Great expectations

Though he acknowledges the price of property is not as high as neighbouring emirates, Dabbas suggests local real estate has become increasingly dear, "I don't think prices in Ajman are very low anymore. We're talking almost US$270 per sq ft for a residential, for offices we're talking about US$320."

Infrastructure

Perhaps conversely, Mohammed Al Zarah, Vice President of Great Properties, offers an example supporting the notion that Ajman is still a cost-effective investment.

"Earlier this summer we launched Al Helio Downtown in Ajman for sale. We were selling for as little as US$23 per sq ft as a starting price, compared to US$95 per sq ft in comparable developments in Dubai, particularly one of our projects in Dubailand," he claims.

In any case, Dabbas believes the cost is not the sole attraction of Ajman and suggests the largely undisturbed landscape is more appealing.

"Ajman has one of the best beaches in the UAE. It's still unspoiled and we're trying to manage the developments that will be constructed along the coastline."

The Ajman government is playing and active role and has, according to Al Zarah, allocated US$380m for the emirate's development.

"This figure includes US$136m allocated by the emirate for infrastructure, as well as US$217m that was allocated for the recently launched sewage system, which is one of the most important infrastructure projects in the emirate," he explains.

According to Al Zarah, the emirate's real estate development market is currently ranked the third largest in the UAE, after Dubai and Abu Dhabi.

"A recent report revealed that there are six mega projects under construction in Ajman, with a total value of US$11.1bn, which accounts for over 10% of the current projects being developed throughout the country," he says.

Unfortunately, power shortages in the Northern Emirates have been widely publicized and earlier this year forced a number of projects to be put on hold, including the US$8.6m Al Salam City. The project was due to be built in Umm Al Quwain but, according to developer Tameer, shortages of water and electricity meant work could not go ahead.

Power plant

"I don't deny there is a power shortage in Ajman, but that doesn't mean the government is not doing anything about it," says Dabbas.

In fact, the government has recently signed an MoU with a Malaysian company in order to establish the first coal power plant in the UAE.

"To further support and ensure adequate infrastructure to compete with the tremendous residential projects being undertaken in the emirate, a new coal-driven power plant is to be completed within three years," says Al Zarah, declaring the project will cost in excess of US$2bn.

"Things are moving, and this I can confirm because I am involved on some level. This is the first and others fill follow," adds Dabbas.

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