From good to great

It may be the smallest Emirate but Ajman packs a punch well above its weight. Elspeth Hoare examines its growth and looks at what's next for Dubai's humbler neighbour.

According to an analyst at the Abu Dhabi National Bank "investing in property in Dubai and Abu Dhabi today doesn't really make so much sense", but investing in Ajman, the UAE's cheapest freehold market and "best property investment opportunity" does.

Roll on Ajman's time in the limelight and how it has brought itself to the attention of major players in the Arab property market by transforming itself into an Emirate in its own right.

Ajman has a population of 370,000 with a landmass of 260 sq km and a 16 km coastline, making it the smallest of the seven United Arab Emirates.

It is 35 km from Dubai enabling it to cash in on its geographical position, being a relatively untouched peaceful haven away from the frenetic city of Dubai. Its tagline, "live Ajman, work Dubai" although simple is appealing and already proving effective.

One only needs to look at the figures; two years ago Ajman had an average price per sq ft of US$81, now it's US$141. And in the last three months alone, the land price in Emirates City where 96 tall towers are planned has gone from US$20 per sq ft to US$28 per sq ft.

Dubai's average price per sq ft is at least three times that of Ajman's. For a one bedroom apartment you're looking at spending around US$109,000. In Dubai or Abu Dhabi that might buy you a parking space, but little else!

The new development taking place is mainly concentrated around the planned Emirates City, which forms what will be New Ajman and the centre-piece of Ajman's reputation as a property investment hub. Outside of this there are a number of costal developments.

Currently 95% of Ajman's population lives in Ajman City.

Ajman has always been a little more maverick in attracting investors starting in 2004 when it became the first emirate to offer 100% freehold property regardless of nationality and residency visas with ownership, giving it the edge over its neighbour Sharjah as a commuter destination.

A new property law empowering the Department of Land, (effectively centralising the industry under one authority) passed in June this year should also buoy the confidence of investors.

It sees the introduction of Escrow accounts, Realtor's licenses, and bank guarantees that must be deposited for those who wish to invest in Ajman. It also forces developers to use money allocated from sales to complete-something Ajman has taken on board from Dubai's experience.

Once known as little more than a suburb for Dubai's labour camps, Ajman is clearly crafting its own niche market aiming primarily at low-middle income streams. Imran Khan CEO of Al Barakah, the developers behind Ajman's tallest planned tower in Marmooka City said: "Ajman is emerging as in important real estate destination particularly because property prices of comparable quality in the emirate are only half their rates in Dubai and with convenient road access between the two emirates more property buyers from lower income streams are closely studying good quality and affordable housing solutions in Ajman".

This was echoed by Dirk Sassen of ICT, a German investment fund developing three towers in Ajman. "Once Burj Dubai is completed, the inner circle of 25km around it will be one of the dearest residential areas in the world".

"The middle class have no chance inside this circle, even in International City. Ajman is only 30km from Burj Dubai and will be a natural place to live".

But it's not just a destination for average Joes. There are a number of high-end prestigious developments currently underway in Ajman, such as Escape, an equestrian residential compound named after the Crown Prince's champion Arabian stallion Escape Ibn Navarrone which caters towards keen equestrian types, echoing the ruling family's love of horses.

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