When talk turns to property investment in the UAE, Dubai is usually the main topic of conversation. However, recently the tiny emirate of Ajman - which it would be fair to say that a few years ago, no one had even heard of - is starting to be mentioned as the next big thing.

A superb two bedroom villa property for only £149,794

With a land area of just 260km2 it’s hardly surprising that this compact emirate has been overlooked by many, but to avid investors in Ajman property, size matters not a jot.

Ajman’s low property prices which average around 650 (AED) per square foot, compared to Dubai where the average price is nearer 1600 (AED) per square foot, are attracting ever-increasing numbers of investors.

Ajman’s proximity to Dubai is also seen as a major plus point; many of the new wave of property developments are situated close to the Emirates Road which means that Dubai International Airport is reachable within 25 minutes, with Dubai’s headline-grabbing tourist draws only a short car journey away.

Add to this the prospect of the new Dubai Metro system being extended to link to Ajman, the massive port redevelopment and the millions of dollars of investment by the Government of Ajman into a raft of major infrastructure projects, and it’s easy to see why this dynamic emirate is finding favour with switched-on investors.

Arguably two of the most appealing new property offerings are the Burj ul Ain Tower and the Chapal Flora Residences, both of which are located conveniently close to the Emirates Road.

Stylish, fully-furnished studios at the Burj ul Ain are available for just £41,321 (GBP). One bedroom apartments start at £61,589 and two bedroom units can be bought for only £90,859. Burj ul Ain properties also come with an unprecedented 9.69% rental guarantee, making them an ideal purchase for buy-to-let investors.

Although villa properties in Ajman are relatively rare and hence, much sought-after, it’s possible to pick up a two bedroom, two bathroom villa with private covered parking at the Chapal Flora Residences (pictured) for as little as £149,794.

Ajman may never rival Dubai in terms of fame and glamour, but with such advantageous property prices, convenient closeness to Dubai and a forward thinking government eager to attract inward investment, Ajman is beginning to make its mark on the world of international property investment.

For more information on the properties mentioned, call (00 34) 952 765 993

Egypt Property Report 27th August 2008 -

Overseas investors should look outside the eurozone for property bargains as the euro rises in value against the weakening pound.

Investors should broaden their horizons

Property within the Euro zone is becoming increasingly expensive for UK investors, as the pound continues to fall against the euro, currently sitting at euro 1.26 to £1.

If investors consider properties in countries which are outside the zone, they will get far better value for money.

Holidaymakers are also far less likely to travel to countries within the eurozone while the currency is so strong against the pound, thus reducing demand for rental properties and impacting rental yields.

Stephen Smith, Sales and Marketing Director of Egyptian property developer West Side Village, said, “Investors would be wise to seek destinations outside the zone, where they will be more likely to afford quality investment properties in good locations, maximising their rental opportunities.

“Destinations which are served by regular cheap flights, preferably within a five hour flying time of London, such as Egypt, Turkey, Morocco or Croatia are ideal.

“With property prices falling in the UK, now is a good time to diversify into an emerging market overseas, which can offer high capital growth and strong yields.

“Investors should carefully research the best destination for them, taking into account currency exchange rates, tax laws, tourist levels and the potential for growth,” Mr Smith added.

Source: themovechannel.com

Buyers of Ajman property are now virtually guaranteed a residency visa after the enactment of a recent government initiative aimed at clarifying and simplifying the whole process.

Reassuring News

Investors in Ajman properties will be given visas provided sub-developers give assurance to that effect to master developers.

The visa is issued once the buyer or investor gains procession of the property and the developer issues a no objection letter. It is believed that the issuing of the no objection letter will be a formality.

Several leading Ajman property developers have already announced that they will be signing pacts with master developers for the issuance of the residence visas. Visas are valid for one year and can be renewed on an annual basis. The cost of the visa is set at 1500 Dhs - £220 (GBP).

With properties in Ajman costing at least 35% less than those in nearby Dubai, the easing of visa restrictions looks set to further enhance the emirate in the eyes of switched-on international property investors.

New developments such as the keenly priced Lake Signature Tower which is part of a major real estate project just 25 minutes drive from Dubai are already attracting buyers seduced by an entry level price of just £36,100 (GBP) for high-spec studio apartments.

