Real estate prices in Ajman are likely to rise following the introduction of the emirate's new property law, says a senior official.
The legislation is intended to increase confidence in the real estate market, Sheikh Majid bin Saeed bin Rashid Al Nuaimi, head of the Amiri Court, told Emirates Business. Property developers will have to register with the Ajman Land and Property Department from Sunday under the new regulations.
Dr Hareb Al Aryani, the department's director-general, said land prices in the emirate had increased by 200 per cent over the past four years and were expected to rise further because of the new law.
Registered developers will be given a certificate by the department and will have to open a trust account with a bank before being allowed to launch a project.
"The Government of Ajman is currently negotiating with banks operating in the UAE to open trust accounts for developers," he said. "Buyers will pay funds directly to the bank and the department will control withdrawals.
"The law is intended to protect the rights of all parties involved in the construction process and ensure on-time delivery, and this will increase confidence in Ajman's property market."
The legislation gives freehold title rights to GCC nationals and expatriates while residency and ownership rights are in line with federal legislation, he added.
Real estate industry professionals say a property boom is under way in the Northern Emirates, with prices in Ajman likely to rise by 100 per cent in six months.
One of those forecasting increases is Khaled Raouf, a property consultant with Goldcrest Properties, who said: "Ajman has become the Dubai of five years ago. Property prices are still far behind those of other emirates, ranging from Dh550 to Dh600 per sq ft. The price of a new project in Dubai is Dh4,500 per sq ft."