ARRA Imposes Dhs 100,000 - Penalty for Non-Registered Developers

ARRA has been established by the government of Ajman in order to sort out and categorize the property sector in this emirate. It is somewhat similar to Real Estate Regulatory Authority (RERA) that handles and controls Dubai property sector just like ARRA will now control the Ajman real estate sector. To begin with, the organization has started the registration of all real estate developers. Recently, ARRA has started imposing penalty of Dhs 100,000 for non-registered developers in Ajman. According to Ajman Real Estate regulatory Agency, the developers who have failed to meet the deadline of 1st May are non-registered developers and they have been fined for that.

May 1st was the first deadline which was set by ARRA last month. The Director General of ARRA, Omar Al Barguthi said, “We have earlier stated this information in news reports and ads in both English and Arabic languages made public in various news papers that developers not registered with ARRA are required to immediately embark on the registration process before May 1st deadline ends. Earlier statements have also warned that necessary measures will be taken against violators.” He further added that they will surely consider the cases those who were prevented due to some genuine reasons to meet the 1st May deadline and they might be exempted from demurrage.

The ads for this has been released in some of the major newspapers stating that May 1st is the closing date for receiving applications for registration of property developers with this government organization of RERA.

Ajman to Announce Sales Price Index for Freehold Areas

Ajman is about to launch sales price index by this year end for certain freehold areas in the emirate. This planning of the emirate has been reported in Emirates Business and it will be done by the year end followed by a rent index later. A rent index will also be launched, but will be done at a later stage. The Director-General of Ajman Real Estate Regulatory Agency Omar Al Barguthi told to a newspaper “We are working on launching a sales price index for the emirate's freehold area by end of 2009. We do have a plan to launch rent index, but it will be done later”.

The first regulatory body in the UAE to announce the rent index was Dubai Real Estate Regulatory Authority (RERA). It was announced in the month of January. It was asked the agency that how the prices for specific areas could be determined. Al Barguthi said: "The prices of the properties will be determined on the basis of supply and demand. We will be monitoring the freehold areas to set the prices." ARRA has been established in January this year and with the help of this the emirates real estate sector will be monitored.

Matt Green, the Associate Director of CB Richard Ellis Middle East, said that there is a positive sign in creation of a price index in Ajman. ARRA released an index status reflecting the true market status so that landlords, investors and the end-user will be able to make well-informed decisions. The agency last week said that those developers who failed to meet the registration deadline will be fined Dh 100, 000 per month. According to Matt Green the transparency has been increased thereby, the flow of information in public is increased. The associate director further said: “We would expect this trend to continue with other emirates following suit as the year progresses and more regulations being passed that will further the evolution of the local property market.”