The assurance of a residency visa coupled with low prices is sure to make Ajman the place to invest for many years to come.

Ajman Property Report: 20th August 2008

Egyptian property Report 14th August 2008

Europes second biggest tour operator today announced that bookings for holidays in Egypt next winter and summer were up on this year’s numbers. Whilst the strong euro seems to be putting many people of European holidays the demand in Egypt continues to rise. This summer’s bookings to Egypt were up 15% from last year and bookings to Egypt this winter are up 25%.

Egypt: A Buoyant Market

The Egyptian Tourist Authority has spent heavily on marketing campaigns in Europe and the US to attract greater numbers of tourists and the campaign looks to have been largely successful. A parallel campaign run throughout the Middle East highlighted the attraction of Egypt to Middle Eastern visitors and resulted in an 89% increase in visitors from Qatar alone.

London based DDB International was awarded the contract to handle all of Egypt’s tourism marketing with a budget set at $40 million a year. The aim of the campaign is to achieve the government’s stated target of 16 million visitors per year, up from 8 million in 2004.

Almost two thirds of visitors were from Europe and many highlighted the great value of holidays in Egypt where many holiday items were less than half the price of established destinations such as Spain and France.

The Daily Telegraph recently highlighted the year round warm climate and the growing popularity of Egypt as a winter sun and beach destination and suggested that investors in property in Egypt could reap substantial returns as Egypt property is low priced yet offers extremely good rental yields.

Michael Kent, Managing Director of Egyptian property specialists Arabian Sands, commented, “Egypt is entering a new phase of economic development with fewer restrictions and concrete government plans to improve the ageing transport infrastructure. Combine this with the most spectacular historical sites and a year round warm climate and all the conditions for serious growth in tourism numbers are there.”

Investors wishing to take advantage of these conditions are urged to consider the Tranquilla Town Apartments in Hurghada currently being marketed by Arabian Sands. Comprising of one, two and three bedroom residential units, the apartments which were built in 1996, are currently undergoing major upgrading to the highest European standards. Once the sale of each apartment is agreed, the upgrading work will commence and the property will be ready to use in just six months.

“The beauty of this investment is that not only do you get a fantastic location but also you’ll be ahead of the game and earning rental income in six months” added Mr Kent.

Prices for an apartment start from only £24,600 – please contact info@arabiansands.com for more details or look here

The first phase of the new, $3.3 billion (USD) Ajman International Airport is scheduled for completion by 2011. The airport is to be built by a Spanish consortium, Groupo Inmobiliario Whitelake and when finished the huge, six million square metre site will include residential and business areas, a free zone and aircraft maintenance facilities.

Ajman property: The new destination of choice for UAE investors

The airport will be the UAE’s 4th major airport, and when fully operational, is expected to serve 1 million passengers a year, as well as handling over 400,000 tonnes of air cargo.

It is envisaged that the airport will target low-cost carriers which will be welcome news to investors in Ajman property - Real estate located within a 45 minute drive of an airport, typically receive a 20% price uplift whenever budget carriers announce new routes to the destination.

Construction is due to commence by the second half of 2008, and subject to approval from the Federal Aviation Authority. the project will be executed in two phases.

According to reports in the Middle East press, there has been a dramatic rise in the number of businesses setting up in the Ras Al Khaimah Free Zone.

Booming economy is good news for Ras Al Khaimah real estate investors

During the first half of 2008, 847 new companies registered in the Free Zone, the total number of firms operating from the zone now stands at 4,773 bringing a combined total investment of more than 10 billion (AED).

Chief Executive of the Ras Al Khaimah Free Zone Authority, Osama Al-Omari is quoted as saying: “The first half of the 2008 has witnessed the a record rise in the number of international companies which registered at the zone” He added firms are benefiting from the logistic services we provide for our clients and investors in the zone”.

Mr Al-Omari who is also the Secretary General of the World Economic Processing Zones Association continued: “The next three years are expected to witness an even bigger increase in the number of companies registering to operate from RAK”.

