Dubai: Ajman is feeding off consumer aversion to Dubai's high property prices, according to officials behind a new residential tower in the once sleepy northern emirate.
High property prices and spiralling rents in Dubai are forcing large numbers of investors to look to Ajman, where prices can be more than a third less, said Avais Nagaria, CEO of Ajman-based Palm Real Estate Investment Group.
The trend has encouraged many private developers to launch Ajman residential properties aimed at low- to middle-income end-users, especially in the Emirates City development on Emirates Road, a short journey from Dubai International Airport.
"Construction in Ajman is moving very rapidly, especially after construction of Emirates Road, which opened up Ajman to people working in Dubai," said Nagaria.
Yesterday's launch of the Dh110 million Orbit Tower by Palm Real Estate Investment Group follows the announcement of ETA Star's four-tower Gold Crest Dreams residential complex earlier this year.
Meanwhile, property developer Tameer Holdings is building its first Ajman project, the three million square feet residential and commercial Al Ameera Village on Emirates Road.
Contracts for construction of the 30-storey Orbit Tower in Emirates City will go to tender at the end of the month and project completion is due in August 2009. Architects' firm Adnan Saffarini has designed the tower and is also acting as consultant and supervisor.
"Our aim is to provide luxurious, spacious and secure living to the middle class earning between Dh5,000 and Dh6,000 a month," Nagaria said.
The tower will bring 400 one- and two-bedroom units onto the market priced from Dh245,000 to Dh400,000. Facilities include a health club with gym, a prayer area, children's playground, swimming pool, sauna, and jacuzzi, with separate areas for men and women.
Nagaria said pre-launch sales have been strong, with up to 30 per cent of units snapped up by investors.