Unlocking Ajman Real Estate: A Complete Guide To Foreign Property Ownership

Far beyond its boundaries, Ajman captivates visitors with its towering buildings, vast desert vistas, and cosmopolitan vibe. This vibrant city has become a major international hub, attracting travellers and foreign property investors. A property in Ajman is a tempting prospect as it can yield large profits and connect one to a booming economy. But for many, figuring out the complexities of buying real estate abroad can be intimidating. This guide offers essential information on foreign property ownership and the legalities before purchasing real estate in Ajman.

Overview of Foreign Property Ownership – Ajman Real Estate

Like other UAE regions, Ajman is experiencing rapid growth in the real estate sector. This surge is primarily driven by new residential and commercial developments, specifically in foreign property investors’ interest. The emirate’s focus on infrastructure and urban planning, along with its appealing amenities, enhances its attraction. Value-conscious buyers and investors have thus paid greater attention to Ajman, raising demand in the market. Is it now possible for foreigners to purchase real estate in Ajman? Let’s look at the advantages of foreigners buying real estate in Ajman. 

Advantages of Foreigners Owning Property in Ajman

Particularly for foreign property investors, Ajman has become a thriving and appealing location for real estate investment. The advantages of foreigners owning property in Ajman include:

• Affordability: Property prices in Ajman are lower than in Dubai, offering accessible overseas property investment opportunities to foreign investors.
• High Rental Yields: Ajman offers attractive rental yields that benefit foreign property investors due to its proximity to Dubai and affordable housing options.
• Diverse Property Options: Ajman provides various property types, including waterfront communities, spacious villas, and commercial spaces, thus catering to various investment preferences.
• Favourable Location: Ajman’s strategic location near Dubai allows easy access to international airports, business hubs, and tourist attractions. It enhances its appeal for residential and commercial property investments.

Important Factors to Consider Before Investing in Ajman

Before investing in Ajman, it is crucial to consider several important factors to ensure a sound and profitable investment. Let’s have a look at some important factors to consider before investing:

• • Ajman Laws on Foreign Property Ownership

Ajman has established clear property ownership regulations for foreign property ownership, making it an attractive destination for international investors. Since 2004, the Ajman government has allowed foreigners to purchase and own real estate in designated freehold areas. These laws align with broader trends in the UAE and are designed to attract global investors to stimulate the local real estate market.

• • Legal Criteria for Foreign Property Investors in Ajman

Investors must comply with and understand the legal framework governing foreign property ownership in Ajman. These include freehold areas, the Sales and Purchase Agreement (SPA) process, and the necessary documentation for property registration with the Ajman Department of Land and Real Estate Regulation (AjmanRE).

Foreign property investors should consider the following additional factors when investing in Ajman:

• • • Eligibility: 

Foreign nationals can purchase and own property in Ajman, but only in designated freehold areas. These areas allow foreigners full ownership rights, including the ability to sell, lease, or pass on the property to heirs.

• • • Sales and Purchase Agreement (SPA): 

The seller and foreign investors must enforce a proper SPA. This document outlines the terms and conditions of the sale. It includes both parties’ prices, payment schedules, and other obligations.

• • • Property Registration:

After signing the SPA, you must register the property with the AjmanRE. This step is crucial as it legally recognises the property’s ownership.

• • • Documentation Requirements: 

Foreign investors must provide documents to complete the property purchase. These documents typically include:

• • A valid passport
  • Copies of visa
  • Personal identification (such as a national ID or equivalent)
  • Address proof
  • NOC certificate from the developer, if applicable

    • Payment of Fees: 

Besides the purchase price of the property, investors must pay various fees, including:

• • Registration fees (around 2% of the property value)
  • Agent commissions (if a real estate agent is involved, typically around 2% of the property value)
  • Administrative charges and any other applicable fees, such as NOC, maintenance, and mortgage-related fees (if financing is involved).

    • No Criminal Record: 

Foreign property investors should generally have a clean legal record, as a criminal history may complicate the transaction or lead to disqualification. However, this may not always be explicitly stated.

• • • Age Requirement: 

For expat investors, the age limit to apply for foreign property ownership in Ajman is 18 years or older. They must also enter into a binding contract to purchase property in Ajman.

• • Freehold Property Areas in Ajman

Non-UAE nationals are permitted to acquire freehold real estate within specific freehold zones. Certain locations have been reserved for overseas property investment. Some of the freehold property areas in Ajman include the following:  

• • • Corniche Residence
    • Emirates City
    • Al Nuaimiya Towers
    • Ajman One
    • Al Rashidiya Towers
    • Ajman Uptown
    • Ajman Pearl Towers
    • Horizon Towers

Expense of Acquiring a Freehold Property in Ajman

In Ajman, buying a home often involves additional costs and fees. An overview of typical costs to expect is mentioned below: 

• • Purchase Price

The main factor to consider is the buying price of the land. This amount varies according to the property type, location, size, and amenities. 