Arabian Sands Comment: This news comes as no surprise to those who have invested in Ras Al Khaimah real estate. The superbly positioned La Hoya Bay Residence is on Al Marjan Island and only a short drive from the RAK Free Zone; La Hoya Bay is seen by many as a prime buy-to-let investment opportunity due to its attractive waterfront location which has become a favourite residential area for business people working in the Free Zone.

Ras Al Khaimah Property Report 29th July 2008

Egypt’s real estate market activity is increasing at the rate of 40%, according to Prime Minister Ahmed Nazif, who expects more growth in the market in the coming months. Property is increasingly open to foreign investors and tourists.

Egypt property: A rip-roaring success

Speaking at the opening of the fifth Inter Build conference and exhibition in Cairo last week, Prime Minister Nazif said that also the building industry has seen a boom with year-on-year growth currently at 15%.

“Under a new building law, owners of apartment buildings will be forced to carry out maintenance works and consequently promote building maintenance services,” the Prime Minister announced.

The new law, meant to regulate construction, demolition and maintenance works of buildings in urban and rural areas, would certainly have positive effects on the building market, Nazif added.

Also for foreign investors, Egypt’s property market has been rapidly opening up. The introduction of mortgage facilities for foreigners is now imminent, and there are no domestic inheritance or capital gains taxes for foreigners engaged in Egyptian properties.

The boom in the Egypt property market follows a liberalisation in investment and property laws, but is also a major consequence of Egypt’s steady growth as a tourist destination.

Especially the country’s newly built Red Sea resorts, with relatively short flights from Europe and pleasant temperatures all year round, have attracted an ever-growing stream of tourist-related real estate and other construction projects.

As properties in classic holiday resorts such as Spain and France have turned expensive, the market has turned to new countries such as Turkey, which has been flooded by property buyers for years. But as also Turkey grows more expensive and the best properties are grabbed, European attention is now also directed towards Egypt, Morocco and Cape Verde.

However, the real estate markets in all these three countries still are in an emerging phase, representing some risks for buyers. Many serious property agents in Europe are now marketing Egyptian properties aggressively, often exaggerating the “certain boom to come” and the security of the investment.

Source: www.bi-me.com

Khoie Properties, the real estate arm of the $2 billion UAE-based Khoie Group, was one of the early movers in the Ras Al Khaimah property development market when the company announced the Dh1bn La Hoya Bay in Al Marjan Island development.

Ras Al Khaimah: The next Dubai?

In addition, Khoie Properties has gone on to acquire land worth Dh750 million across Dubai and Abu Dhabi, and will announce Dh3bn worth of projects in the two emirates by the end of this year.

The group is also branching out into the financial sector with a subsidiary called Khoie Finance, which will be registered at the Dubai International Financial Centre (DIFC).

In an interview with Emirates Business, Frank Khoie, Chief Executive of Khoie Properties and the Group, said: “The paper work is still underway and we hope the final approvals from DIFC will come through by early 2009.

“We already have in-house financing options but we are looking to set up something on the lines of what finance companies in Dubai are offering.”

Beside Khoie Properties, other group subsidiaries include Khoie Constructions, Khoie Trading, Khoie Industries and Khoie Education. Excerpts:

Give us a construction update on La Hoya Bay?

There are five elements in the project: La Hoya Bay Residences, La Hoya Bay Business Village, La Hoya Bay Regency, La Hoya Bay Hotels and Apartments and La Hoya Bay Marina and Yacht Club.

The first comprises seven towers and 1400 residential apartments. We are nearing 20 per cent completion of the project and have currently finished the first level on the residences. Our target is to complete the project by March 2009.

La Hoya Bay Business Village is a half-a-million square feet of office and retail space and is scheduled for completion by March 2009 as well.

La Hoya Bay Marina and Yacht Club are in the design stages currently. We plan to provide 500 berths for boats in front of the hotel. It will be completed by December 2009.

The La Hoya Bay Regency, an old European-style village development, will be completed by December 2010.

The La Hoya Bay Hotels and Apartments will be a three-cluster development connected to each other, offering 200 five star hotel units along with 700 serviced apartments. It will be completed by June 2010.

You are announcing projects in Dubai and Abu Dhabi but is your focus largely on Ras Al Khaimah?

