Middle-income sector drawn towards Ajman for quality inexpensive housing

The population boom in the country has triggered rapid industrialization and urbanization, which is likely to grow by another 7 percent towards 2009.

According to a release by the Ministry of Economy in UAE, the population of the country is likely to hit 5.06million mark by 2009, as against 4.48million in 2007. The per capita income of residents has more than doubled from Dh.76,000 in 2006 to Dh.162,000 in 2007, indicating a steep increase in personal incomes despite inflation.

After thorough evaluation, the gowealthy.com research team predicts a shortage of mid-level housing sector that would lead to demand for affordable residential properties and amenities.

With the prices and rents of properties soaring in Dubai and Abu Dhabi, Ajman with its moderately-priced offerings is drawing major investor interest. The recently issued Realty Law legalizes freehold ownership in the emirate and has increased buyer confidence in the market.

Property prices in Ajman are now in the range of Dh.700 to Dh.750 per square foot when compared to Dh.2500 to Dh.3000 per square foot in Dubai.

Also, unlike in Abu Dhabi or Dubai, Ajman is home to several residential developments targeting middle-income sector. This trend is hoped to continue with increase in difference between demand and supply of affordable housing elsewhere in the UAE.

Ajman is therefore growing in popularity among non-GCC expatriates who are on the lookout for quality inexpensive accommodation. A huge demand for smaller single and double bedroom apartments is expected in the immediate future with more families shifting their base to Ajman from neighbouring emirate Dubai.

This will increase primary and secondary sales of properties after completion of road projects towards 2011. The prices and rents are surely bound to increase with more families preferring to stay in Ajman than their neighbouring emirates.

Posted on 1/10/2008

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