• • Registration Charges

As the Ajman Land Department mandated, foreign property investors in Ajman must pay registration charges. Additionally, government rules may change these expenses, sometimes stated as a percentage of the property’s purchase price. Specifically, the AjmanRE receives payment for property registration equal to about 2% of the property’s worth. 

• • Agent Fees

If you hire a real estate agent to help with the acquisition, the agent fee is fixed at about 2% of the property value.

• • NOC Charges

The NOC varies according to the developer, from AED 500 to AED 5,000. This cost guarantees no unpaid debts or legal concerns related to the property, facilitating a seamless ownership transfer. 

• • Administrative Charges

Administrative charges for foreign property ownership in Ajman cover fees for handling legal and bureaucratic tasks. These charges include services provided by government bodies, real estate agencies, and other entities involved in the property transaction.

• • Maintenance Charges

If the property is in a residential complex or gated community, you may need to pay maintenance or service charges for common areas and facilities. 

• • Mortgage Charges (if applicable)

If you took out a loan or mortgage for the property, you may be liable for processing, loan arrangement, and appraisal fees.

• • Additional Costs

Additional costs can include courier services fees, document duplication fees, or any other incidental expenses incurred during the transaction process.

Benefits of Foreign Property Ownership in Ajman

Ajman offers a unique combination of affordability, strategic location, property options, and high rental yields that encourage overseas property investment. These factors make Ajman a compelling choice for those looking to invest in real estate within the UAE.

• • Affordability

Affordability is one of the most important factors to consider when purchasing real estate in Ajman. A person’s monthly housing expenses cannot exceed 25% of their income. You should also include upfront expenses in your budget. This might account for about 9% of the total cost of the house. Due to its lower average property costs than emirates like Dubai, Ajman is more affordable for foreign property investors. 

• • High Rental Yields

If you’re considering renting a house in Ajman, you should focus on the potential income gains. You can then assess whether the projected rental revenue will cover your mortgage, rent, and maintenance expenses. Investors typically look for a gross yield between 5% and 9%. 

• • Diverse Property Options

Property type is one of the most important factors to consider before investing in Ajman. People who want to invest in an apartment building or purchase a luxurious home in Ajman should investigate in detail.

• • • Freehold/Ownership: Expatriates can obtain permanent and absolute property rights for up to 99 years, with full freedom to sell or transfer the property as they wish.
    • Usufruct: Under this legal arrangement, the property owner is restricted from making any alterations or demolishing the property during a lease term of 50 to 99 years.
    • Musataha: Musataha is a unique investment partnership between the public and private sectors. It allows the property owner to own the residential unit for a renewable period of 50 years, during which they have the right to construct, modify, or demolish the property, unlike in Usufruct.
    • Long-term lease/Commonhold property: These leases are initially granted for up to 25 years, but both parties can extend them indefinitely.

  • Desired Location

Location is a crucial factor before investing in Ajman real estate. Those looking to buy an apartment building or luxury home in Ajman should research the top investment areas.

Some of the city’s most desirable neighborhoods have specific amenities that offer prospects for high-quality living, are:

• • • Ajman Downtown 
    • Al Yasmeen
    • Ajman Corniche 

Additional Factors for Foreign Property Investors to Consider

Regarding foreign property investment in Ajman, various additional factors must be considered. These include –

• • Taxation on Property Ownership in Ajman

Ajman is well known for having some of the world’s most generous tax laws regarding residential properties. The tax rate varies according to whether you plan to use the resources of a real estate developer to purchase real estate. Furthermore, residential real estate is exempt from taxes. It also depends on whether you require mortgage financing. 

• • Inheritance Laws and Estate Planning

Foreign property investors in Ajman should address inheritance laws and estate planning to ensure their assets are distributed according to their wishes. While UAE law defaults to Islamic Sharia principles, non-Muslim investors can draft and register a will to specify beneficiaries and asset distribution, bypassing Sharia rules. Register the will with the DIFC Wills Service Centre or ADJD and consult legal advisors to protect heirs and avoid disputes.

• • Long-Term Residency Options

Ajman offers long-term residency options particularly attractive to foreign property investors seeking a permanent presence in the UAE. One key pathway is through property investment. One can purchase real estate above a certain value and qualify for a long-term visa, typically five to ten years. These visas offer investors and their families stable residency, allowing them to live, work, and study, with the option to renew if criteria are met.

Final Words

Ajman’s real estate market is expanding due to government initiatives, modern infrastructure, and sophisticated communities. Its affordability makes it attractive to both local and foreign property investors. For property ownership regulations, foreign nationals should get approval from the authorities, find a suitable property, negotiate terms, prepare and sign a contract, and make a down payment. They should also ensure they have the documentation for legal compliance when purchasing real estate in Ajman.

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