Ajman offers a compelling opportunity for investors seeking to purchase commercial real estate. With attractive yields, affordable property prices, and streamlined regulations, the buying process is both accessible and rewarding. Here’s what you need to know:
Initial Visit and Agreement
- Investors typically start by visiting the property and negotiating terms with the seller. Once both parties agree, a Sales and Purchase Agreement (SPA) is signed.
Property Transfer Process
- The buyer and seller proceed to complete the property transfer at the Ajman Real Estate Regulatory Agency (ARRA) or the Ajman Land Department.
- Required documents include:
- Copies of passports
- Original Title Deed
- Signed SPA
- The buyer pays transfer fees to finalize the ownership transfer.
Payment Terms
- Payments are usually made directly to the seller or through an escrow account, depending on the agreement. Unlike other countries, UAE property transactions do not typically involve notaries unless specific legal circumstances arise.
Ownership for Companies
- If the property is purchased under a company name, the Title Deed is issued to the company.
- Ensure the company complies with UAE property ownership laws. Free zone companies often qualify, but mainland companies may require additional permissions.
Banking for Transactions
- Opening a UAE bank account is not mandatory, as international transfers or certified checks are accepted. However, having a UAE account simplifies rent collection and local transactions.
Rental Income and Banking
- Rental Income Deposits:
- Rental payments can be deposited into:
- A UAE bank account in the property owner’s name, or
- A foreign account, such as in the Netherlands, based on the lease agreement.
- For practical management, a UAE account is recommended.
- Bank Account Requirements:
- A residency visa is often required to open a UAE personal bank account.
- Non-resident accounts are available but come with higher minimum balances and limited services.
Advantages of Buying Commercial Real Estate in Ajman
- High Rental Yields:
- Investors can expect yields of 5% to 9%, significantly higher than in many other global markets.
- Affordable Prices:
- Ajman offers competitive pricing per square foot compared to nearby emirates and other international cities.
- Regulatory Changes:
- Recent amendments by the Ajman government now allow foreign investors to own property, increasing accessibility.
- Financing Options:
- Banks such as Emirates NBD, HSBC, and Mashreq offer mortgages to expats and foreign nationals with competitive rates and high loan-to-value (LTV) ratios.
Key Ownership Models in Ajman
Musataha Agreements:
- Long-term investment partnerships, typically for 50 years (renewable). Owners can construct, alter, or demolish buildings on the land.
Long-Term Lease or Commonhold:
- Initially granted for up to 25 years, with options for extension. Ideal for businesses seeking operational flexibility.
Investor Visas and Benefits
- Properties valued over AED 750,000 may qualify owners for a property investor visa, simplifying bank account setup and providing residency benefits.
Is Ajman a Good Investment Destination?
Ajman is an emerging hotspot for commercial real estate investment due to:
- Strategic Location: Proximity to Dubai and Sharjah.
- Growing Demand: Increasing interest from local and international businesses.
- Regulatory Support: Policies that encourage foreign investment.
Whether you aim to start a business, earn rental income, or build long-term equity, Ajman provides a thriving environment for commercial real estate investment. Contact us for more information. If you want to diversify your real estate portfolio, Ajman is the best choice.