Sweet Homes eying a larger share of Ajman’s booming real estate
UAE. Sweet Homes, a leading UAE-based developer and multi-service provider to the real estate sector, has announced that it will be launching a host of projects within the AED 120 billion Ajman real estate market, as part of its AED 2 billion investment plan for 2008.

Property in  Ajman - The Emirates Rising Star

According to the most recent statistics released by the Ajman Chamber of Commerce & Industry, the growing popularity of Ajman property developments among global investors has resulted in the boom in the Emirate’s foreign direct investment (FDI), which has exceeded the rest of the other Emirates by 300%. Through the launch of its new projects, the developer is aiming to attract greater investment into Ajman, which will further boost the real estate sector within the Emirate.

Ajman has eclipsed the other Emirates in terms of attracting foreign investments into the country, with foreigners now owning 33% of development projects established in the booming city compared to 11% in the other Emirates, thereby elevating Ajman’s annual investment growth rate to an average of 6.7%. In addition, expatriates and GCC nationals are also being drawn to the relatively lower prices of properties in Ajman compared to the skyrocketing costs of investments in Dubai and Abu Dhabi.

As more private developers are being encouraged to launch residential properties in Ajman aimed at low- to middle-income end-users, especially in the Emirates City along the Emirates Road, Sweet Homes has identified Ajman as an ideal location for a large percentage of its future projects.

“There is a strong possibility that Ajman will be able to replicate the success it has witnessed during 2007 due to its intense focus to become a leading tourist, residential and investment destination,” said Fahad Sattar Dero, CEO, Sweet Homes Group.

“Amidst the government’s massive initiative to develop an investor-friendly business climate that is attracting stakeholders from all over the world, we have recognised the potential in providing a community development that addresses investor’s requirements for residential and commercial built space. Ajman definitely lives up to our expectations, and we are currently on the process of developing more high profile projects in the Emirate.”

A special department has been set up by the government to regulate the booming Ajman real estate sector, which has been steadily growing since 2004. At present, freehold and escrow account laws in addition to ’strata’ property laws similar to those adopted in Dubai, are being drafted by the new Ajman Development and Investments Authority. Moreover, urban development projects worth AED 580 million, investments into maintenance services and infrastructure projects amounting to AED 174 million, and an AED 800 million sanitary water treatment project, were recently undertaken by the government in an effort to attract more local, regional and global developers and investors.

As one of the most prominent developments in Ajman, the ‘Ajman Uptown’ project has attracted elite investors and high profile developers due to its outstanding concept and offerings, which match the emirate’s strides in infrastructure, roads, service improvements, telecommunications, ports and free zone development. The AED 2.5 billion residential township is the first freehold villa and townhouse community in Ajman, which will comprise a total of 1,504 G+2 Ajman villas and townhouses and seven G+4 buildings spread over 4 million square feet of land that is directly accessible from the Emirates Road and adjacent to Emirates City. In addition to its ideal location, the development is also catching the attention of investors due to its unique flexible four-year self-financed payment scheme.

“The investment boom in Ajman property enjoys complete legal and legislative protection with laws being constantly updated for the benefit of investors and developers. By reflecting a very positive image through its massive infrastructural transformation, Ajman’s development as an Emirate complements the vision we have for Ajman Uptown as a premier commercial and residential community,” concluded Dero.

Source: www.bi-me.com

According to a press release dated: 26th May 2008, two leading United Arab Emirates (UAE) finance firms are planning to offer mortgages to Egypt property buyers. The finance companies, Amlak and Tamweel are expanding their mortgage lending activity to take advantage of the boom in the Egyptian property market at the same time, reducing their dependence on the still flourishing local market.

Egypt Property: Encouraging Signs

Mortgage financing of properties in Egypt is a relatively new innovation. That said, it still amounted to over Dh687 million in 2006, more than doubling to Dh1.37 billion in 2007. The Egyptian Government has set a target to increase this to Dh3.44 billion by the latter half of 2008. Amlak and Tamweel hope that this planned escalation of mortgage lending will help them gain a significant slice of the Egyptian mortgage market.

Egypt is the largest Arab country in terms of population has seen GDP increase by 7% from 2006 to 2007. In the medium term, this trend is expected to be sustained, although, because of the global slowdown this could be at a slightly slower pace than previous years.

