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Ajman real estate is reaching saturation point

Ajman UAE Creative Commons/PJ Sons
Ajman, which has a population of 480,000 and is not oil rich, has played second fiddle to UAE neighbours Dubai and Sharjah
  • Ajman can be quarter of the price of Dubai
  • GJ Properties has 25 projects under construction
  • Ajman Creek Towers will offer 1,875 apartments

Every inch of sand in Ajman will be developed in the next five years, according to the CEO of GJ Properties.

Ali Jaber told AGBI the UAE’s fifth largest emirate, which measures 42 square kilometres, is close to reaching saturation point in terms of new construction projects.

“In five years Ajman will not have a single square footage of sand left,” he said.

The Ajman Real Estate Investment Exhibition, held across three days last month, saw 75 deals concluded, worth AED44.2 million ($12.04 million).

The emirate’s Department of Lands and Real Estate Regulation revealed that 814 transactions were registered in February this year worth AED1.4 billion – up 34 percent compared to January.

“Ajman has experienced strong growth over the last few years, fuelled by investment into new infrastructure projects, and the attraction of new talent to the market,” Jaber said.

Ajman’s Department of Economic Development announced in December that the number of new licenses issued in 2022 reached 5,299, up 24 percent year-on-year.

One of the seven emirates of the UAE, Ajman – which has a population of 480,000 and doesn’t benefit from huge stocks of oil and gas – has traditionally played second fiddle to its wealthier neighbours Dubai and Sharjah.

But it is repositioning itself as a more affordable alternative for those who can no longer pay to live 40km away in Dubai.

GJ Properties, which holds between 70-80 percent of the remaining plots for development, has delivered 15 projects in Ajman and the Northern Emirates over the last 14 years, with a further 25 projects under construction.

“The emirate is small, that’s why we don’t have all the attention,” said Jaber. “But the market is there, the demand is there, the affordability is there.”

The company has just launched its Ajman Creek Towers project, a five tower development made up of 1,875 apartments, ranging from one and two-bed properties.

Jaber said prices in some instances can be a quarter of the price per square foot on offer in Dubai, while service charges can be up to a fifth.

He claimed return on investment can reach 8 percent.

“We’re always going to use Dubai as the benchmark. We’re always going to be using Dubai city as a standard,” Jaber said.

“What Ajman offers is way more space and a cheaper square footage per price.”

Last December, Ajman ruler Sheikh Humaid bin Rashid Al Nuaimi approved the emirate’s budget for 2023.

The AED2.92 billion in spending plans marked a 21 percent year-on-year increase, and the largest in the emirate’s history.