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Tue 30 Dec 2008 01:10 PM

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70% of $545mn Ajman Uptown project sold

Developer Sweet Homes says success is down to vibrant Ajman real estate market.

Sweet Homes, a UAE-based developer, has announced that it has sold out 70 per cent of its three billion dirham ($545 million) Ajman Uptown project, despite a 40 per cent hike in property prices in Ajman in 2008.

The announcement follows a GCC-wide roadshow organised by the company and is in line with the developer's two billion dirham investment plan for 2008.

Company chiefs said the strong sales reflected the vibrancy of Ajman’s real estate industry and the appeal of Ajman Uptown, which comprises of seven commercial and residential towers, a hotel and hotel apartments complex, and villas and townhouses.

Reports also indicate that investments into Ajman’s property sector have crossed the 400 billion dirham mark this year.

While other parts of the UAE suffers, Ajman iis experiencing a property boom due to its investor-friendly property laws and reasonable project rates, with the emirate having attracted significant foreign direct investment (FDI), which has exceeded the rest of the other emirates by 300 per cent.

“As the third largest property market in the UAE, Ajman is strategically positioned to attract more foreign investments into the real estate sector, with over 33 per cent of development projects in the area owned by expatriates, as compared to 11 percent in other emirates," said Fahad Sattar Dero, CEO, Sweet Homes Group.

With offices in the UAE, Oman and Qatar, Sweet Homes continues to undertake regional awareness campaigns and participate in high profile promotional activities, such as its ongoing participation as a major sponsor for the Doha Shopping Festival.

Scheduled for completion by 2010, Ajman Uptown will also feature a school, a healthcare centre, a fire fighting station, several mosques, a health and recreation club, a swimming pool, markets, shopping mall, hotel & hotel apartments, and convenient and spacious parks.

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Mpower 11 years ago

Mr. Fahad Sattar Dero, you must be kidding when you say 2010, Ajman Uptown will be ready, probably you plan to get the Lego model up and running by that time. Can we have some realistic approach by the developers please, transparency and communication is the order of the day, please don't lead the investor on, due to your own greed of fueling this bubble.

Skeptical 11 years ago

I agree with Mpower.....I am an owner at Ajman Uptown. I've been told by Ajman Uptown executives that the "goal" is 2010 but late 2011 is more realistic. I drove by the site 1 month ago and saw maybe 5 people on site. If the developer was serious about a 2010 completion the site would be much more active. In the mean time we continue to make our regular payments every couple of months as per the schedule, and because there is no Escrow law in Ajman, the money is going into someone's pockets.....hmmm?

Dan 11 years ago

The World sold 70% and now Sweet Homes sold 70%. Is there no end to this fiction???

John Smith 11 years ago

Note to author - Would be good if you did a follow up interview, and asked why no construction has begun. Perhaps - also ask why they were advertising a construction linked payment plan, then left it out of contracts, and now stopped talking about it altogether. 3.5M sq feet of space, and they insist that they will deliver in mid 2010, so that they can continue to collect the payments. Probably in the next few months, they can claim 90%...the day won't be too far when they say the project was completed - delivered... all without starting, and I would not be surprised to see that in print either. There are resales are going for as low as 30% below original price...so the 40% price hike - on paper, applies to people who stumble into the con. Pardon my cynicism - I am one of the owners who fell for the con.

ossama 11 years ago

again another 70%, what is going on with 70% record ? is it lucky number or fiction.

Al Ameen 11 years ago

Iam an Owner for one of the properties in Ajman Uptown and dont think the project will be completed by end 2012. The pace at how the construction is going is very very slow. I guess we all should meet up and take this up with the concerned authority at Sweet Homes and get an outcome on this before its too late.

Raj 11 years ago

Haha! I am sure if developer is asked to transparently show his records it would sing a different tune. Dont know why but dont feel like trusting these statistics anymore.

Sean 11 years ago

This is unbelievable! Sweet Homes cannot complete their projects of Al Khor tower, which were suppose to be delivered in January 2007. There current excuse is that there is no electricity??? As an owner of a property who has paid in full I am extremely disappointed in the manner they have conducted business. Now they are talking about June 2009. I wonder what would happen to the flats which sit vacant in scorching heat? Let alone the loss on income to many investors.

ossama14 11 years ago

in responding to Sean , i am one of the owner and till date i paid every thing and unfortunately i am always receiving an excuse , i reached a point that ... do not trust any developers in UAE, for this reason the market is collapsed and the game is over, only losing money and time due to our mistake becuase we believed those people.

GS 11 years ago

I think it must be made absolutely compulsory for developers to sell property only with construction linked payment plans whereby no more than 15% of Purchase Price should be payable prior to construction. Further payments should be against specific milestones in construction such as Ground Floor completion and so on. In this manner, developers without proper working capital arrangements will dread to adventure out and cause agony to investors who wait indefinitely whereby in reality many of these developers are using money received from people to actually go and speculate in the market with investor money instead of building the property against which the money was paid to them.