Ajman real estate market ready to rebound, says Sweet Homes

Ajman real estate market ready to rebound, says Sweet Homes

Leading UAE developer express optimism for the emirate’s property sector in the upcoming year

July 05, 2010

The Ajman real estate market is ready to rebound, with the emergence of major developments signalling the recovery of the emirate’s property sector, says Sweet Homes Holdings (SHH), a leading UAE-based developer and real estate services provider and the company behind the AED 2.2 billion ‘Ajman Uptown’ community project. Underlining its optimism towards new prospects in the local industry for the upcoming year, the developer also expressed its high expectations in terms of convenience in obtaining mortgage financing, which will drive more people to move to the emirate.

Ajman’s growing strength in the real estate front is being fuelled by the availability of resources that can support various industries as well as residential communities. This includes access to energy at competitive rates and costs, with secured and guaranteed provision and supply on longer terms; raw materials for certain industries and the possibility for extraction of these materials; basic industries for provision of materials required by the finishing and intermediate processing industries; domestic capital and financing; and financial incentives and facilities for investments by many of the domestic and international banks. Furthermore, the emirate’s convenient location and the development of the infrastructural utilities such as the port, roads and transportation also make it an enviable location for community developments such as ‘Ajman Uptown’.

“Over the years, Ajman has witnessed major upgrades as far as infrastructure development is concerned, emerging not only as an attractive site for industrial and manufacturing activities but also as a thriving location for residential projects,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings. “Although the emirate, similar to other emirates in the UAE and cities across the region, had been subjected to the harsh realities of the global financial meltdown, it is steadily gaining back its momentum and is on its way to recovery. As the developer of one of the largest residential communities in Ajman, we are looking forward to leveraging the new opportunities as the real estate sector turns around and opens up new prospects for residential and commercial investors alike.”

With building works on ‘Ajman Uptown’ continuing on a 24/7 basis, the developer continues to report significant construction milestones, including the completion of all sub-structures for the 1,504 villas within the massive community development. Two subcontractors for the project were also recently named including Al Ibhar Electrical Contracting and Elegant Electromechanical Contracting, which will oversee the MEP, air conditioning and fire fighting aspects; and Liwa Building Contracting as the civil sub-contractor. In addition, Sweet Homes General Contracting is also currently building an AED 149 million shopping mall within the project, which is scheduled to be completed by the end of 2012. At present, a total of 2,000 labourers are working on the site in different shifts to be able to meet the project’s scheduled delivery date.

“Construction works within ‘Ajman Uptown’ is proceeding according to our specified timeline, with our appointed subcontractors working continuously to ensure that all processes are completed according to the highest quality standards and in time to hit our delivery deadline. At present, we have completed the sub-structure of all villas, and are currently focusing on the on-going superstructure works for all the VIP villas within the community,” concluded Dero.

Ajman real estate market will benefit from availability of mortgage financing, says Sweet Homes Holdings

Ajman real estate market will benefit from availability of mortgage financing, says Sweet Homes Holdings

Government continues to take crucial steps to regulate emirate’s property sector

July 21, 2009

The Ajman real estate market will highly benefit from the availability of mortgage financing, according to Sweet Homes Holdings, a leading UAE-based developer and multi-service provider to the real estate sector. At present, all developments in the emirate are being acquired through self-financing, with the money going directly to the developers and thereby leaving uncertainties in terms of financial security. The developer added that the introduction of mortgage schemes could boost the efforts being taken by the Ajman Government, as it continues to take crucial steps to regulate emirate’s property sector through the Ajman Real Estate Regulatory Authority (ARRA).

According to banking experts, the UAE mortgage market is stabilising as loan-to-value ratios (LTVs) settle in the 70 to 85 per cent range. In line with this, several leading local banks have revealed that they are lending up to 90 per cent of the original price on selected projects in the primary market direct from developers, while financing up to 80 per cent of the market value on selected projects on the resale market. Furthermore, some banks also divulged that their interest rates currently range between 8.3 per cent and 10.6 per cent, depending on the customer's profile and the LTV. As the market becomes more end-user-driven, the introduction of mortgage financing - similar to those offered in Dubai and Abu Dhabi - in Ajman holds much potential to boost real estate sales within the emirate.

“The exemplary efforts of the Ajman Government to attract property investors has resulted in significant developments, which has put Ajman in a strategic position to overcome the challenges of the economic crisis,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings. “However, we believe that providing mortgage financing for investors who are looking at venturing into Ajman will further encourage investment activities in the market. We are optimistic that combining all these factors will result in greater stability for the Ajman property sector in 2009.”

The master developer of the AED 3 billion ‘Ajman Uptown’ and the AED 1.7 billion ‘Rainbow Towers’ projects has previously revealed the completion of its registration with ARRA, as well as its agreement with Dubai Islamic Bank for the escrow accounts of both projects. The developer also reported exceptional progress in the construction of the two high profile developments, with ‘Rainbow Towers’ and Ajman Uptown Villas on track to hit their delivery deadlines by 2010.

“In the midst of this challenging period, our strategy is to match the efforts of the local government with our commitment to complete and deliver our property offerings on time and ensure that all expectations in terms of quality and convenience are met. We are proud that the construction of our projects is progressing smoothly and that both have recorded excellent sales performance, which gives us an opportunity to focus on our construction activities,” concluded Dero.