New Laws Will Encourage Ajman Property Investment

The Government of Ajman which is one of the emirates that make up the UAE (United Arab Emirates), have just announced a series of new laws which will make buying property in Ajman more popular with overseas property investors.

 
New Ajman Property Laws: Helping Sales

Last week, member of the Supreme Council and ruler of Ajman, Shaikh Humaid Bin Rashid Al Nuaimi issued two new decrees that have been introduced to regulate the emirate’s embryonic property and land sectors.

The decrees are intended to give freehold status to land and property in Ajman for both UAE citizens and publically listed Ajman businesses. Buyers and developers from outside the UAE will be able to purchase and own land and property, but only in areas designated by the government.

A passage from the new law states that: “Apart from GCC nationals, other expatriates could obtain property on a freehold as well as 50-year leasehold basis which is renewable in areas designated by the ruler”.

Another of the new laws that will be of benefit to potential owners of property in Ajman is the legal framework being put in place regarding escrow accounts. Developers are now required to place five percent of buyer’s deposit into an escrow account which can only be released once the construction process has been completed.

Additionally, when development companies promote and advertise Ajman properties they are required to obtain clearance from the emirate’s land department who are entrusted to review all advertising material to ascertain that it doesn’t mislead potential buyers regarding forecasted capital price growth and over-ambitious completion date claims.

Arabian Sands predict that the enactment of these new legal decrees will further encourage investors to buy property in Ajman which in the last year or so has become a popular choice for overseas investors who are swayed by lower property prices than the rest of the UAE and the more low-key construction projects currently taking shape in the emirate.