The continuing demand for Egypt properties can be attributed to several key factors. Egypt’s buoyant economy is fuelling demand from the bourgeoning professional classes who have seen their incomes rise substantially in recent years. Relative political stability has led many of the biggest names in Middle Eastern construction to launch Egyptian property projects. Construction giants such as Damac and Emaar have in turn have attracted overseas property investors who appreciate the combination of top quality Egyptian real estate developments and ultra-low prices that have been set reflect the price sensitivity of the local market.

The wide scale development of new houses for sale in Egypt means that companies with the enterprise of Amlak and Tamweel are sure to benefit from the increasing demand for mortgage products coming from prospective Egyptian property buyers.

Over Dh15 billion in investments will be ploughed into the Berjal City in Ajman, the new real estate venture partnered by two companies in Saudi Arabia and the UAE. The mixed-use real estate project in Ajman, launched yesterday by Saudi company Berjal Real Estate and Ajman’s Al Rashid Real Estate, will consist of 91 residential, commercial and administrative towers, as well as a shopping haven on the lines of the well-known Mall of the Emirates in Dubai.

Ajman Property: A Towering Success

Abdullah Ali Al Nasser, executive manager said: “In terms of size, the project may be smaller compared to the similar developments in Dubai, but in Ajman, it will be a unique, fantastic site.”

The two real estate companies offer plots to investors and realty developers on a freehold basis, anticipating the investment in excess of Dh15 billion. Saudi-based real estate company is expected to pave the project site and set up the necessary infrastructure, while Al Rashid is looking at the marketing aspect of the project in Ajman.

Source: http://www.gowealthy.com/

Chris Watts of Arabian Sands Commented: “I am not surprise to hear about this latest Ajman property launch, although Ajman is smaller than neighbouring Dubai, I have no doubt that the quality of properties in Ajman will ensure this small but ambitious emirate will continue to hit the headlines”. He concluded: “Ajman properties are proving popular with investors looking for an alternative to Dubai property“.

Earlier this month the Al Zorah Development Company announced the launch of the Al Zorah project. This massive new Ajman property development has in effect, also launched the previously little known emirate onto the international investment property stage. When complete, Al Zorah will be a mixed-use community of some 200,000 people.

Ajman Property: The next investment hotspot

Al Zorah is an ambitious project instigated by His Highness Sheikh Humaid bin Rashid Al Noaimi, who is a Member of the UAE Supreme Council and Ruler of Ajman. The project aims to transform Ajman’s coastline into a world class residential, business and leisure community. The Sheikh is the chairman of Al Zorah Development Company which is a joint venture between the Government of Ajman and Solidere International Ltd.

Occupying a huge area of 12 km2, this stunning Ajman property development will be a master-planned, self sustaining community featuring residential, business and leisure areas. Al Zorah, has a massive budget of AED220 billion and although only just launched, the venture has already attracted pre-sales of around AED10 billion for Phase One of the project.

At the recent ground breaking ceremony, Imad Dana, CEO of the Al Zorah Development Company said: “Al Zorah will be a sustainable city in all respects, adopting best practices in environmentally friendly construction and living,”He added: “Developers will conform to the master plan requiring them to leave the natural beauty of the project location unharmed and employ energy-efficient construction methods as well as materials”

Mr. Dana continued:”The city will also promote conservation and outdoor life by providing an integrated network of walkways, canals, waterways, bicycle paths and public transport facilities, jogging tracks and equestrian centre. It will make Ajman the best place to live and work comfortably in close proximity to the major hubs and gateways in the UAE”.

The development is being constructed along Ajman’s immaculate beachfront and creeks, it is hoped that Al Zorah will transform Ajman into a world class residential, tourism and investment destination. The self-contained city will feature a mix of residential dwellings, commercial offices, retail outlets, schools, hotels, hospitals and leisure facilities including a championship golf course, marinas and a number of 5-star resort hotels.

Al Zorah has been granted free zone and freehold status. This initiative will be welcomed by potential investor in Ajman property and looks certain to encourage major international investment into the emirate. It was also announced that a new 8.5 km highway will be built to link Al Zorah to the main Emirates Road which will facilitate easy access to Dubai International Airport.

