A new property law is set to boost Ajman‘s real estate sector which has witnessed solid growth over the last few months.
His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Sup-reme Council and Ruler of Ajman, last week issued Amiri Decree No 7 and 8, 2008, to regulate the emirate’s land and properties sector.
Billions of dollars are being pumped into the emirate’s property sector, where prices have jumped from Dh350 per square foot to nearly Dh500 during the last six months, as investors scramble for a piece of Ajman’s growing housing sector.
The decree comprises 34 articles that legalise freehold ownership of land and property for UAE and GCC citizens and companies wholly owned by them as well as to the public stock companies.
Non-GCC developers and buyers can also own freehold land and property in designated areas that are to be determined and approved by the Ajman Ruler. Foreign investors have snapped up land on both sides of Emirates Road to build master-planned projects in Ajman. « 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, » the law says.
The law empowers the Department of Land and Property to regulate the sector, survey areas, approve the land map and the fees for the services provided by the department and register all properties. The Lands Department is solely assigned to register property rights and long-term leasing contracts.
« The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And no dealings will be admitted unless registered, » it said.
Bank guarantees must be deposited for those who wish to invest in Ajman and that money must be used only for the project itself.
« An amount of five per cent of the project value will be frozen and will not be released until completion of construction of the project, » it stipulates.
The law states that a developer may not advertise projects without written approval from the department.
The developers will be responsible for maintaining the project for 10 years following handover.
A fine of Dh 100,000 will be imposed on those who practice real estate business in the emirate without a licence.
Gulfnews, by Bassma Al Jandaly, June 15, 2008