Not really. We will look for opportunities in Dubai, Abu Dhabi and Ras Al Khaimah equally. These are our three main focus areas. Ideally, our business sense tells us to go where the opportunity is.

What are the key features of the La Hoya Bay development?

On La Hoya Bay alone, we are building 5000 residential units, half-a-million square feet of office space, a total of 200 five star hotel rooms plus a cluster of approximately 5,000 serviced apartments.

Further, we are taking the logistics of transportation within the development very seriously. We will buy 50 taxi boats and 50 cars, which will be used to provide chauffer-driven private taxi service.

Each of our subsidiary companies that are providing infrastructure within La Hoya Bay has invested a minimum Dh1m on just the infrastructure of the project.

The office space within the project will function as a free zone. An investor buying office space in La Hoya Bay will automatically get a free zone licence. We obtained the free zone permit from the authorities at a very early stage of the project and to date in Ras Al Khaimah the La Hoya Bay is the only exclusive free zone development.

What are your plans for Abu Dhabi and Dubai?

We have a land bank worth Dh750m across Dubai and Abu Dhabi. Whatever we build there will be community-oriented developments along the lines of La Hoya Bay. We will not simply build one single tower and call it a property development. We will announce projects worth Dh2.5bn in Dubai alone and Dh1bn in Abu Dhabi by end of this year.

With the high inflation in the country, which is expected to rise further in 2009, have your profit margins come down?

Unquestionably, there is a certain amount of pressure being built up by the constantly rising oil prices and the competition. Our property prices are appreciating 10 per cent every month.

The net profits average 15 to 20 per cent. We don’t think that is low as our volume of sales is high. As an example, for someone with a turnover of Dh100,000, earning a revenue of Dh15,000 could be a small amount. But for someone making sales of Dh1bn or Dh2bn, the total value of the revenue earned at a similar profit percentage will be substantial. Even after the rising costs that we need to consider, our net profit at 15 to 20 per cent is still high in global terms.

What is Ras Al Khaimah doing regarding infrastructure development?

Infrastructure development implies taking care of four essential factors – water, power, sewerage system and telecommunications. As far as telecommunications are concerned, Etisalat is doing a good job. For water and sewage, there are desalination plants already in place and a sewerage system is being worked out. As regards power, the issue is that it takes time to build power stations. Power shortages are everywhere, even in Dubai, but we know massive power plants are being constructed all over the UAE. Until they are completed there are always alternative generators to provide power. On the La Hoya Bay project, we don’t have a sub-station set up, but power will either come directly from Ras Al Khaimah Investment Authority (Rakia) or the Federal Electricity and Water Authority. In addition, there will be one sub-station of 400 megawatts in order to provide sufficient power to the entire island.

Where is Ras Al Khaimah heading at the moment?

Prices in Ras Al Khaimah are only one–third or half of Dubai prices. So there can be only one prediction for the emirate, and that is an upward movement of property prices. We anticipate prices to double in Ras Al Khaimah in two years’ time.

There is talk of a possible oversupply looming in Dubai and many say developers are currently riding a wave in the realty sector and not really heeding the warning signals. What are your comments?

Oversupply could become a reality in the market, but it will correct itself when prices come down. There is no uniform law in corporate behaviour. Every developer has his own intelligence gathering and analysis team to advise him.

We believe in sustainable development and long-term thinking. We have our cash flows all worked out and we are being advised by professional consulting companies such as Ernst & Young and by banks such as National Bank of Dubai and Abu Dhabi Commercial Bank.

Property is always cyclical and in Dubai there is a desperate need for low-cost housing with services. We are planning on adding 3,000 low-cost housing units in Ajman as soon as we find suitable land.

Do you have a fixed payment plan that you are adopting on your projects?

Developers need to gain the confidence of the buyers in the market, particularly since they are buying off-plan from us. As a rule, all our projects offer 30 per cent payment until completion and 70 per cent pre-approved 10-year in-house financing from Khoie Properties.

The in-house financing option is not mandatory but it’s just an added service we offer. We think we are fairly competitive with respect to what Amlak and Tamweel have to offer. We are charging an interest rate of 1.5 per cent per month.

