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Ajman's property sector shows robust figures despite finance crisis.

Byline: Investments into Ajman's property sector have crossed the Dh400 billion mark, according to reports.

Dubai: Investments into Ajman's property sector have crossed the Dh400 billion mark, according to reports.

Despite deflated markets around the world and also here in Dubai, such robust figures mark a good year ahead for Ajman and its investors.

Property prices also saw an overall appreciation of 40 per cent in 2008.

Fahad Sattar Dero, chief executive of Sweet Homes, also developing in Ajman, said his company is still selling units at old rates but the financial crisis has resulted in an undervaluation of properties.

"We could not deny that we are affected. However, we are confident that the effect on us has been comparably less than on others. We still consider Ajman as a place of opportunity for real estate investments." Dero said

"As the effects of the fin-ancial crisis manifest in the UAE, companies and residents are forced to cut down on expenditure, thereby driving the demand for inexpensive housing," he added.

Predictions

The CEO predicted a 33 per cent dip in housing prices in Ajman - compared to pre-recession years - in the first quarter of 2009.

With developers offering their own payment plans, rendering the need for bank financing void and with the wheels in motion for the escrow account law to soon be in place in the emirate, next year should see a flow of interested investors.

"Ajman offers affordable pricing backed by developer finance packages with flexible and affordable payment terms, as an alternative to bank finance. Lastly, the land department of Ajman has started implementing the escrow account, which guarantees the security of real estate investments within the emirate," Sattar Dero added.

Sweet Homes yesterday announced 70 per cent of its Dh3 billion Ajman Uptown project has already been sold.

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Publication:Gulf News (United Arab Emirates)
Date:Dec 30, 2008
Words:316
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