Ajman property prices decline by 20% this year

Market expected to stabilise next year, says Arra official

Property prices in Ajman have fallen by 20 per cent this year compared to 2010, with the market likely to stabilise next year, according to a senior government official.

“We have seen a price correction of 20 per cent from last year. We expect the market to stabilise next year with prices likely to fall by another five per cent,” Ajman Real Estate Regulatory Agency (Arra) Executive-Director Yafea Eid Al Faraj told 'Emirates24|7'.

“The market is picking up… the trust of the investors is coming back… More Europeans are buying properties here.”

Although Al Faraj did not share the number of sale transactions being registered with Arra on a daily basis, he said the secondary market had been “quite” active in the emirate over the past few months.

“Resale is happening big time,” he added.

Asked if the announcement of federal three-year property visa will help the emirate’s realty market to rebound, Arra chief said: “Previously, most of the investors had invested in Ajman for a visa... its no longer a motive. Those buying property want to either live in it, or just buy as an investment… visa is the secondary thing for them.”

In June, the UAE federal government announced extension of visa for real estate investors from six months to three years, but no details have been released to date.

In an earlier report, CB Richard Ellis said despite widespread market negativity many investors were breathing a collective sigh of relief with a number of developments now handed over in Northern Emirates.

Increased construction activity is taking place on projects along the Emirates Road and for developments in the City Centre, Ajman, including Ajman One, Ajman Pearl and the remaining components of the Garden City development.

Arra chief told this website yesterday that it was offering investors a property swap option at the current market price.

“We have a solution for them (investors in stalled projects or in projects haven’t been constructed)… we are offering them a swap facility and that too at the current market price.”

He also revealed that the mediation committee was on the verge of settling claims worth Dh250 million for a project following settlement of claims worth Dh1.4 billion on Al Helio Downtown project.

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