It is understood that construction will be limited to around 235 million square feet with the remaining area allocated for green spaces, beaches and open squares. This will result in 60 per cent of the total land area being reserved exclusively for public spaces. Furthermore, Al Zorah will benefit from 16 kms of waterfront, three kilometres of which will be the existing white sandy beaches.

Tourism figures in Egypt grew by 20 per cent in 2007 according to the United Nations’ World Tourism Organisation (UNWTO).The increase has fostered demand among investors looking to rent accommodation to the new influx of travelers. Of the 46 million tourists visiting the Middle East in 2007, some ten million went to Egypt – creating a large potential market for accommodation.

Tourism: Fuelling demand for Egypt property

“This is excellent news for the buy to let market,” said Marion Isom, managing director of La Siesta Tourism and Real Estate Services.

“Tourism figures always have an effect on the property market of a region and this rapid growth in interest in this amazing country is a welcome step forward.”

It is now thought the Egyptian government’s aim of achieving 14 million visitors by 2011 is achievable. The World Travel and Tourism Council estimates tourism to Egypt will grow at the rate of around six per cent annually in real terms in the next decade. The country’s government is also keen to bolster investment from abroad.

Stamp duty on Egypt property, along with capital gains tax and inheritance tax (for British citizens living in the UK and if property is left to family members) are all zero. There is also no tax for non-resident owners in Egypt. These incentives now appear to be making an impact. According to the Institute of International Finance (IIF), the net foreign direct investment (FDI) to Egypt was 8.2 per cent in 2006/2007. This is up from 0.5 per cent of GDP in 2004/2005.

Source: http://www.aboutproperty.co.uk/news

Colin Timms of Arabian Sands commented: ” This is further proof of Egypt’s continuing attraction. It’s also great news for investors in Egypt property“. He added: “The increase in visitor numbers has been mirrored by the growing numbers of people contacting Arabian Sands to enquire about Egypt property. In the last few months we have recieved many brochure requests for the Sunrise Heights Apartments at Naama Bay as well as a surge demand from people intersted in purchasing on the attractive Luxor Apartments development on the banks of the River Nile at Luxor”.

The world’s biggest collection of cartoon character and thrill ride theme parks is to be built in the desert in Dubai. Legoland yesterday became the latest to sign up for Dubailand, a vast playground of theme parks and attractions on a tract of desert which, when completed, will be bigger than Singapore.

Dubai: Themed for Success

A total of 26 projects will make up the $60bn project, with separate theme parks also planned for Marvel Super Heroes (Spiderman, Incredible Hulk), Dreamworks (Shrek) and Universal Studios.

Thomas the Tank Engine and Bob the Builder will also have their own parks, with US-based thrill ride park Six Flags also opening outside America for the first time. The colossal project will be twice the size of Disney World in Florida, currently the world’s biggest theme park.

Work has already started on Dubailand, with an Ernie Els-designed golf course and three polo fields completed. A new cricket stadium opens in August, then works starts in earnest on the world’s first uber theme park. From December 2010, we will be opening a theme park every six months,” said marketing director Ahmed Tag Eldeen at a conference in Dubai yesterday.

The scale of the project is staggering, with only Las Vegas capable of building on such a scale. Jurassic and Formula 1 theme parks are also planned, as is a wheel bigger than the London Eye and a lifesize replica of the Eiffel Tower. A huge sports stadium and Tiger Woods golf club are also planed – but you only get to play if you buy a villa (from $2m). All will be marketed as Dubailand, with a new rail link being built from Dubai’s centre. Dubai even promises some culture, with the opening of the Islamic Culture and Science building.

The project is the culmination of increased efforts to double tourism to Dubai. Last year, more than 7.7m tourists visited, but Dubai expects 15m to visit by 2015.

More than 20,000 hotel rooms will be built on site, along with thousands of shops and restaurants. The Emirate also wants to boost the amount of time visitors spend in Dubai – currently only 2.8 days. Tourism now accounts for 19 per cent of Dubai’s revenue, a figure expected to increase to 35 per cent by 2020. Source: http://travel.timesonline.co.uk

High Demand

The strong growth of Middle East economies at a rate of 6.5% annually is fueled mainly by the continuing high oil and non-oil commodity prices, ensuring that the combined GDP’s of the GCC economies together with Egypt and Jordan will cross $1,045bn in 2008, thereby sustaining the region’s demand for white goods and consumer electronics, according to industry research.

