Whilst Dubai property is usually the Emirate of choice when it comes to making property headlines in the UAE, that doesn’t mean the other Emirates are not doing their own thing too. Abu Dhabi has achieved much success in this regard but has yet to fully move out of its neighbors’ Dubai’s shadow. Ajman property has also achieved a good deal of success by following in Dubai’s footsteps and opening up the property market to foreigners and offering freehold property ownership. However Ajman property has also not found itself immune to the property price crashes seen elsewhere, and now cracks have started to show in the market. With some off plan property plummeting up to 50%, Ajman property is now going through some testing times. The very recently formed Ajman Real Estate Regulatory Agency(ARERA) has already been put to work, with numerous and wide ranging controls being implemented to try and get the market back on track.

Developers are now being required to register with the ARERA and fulfill a number of criteria in order to be allowed to continue to operate within Ajman. These include setting up Escrow accounts and a moratorium on unaudited real estate payments. With a number of developers having taken payments for property that has yet to even see construction start, the government has been forced into tightening regulating in the face of falling buyer confidence. With developers having an initial deadline of the 5th March to begin the registration process, and then the 1st of May to have everything to be complete and submitted, there is not much time before developers are forced to show their hand.

The ARERA is taking non compliance of its new legislations quite seriously, and developers who don’t heed their warning can expect a minimum fine of AED 100,000 and be prevented from doing any business within the Emirate of Ajman. Advertising on unregistered projects will also result in fines. Developers who have not started construction on their projects will also be required to cease taking payments from investors until construction has begun. This new legislation has been welcomed by those involved in Ajman real estate, and the new laws should help stabilize the market and increase buyer confidence, which can only be a good thing at this time.

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