November 17, 2022
How UAE real estate market is making a bounce back
It might be challenging to maintain your finances and work in a downturn. The weakening economy and the lack of home sales impacted everyone working in the real estate sector, including agents, appraisers, and title businesses.
You may be sure that the UAE is recovering and providing many chances for anyone looking for work, business, or Ajman property investment. The global pandemic brought on by COVID-19 has caused economic disaster in every area of the economy, yet the Ajman real estate market continues to draw foreign investment. Due to restrictions on international travel and massive layoffs, the pandemic significantly impacted the whole world economy.
The Ajman real estate sector is optimistic about going towards 2023, despite experiencing obstacles during the pandemic in 2020 and 2021. Residential real estate is still doing well, despite unexpected developments and unduly pessimistic predictions regarding the retail and office commercial real estate markets.
The Ajman real estate sector displays signs of recovery
The stakeholders in the real estate industry are conducting brainstorming sessions to examine the real estate industry’s future under Ajman’s direction and sponsorship. Real estate development firms, real estate offices, and several officials and stakeholders are struggling to develop various cutting-edge ideas and solutions that would support and hasten the pace of real estate development in the Emirate.
According to the real estate reports, 584 transactions totaling 1.1 billion dirhams were recorded during August, representing an increase of 5.5% over last July. The total volume of real estate transactions totaled 719 million dirhams, recorded through 435 trading operations, including “sales” and “new registration,” which were recorded.
Dealer participation in using the online portal to access the Department of Land and Real Estate Regulation’s different services in Ajman was impressive. In contrast, the department saw a 43% increase in demand for commercial licensing services during the first quarter of this year compared to the same period in 2021. which was estimated at 82 percent, is due to the Emirate of Ajman’s real estate market recovering and an increase in the flow of domestic and foreign investments as a result of the opportunities and facilities that the Ajman government offers to business people and investors, as well as the department’s success in completing a comprehensive digital transformation, which significantly improved the quality of services and enhanced their accessibility.
Moreover, “Ajman Lands” hosts a “Weqaya Project” workshop on July 26, 2022, to increase safety and protect people and property.
Present-Day Economic Situation
The first half of the current year, 2022, saw a rise in economic activity, according to the Ajman Department of Economic Development (Ajman DED). Compared to the first half of 2021, there was a 16% rise in the number of new economic licenses. The expansion and confidence in the business community in the Emirate of Ajman are reflected in the increase and the ongoing recovery from the COVID-19 epidemic. Compared to 2021, when there were 55 industrial licenses, the number of permits climbed by 51% to 83. The state of the economy is a reflection of the efforts undertaken to entice investors, diversify the economy based on knowledge and innovation, as well as to support investors, boost the economy, and allow the Emirate to continue expanding in several industries.
Large properties are in the limelight
Our perception of homes has changed due to the COVID-19-led global pandemic because they have served as our offices, schools, and resting areas during lockdowns. Suddenly, everyone needed a larger area to fulfill their tasks effectively. People began buying larger homes, opulent waterfront villas in Ajman, Seaview apartments, and townhouses on golf courses when curfews and lockdowns were eased. After all, who wouldn’t want to purchase a luxury property as soon as it became available at a fair price? The most significant time to buy real estate in Ajman is right now, like Al Ameerah village, Gulf tower, Ajman creek, Rose tower, and Al Helio villas, before prices increase.
Invest in luxury properties
The UAE is known for its luxury because it has been one of the top ten countries in the world for several decades and has seen substantial development achievements. Nearly 90% of the emirate’s people are foreigners from all over the world. As a result, people think now is the perfect time to invest in Ajman real estate and the city’s real estate is constantly in great demand. Earning a return on your investment is the aim of any real estate investment. The outcome you want should be taken into account when choosing luxury residences. For instance, you might concentrate on flipping to make a quick profit. A luxurious apartment or vacation house you may rent at a profit would be something to think about if you desire a steady income.
Real Estate Lending and Loan
The award-winning Islamic financial services institutions, dedicated to revolutionizing the Islamic banking experience, introduced a new Home Finance offer with an unprecedented profit rate starting at 2.99%. The move, which follows the bank’s signing of an MOU with the emirates Housing Programme in August earlier this year, is part of the bank’s commitment to supporting the expansion of the nation’s booming real estate market. It also aims to address the housing needs of customers and families in the UAE to help them buy their dream homes at the most reasonable prices. For residents and citizens of the UAE, some other banks also have a new Shari’ah-compliant offer with finance amounts up to AED 5 million. For UAE citizens and expatriates, the program offers up to 90% and 85% of the cost of the property, respectively. Repayment intervals may be prolonged up to 25 years in flexible circumstances.
Residential Real Estate Buying Trends
Thanks to the reasonable prices, family-friendly features, and strong rental yields, the real estate markets in the northern emirates of Ajman have experienced stability in sales and rental prices in the first half of 2022.
Ajman Downtown has continued to be the top option for potential renters seeking flats in the first half of 2021. For ready apartments for sale in Ajman Downtown and Emirates City, the average price-per-square-foot in the first half of 2021 was AED 202 and AED 175, respectively.
Government Initiatives for Residential Real Estate Sector
New visa initiatives
An essential factor in shaping the demand for real estate in the UAE, and in Ajman especially, is the country’s multicultural population, which is believed to be 89 percent foreign-born. The government has implemented several ground-breaking visa policies that have positively impacted the market for real estate, including:
a.Ten-year residency requirement for foreigners;
- The ability of international students to sponsor their families provided they meet specific requirements, and five-year renewable retirement visas for retired residents; and
- A new self-sponsored remote work visa allows workers from all over the world to reside in the UAE and conduct remote business from there, even if their employers are headquartered elsewhere.
Nationality of a few foreigners
The UAE government has adopted revisions to the citizenship law that, under specific circumstances, permit businesspeople, professionals, people with particular talents, and their families to become Emirati citizens. Long-term economic growth is the goal of this historic choice, which will support the leadership’s goal of expanding and luring talent. The rise in demand for real estate should be accelerated as a result
Virtual real estate events
Despite the suspension of large-scale shows, all the primary organizers in the real estate industry had to be adaptable and develop new ideas. GJ’s Intelligence, an online portal that enables investors and home buyers to gain general up-to-date information and understanding of the projects in the real estate market as per GJ portfolio, is one such project. Through different public events, seminars, exhibitions, and open houses, investors can find assets that suit their interests and professional requirements, supporting the real estate industry.
Despite the uncertainties caused by COVID-19, the UAE’s response to the epidemic and the many government measures are assisting in the development and recovery of the nation. Despite all the difficulties the pandemic caused to the economy and consumer spending, the real estate market, particularly in Dubai, has demonstrated incredible resilience in the first quarter of 2021 and has begun to rebound, demonstrating this sector’s potential in 2023. It is still early, though, and it is yet unclear how much of an impact Expo 2020 and government initiatives will have on the real estate market.