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.

Residential properties within ‘Ajman Uptown’ and ‘Rainbow Towers’ to be delivered by 2010

Ajman to add 150,000 housing units within next 3 years

Residential properties within ‘Ajman Uptown’ and ‘Rainbow Towers’ to be delivered by 2010

May 25, 2009

Approximately 150,000 housing units will be completed in Ajman within the next three years, according to estimates by leading industry sources. This includes high profile residential properties such as the luxurious villas within ‘Ajman Uptown’ and state-of-the-art apartments within ‘Rainbow Towers’. As the company behind both projects, Sweet Homes Holdings (SHH), a leading UAE-based developer and multi-service provider to the real estate sector, has announced that it will be one among the few real estate players who will be able to deliver projects from its AED 4.7 billion portfolio by 2010.

In line with the regulations set by the Ajman Real Estate Regulatory Authority (ARRA), Sweet Homes Holdings has recently announced that it has signed an agreement with Dubai Islamic Bank for the escrow accounts of its ‘Ajman Uptown’ and ‘Rainbow Towers’ projects. This follows the developer’s registration with the ARRA, which made it one of the first master developers to adhere to the rules set by the newly-formed agency. Furthermore, SHH has taken on all aspects of development within ‘Ajman Uptown’, with its construction arm - Sweet Homes General Contracting (SHGC) undertaking the AED 2.2 billion main contract, as well as the project’s initial groundworks.

“Although we are undoubtedly affected by the slump, we remain steadfast in our commitment to hit our delivery targets for our projects, and we are taking all necessary measures to cultivate investor trust and confidence,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings. “As a leading master developer of one of the biggest community development projects in Ajman, we have promptly completed most of the necessary steps to comply with ARRA’s regulations. We take pride in the strong fundamentals and financial backing of our organisation, which drives our operations amidst these challenging times.”

Sweet Homes Holdings further revealed that ‘Rainbow Towers’ is witnessing exceptional progress, and that they are on track to deliver the project by 2010. The most recent developments in the project’s construction is the awarding of the AED 450 million main contract to Sharjah-based Master Civil Construction Company (MCC) for three of the nine 31-storey residential buildings (B10, B14 and B15), which comprise the entire project. The developer also pointed towards its successful partnerships with construction firms, suppliers and subcontractors, including world-class architectural firm Eng. Adnan Saffarini Office as the primary consultant for the projects as vital contributors to the steady progress of the projects.

”As we focus on the construction of our flagship project, we continue to reinforce our efforts and resources to ensure the timely completion of our developments as part of our pledge to our customers. We are positive that investors recognise and appreciate the initiatives we are taking for this purpose, and we guarantee that we will remain on track to deliver their properties as we have promised to them,” concluded Dero.

Sweet Homes one of the first to register with Ajman Real Estate Regulatory Authority

Sweet Homes one of the first to register with Ajman Real Estate Regulatory Authority

Developer currently in the process of registering escrow accounts to cover all projects

April 21, 2009

Sweet Homes, a leading UAE-based developer and multi-service provider to the real estate sector and part of Sweet Homes Holdings (SHH), has announced that it is one of the first private master developers to register with the newly-formed Ajman Real Estate Regulatory Authority (ARRA). The master developer of the AED 3 billion ‘Ajman Uptown’ project has also revealed that it is currently in the process of registering escrow accounts for all of its projects, in accordance with the rules and regulations set by the agency. Established under the Emiri Decree No. 8 for 2008, ARRA reflects the Ajman Government’s commitment to provide a secure investment climate, thereby allowing growth and ultimately a sustainable economic development for the emirate.

According to the regulations set by ARRA, developers looking to build projects in Ajman are required to open an escrow account in one of the banks approved by ARRA, wherein they have to deposit all the money paid by investors in the account. The move seeks to protect investors, and to guarantee the security of the investment of end-users. Sweet Homes’ prompt response to ARRA’s call for regulatory compliance underlines its adherence to rules and procedures that are aimed at protecting the investors’ funds, and its deep resolve to contribute to the growth of Ajman as a real estate destination.

“The current economic crisis has made it important now, more than ever, to remain vigilant to ensure that all aspects of the property development business are in accordance to the law,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings. “Our move to register escrow accounts for ‘Ajman Uptown’ and ‘Rainbow Towers’ projects underlines our commitment to the implementation of laws in order to support ARRA’s deep resolve to implement all the rules and regulations, which are aimed at setting new industry benchmarks in the emirate. We are confident that our investors will appreciate our zealous efforts to ensure that their investments are looked after, which will ultimately garner the excellent returns they are aiming for.”

The main focus of ARRA is to regulate the business and real estate development within Ajman and to set the policies and legislations for licensing the real estate projects in the emirate. Moreover, the agency maintains the overall supervision for the implementation of these policies, regulations and plans of action. It also organises the joint ownership among investors of the property units within these projects.

“Our eagerness to follow all the rules, legislations and regulations set by ARRA reiterates our strategy of building on the confidence of potential customers to attract them into investing in our projects. We commend the excellent efforts of the Ajman Government in terms of establishing an important component to a successful real estate market in the form of ARRA, and we are optimistic that this initiative will result in major improvements in organising of the real estate market in Ajman and in the way real estate transactions are done in the emirate,” concluded Dero.