Source: www.business24-7.ae

Long overshadowed by its more glitzy neighbor Dubai, Abu Dhabi is just now beginning to emerge onto the world stage. Until recently, the wealth of the Emirate was a result of its large oil reserves. However, realizing the importance of economic diversification, the government of Abu Dhabi has begun to lay down the foundation for sustainable tourism and banking industries.

Abu Dhabi property: Worth shopping for..

The numbers coming out of Emirate’s fast-growing property market are astounding. The construction industry was worth $6.5 billion in 2007, and between 2005 and 2007, the value of land shot up from an average of $540 per square meter to $1,100 per square meter, according to a study by Colliers International. The percentage represented by the Abu Dhabi mortgage market in the UAE is predicted to leap from 5 percent in 2007 to 22 percent this year.

The study also found that office space occupancy rate is at 99 percent. Demand in this property sector mainly comes from growth in the service and banking industries. In addition, the openings of subsidiaries belonging to multinational companies and expansions of existing businesses along with Abu Dhabi’s economic growth have contributed towards maintaining the impressive occupancy rate. Current asking rents are about 25 percent higher than “incumbent neighbors paying passing rents,” according to Colliers International.

With occupancy rate of 98 percent, the residential market is also growing fast and trying to keep up with demand. Rental prices rose by 22 percent in 2008 when compared to figures from 2007.

The price of residential properties in the city rose by 53 percent from January to April of this year when compared to the same period in 2007, a recent article in The National, Abu Dhabi’s English newspaper, reported.

Short excerpt from a recent Abu Dhabi property news article. Source: www.nuwireinvestor.com/

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Ras al Khaimah has become the second emirate in the country to introduce escrow accounts for off-plan properties following Dubai in September last year.

Improved laws for RAK property investors

The RAK Government yesterday announced that Sheikh Saud bin Saqr, Crown Prince and Deputy Ruler of Ras al Khaimah, issued Amiri Decree Number 22 on July 3 pertaining to the “creation of guarantee accounts for Ras al Khaimah property development projects”.

“It is very similar to Dubai’s escrow law,” said David Sanson, a partner in the Dubai-based property practice of DLA Piper, an international legal firm. “It shows that the other emirates are looking at what Dubai has been doing in terms of property regulations. This will increase investor confidence in the emirates as a whole.”

According to the decree, developers wishing to sell off-plan units must now apply to the Ras al Khaimah Investment Authority (Rakia) to open a “guarantee account”, or escrow, in which amounts paid by buyers towards property purchases, or by project financing parties, are deposited.

Developers licensed to carry out property development activities in the emirate should be registered in the “Register of Developers”, to be prepared by Rakia. To open the guarantee account, the developers must submit a set of documents including: the title deed or affection plan of the plot; a copy of the contract executed by the master developer and the sub-developer; conceptual designs and layouts approved by Rakia; the trade licence of the firm; and a financial statement authenticated by a certified legal accountant on the revenues and expenses of the project, among others.

Developers will no longer be allowed to advertise in local or foreign media, or participate in exhibitions to promote the sale of Ras al Khaimah property off the plan, until they have obtained a written permit from Rakia.

Upon approval, the guarantee account would be created under a written agreement between the developer and the account trustee – either a bank or a financial institution certified by Rakia. Rakia is also authorised to become an account trustee, providing guarantee account services.

Any amount of money paid by buyers of off-plan units, or project financiers, must be deposited in the special account opened in the name of the property project with the account trustee. If the developer has more than one project, separate guarantee accounts must be opened for each project.

The decree states that the guarantee account must be used exclusively for the purpose of Ras al Khaimah property projects. Payments will be made to the contractors and suppliers based on the progress of the project, and in accordance with the agreement concluded between the developer, the contractor and the consultant.

The account trustee has to retain five per cent of the total amount deposited in the account after the developer has finished the project and receives a completion certificate. Those reserved amounts shall not be paid to the developer until a year after the units are registered in the names of the buyers, or unless the developer issues a bank guarantee for the same amount valid for one year.

The registration process would be cancelled if the developer does not tender the project or award it to a contractor within six months from the date of approval to sell off-plan.

Stiff penalties including fines starting at Dh100,000 (US$27,000) will be imposed on any developer who fails to meet certain provisions of the decree.

Source: www.thenational.ae