is no longer the case and you have to rent an office - and now find that Dubai will be more attractive and affordable - why would you move - whether renting or buying in Ajman? considering MOST of your business will be based out of Dubai...? and in Dubai you have all the amentities, services, hospitals, schools etc..

Have you driven through Ajman? aside from low prices - what would you find attractive about it? before you buy = better invest in a plane ticket and spend a day driving around or stay overnight... OR, you might find all you need to know in less than 2 hours..... Stay in the best and most expensive hotel in Ajman - it wont be hard to figure out which ONE that is...

Finally - ALL Master Developers have clauses in their land sales agreement, that they will provide electric - what you are NOT being told, there is additional language in the contract which states that in effect - IF the govt' does NOT provide the electric or is delayed in doing so - then they (the Master Developer) is NOT responsible... You see, ONLY after you pay 20% - will you get your Sales Purchase Agreement (SPA) - then and only then, will you see ALL the terms and conditions of your contract - including legal langauge which will state the aforementioned..... Check the other threads on here related to Ajman properties and contract issues....

the Master Developer gets the water and electric from the govt - the Municipality - (unless the Developer is providing their own electric delivery system) so, he can only promise / represent what his contract reflects from the govt. if the govt is delayed - then, it's not his fault... catch my drift here???

Prices are rapidly falling in Dubai and will continue to do so. Isn't it a fair assumption - that within the coming months - with little demand - prices in Ajman will drop also? because there is far less demand in Ajman than there is for Dubai especially as Ajman attacted more unexperienced developers that were not forced to be accountable for the sales proceeds....

My advice is to you - WAIT. Take your time. There are NO plane loads of buyers rushing into Ajman to snap-up bargains.... Wait till the govt RE regulatory agency gets moving and forces registered developers into compliance.. (ARERA) - wait till the dust settles and see who remains standing.... and above all - before you are prepared to give away your hard earned savings - INVEST IN YOURSELF - come out here and do your due diligence before you make a descion that may cause you heartache and grief for months to come....

good luck & CAVEAT EMPTOR!

 

[financier888]

Article - Low Rates make Ajman property attractive

Low rates make Ajman property attractive
Publish Date: 2009-02-12 02:00:03 Story Code: 10544



Dubai: Buying opportunities in Ajman real estate have brightened up as rates come down to as low as Dh299 per square foot now from Dh600 per square foot six months ago.
While there are many bargains to be had here in Dubai if cash isn't an issue, in Ajman, the opportunities are just as great and, even better, targeted to the mid-income price bracket.

It is now possible to buy apartments in Ajman for as little as Dh299 per square foot. And not because you will have to wait three years for it to be built - just three to six months. Property prices in Ajman began a lot lower than those in Dubai - the first project launched in Ajman back in 2004 was Dh176 per square foot, according to Roger Wilkinson, managing director of Northern Emirates Property.

In Al Khor towers in Ajman, units are selling for Dh299 per square foot, meaning a two-bedroom apartment is now about Dh542,000. In Horizon Towers, units are available from Dh345 per square foot. A studio is selling for Dh258,000 and a two-bedroom apartment is selling for around Dh631,760.

By comparison, in Dubai, some of the cheapest studios are around Dh447,430 which can translate to Dh883 per square foot for a 506 square foot studio.

Although it is true that property prices and rents have been dipping so far this year, Dubai still remains relatively expensive.

There are many potential home buyers waiting in the wings for mortgages and home financing options to come back in the market so they can buy.

While many investors in off-plan units are attempting to cancel contracts, fearing for their financial security, these properties in Ajman are nearly complete, offering more comfort to buyers.

"People are now looking for affordable places to live. That's why now, most people living in Dubai are shifting to Ajman. Even though prices are going down, Dubai is still expensive," Christina Cabading, president of BSEL Infrastructure Realty, developer of five towers in Emirates City, Ajman.

There is also added comfort and security available in the form of the Ajman Real Estate Regulatory Agency (Arera). Arera have informed all developers in Ajman that they must have an office in Ajman, and not just in Dubai. However, buyers are urged to take due diligence when looking at low-priced properties.

"We would encourage buyers looking at extremely low priced property to ask the following two questions: is there a trust account (escrow) to protect their funds and what is the build quality of the project since this will determine whether it is sellable or rentable in the future," Rehan Khan, chief operating officer of Cirrus Developments, said.

Inviting options

Dh299 price for per square foot in Ajman realty market now
Dh600 price for per square foot in Ajman six months ago
Dh883 price per square foot in Dubai property market now



Emphasis mine - still think 550 -600 a good price?

http://news.wadionline.com/news/10544/low-rates-make-ajman-property-attractive