Capital Growth

Boost to Sales

The strong economic growth is also intensified by the real estate boom across countries in the Middle East that continues unabated and translates into huge opportunity for appliance manufacturers,’ said Eckhard Pruy, CEO of Epoc Messe Frankfurt, organisers of International CES/Hometech. Mr. Pruy noted that: ‘Given the urge to splurge in the region appliance manufacturers can expect to boost their sales volumes in 2008′.

International CES/hometech Middle East that is to be held from May 25-27,2008 at the Dubai International Convention and Exhibition Centre, is a successful platform for the Gulf States, the wider Middle East, North and East Africa, the CIS and the Indian Subcontinent, to source the latest in home technology, home entertainment, home automation, home appliances and domestic devices

He added that ‘In the Gulf Cooperation Council (GCC) countries, investment spending will expand to at least $800bn over the next five years, with major projects in the oil and gas sectors, infrastructure, and real estate‘.

Unabated Growth

Morgan Stanley estimates that GDP for the GCC plus Egypt and Jordan will reach $1,045bn in 2008, more than twice the 2002 figure of $484bn. ‘Industry estimates reveal that, due to the unabated growth in real estate development and spending across the Middle East, the volume of new office space in Dubai will increase from 1.6 million m2 presently to 5.6 million m2 in 2009,’ said Mehtap Kenar, Senior Show Manager, International CES/hometech.

‘Construction of huge new megamalls and expansion of the current megamalls are also planned. Similarly, in Doha, capital and port city in Qatar, more than 16,000 new apartments will be available by 2010, while retail space availability is also set to increase - from 450,000 to 1.13 million m2 between 2007 and 2012. Riyadh is also witnessing huge investments in retail space’.

Surge in Sales

The UAE and Dubai in particular, is among the leading markets for consumer electronics products in the Middle East. Dubai also features as the prime distribution centre for regional electronics sales. Industry analysts believe the surge in sales of electronics products in and through Dubai is due to competitive prices. With diversification of import sources and introduction of new products, huge demand in the Middle East has arisen, giving a new dimension to the scale of supply required.

At International CES/hometech in 2008, professionals will witness the latest trends in home networking, wireless and mobile technology, audio technology, home entertainment, gaming, home appliances and ‘In-car’ technology.

Outstripping Previous Years

Industry experts believe that the prolific product profile of the event will mark it as the most important technology event of the Middle East. The exhibition area on which participants will exchange information and opinions on technologies in IT and consumer electronics will double compared to last year.

Source: www.ameinfo.com

Egypt is intending to boost its tourism earnings by 26% to 12 billion dollars by 2011, so says a report on April 25th by MENA, Egypt’s official news agency. This is great news for Egypt property investors, specifically, for buyers of Egyptian properties who have buy-to-let strategies. The increase in visitor numbers will certainly benefit those buying into developments such as the Luxor Apartments, perfectly placed on the banks of the Nile in historical Luxor, as well as purchasers of temptingly priced property in Sharm El Sheikh on Egypt’s Red Sea Coast.

Egypt’s Economy - Riding High

Capacity

The scheme to increase tourism was launched by Egyptian Tourism Minister Zuheir Garana. Egypt hopes to welcome around 14 million tourists in 2011 which will require a capacity of 240,000 hotel rooms. By contrast, the figure for tourist numbers in 2007 stood at 11 million, MENA reported.

140 Million

The minister announced that Egypt wished to attract private investors to finance the plan. The initiative also entails developing medical tourism and eco-tourism which will further enhance Egypt’s magnetic tourist appeal. The minister said that the Egyptian Government’s role will be limited to overseeing and planning. The scheme, if successful, will see the number of hotel nights spent in Egypt hitting the 140 million mark by 2011, compared to 112 million in 2007.

Positive

The tourism sector accounts for about 20% of Egypt’s foreign currency earnings. Any rise in tourist numbers will have a positive effect on Egypt property values, by both boosting the country’s general economic prospects and further strengthening Egypt’s already buoyant holiday rental market.