Ajman real estate market will benefit from availability of mortgage financing, says Sweet Homes Holdings

Ajman real estate market will benefit from availability of mortgage financing, says Sweet Homes Holdings

Government continues to take crucial steps to regulate emirate’s property sector

July 21, 2009

The Ajman real estate market will highly benefit from the availability of mortgage financing, according to Sweet Homes Holdings, a leading UAE-based developer and multi-service provider to the real estate sector. At present, all developments in the emirate are being acquired through self-financing, with the money going directly to the developers and thereby leaving uncertainties in terms of financial security. The developer added that the introduction of mortgage schemes could boost the efforts being taken by the Ajman Government, as it continues to take crucial steps to regulate emirate’s property sector through the Ajman Real Estate Regulatory Authority (ARRA).

According to banking experts, the UAE mortgage market is stabilising as loan-to-value ratios (LTVs) settle in the 70 to 85 per cent range. In line with this, several leading local banks have revealed that they are lending up to 90 per cent of the original price on selected projects in the primary market direct from developers, while financing up to 80 per cent of the market value on selected projects on the resale market. Furthermore, some banks also divulged that their interest rates currently range between 8.3 per cent and 10.6 per cent, depending on the customer's profile and the LTV. As the market becomes more end-user-driven, the introduction of mortgage financing - similar to those offered in Dubai and Abu Dhabi - in Ajman holds much potential to boost real estate sales within the emirate.

“The exemplary efforts of the Ajman Government to attract property investors has resulted in significant developments, which has put Ajman in a strategic position to overcome the challenges of the economic crisis,” said Fahad Sattar Dero, CEO, Sweet Homes Holdings. “However, we believe that providing mortgage financing for investors who are looking at venturing into Ajman will further encourage investment activities in the market. We are optimistic that combining all these factors will result in greater stability for the Ajman property sector in 2009.”

The master developer of the AED 3 billion ‘Ajman Uptown’ and the AED 1.7 billion ‘Rainbow Towers’ projects has previously revealed the completion of its registration with ARRA, as well as its agreement with Dubai Islamic Bank for the escrow accounts of both projects. The developer also reported exceptional progress in the construction of the two high profile developments, with ‘Rainbow Towers’ and Ajman Uptown Villas on track to hit their delivery deadlines by 2010.

“In the midst of this challenging period, our strategy is to match the efforts of the local government with our commitment to complete and deliver our property offerings on time and ensure that all expectations in terms of quality and convenience are met. We are proud that the construction of our projects is progressing smoothly and that both have recorded excellent sales performance, which gives us an opportunity to focus on our construction activities,” concluded Dero.