None of the 900 tower developments in Ajman that were launched in 2007 & 2008 by Ajman Government in partnership with hundreds of different developers have been completed. After the financial crisis at the end of 2008 and early 2009, developers could not get bank funding and customers stopped making payments and these buildings have not been built. Most of the funds paid to developers have been spent on plot payments to Ajman Government and other admin expenses. About 10 buildings are nearing completion in Emirates City and may be completed in the future.
The developers (and in many cases, if the developer is no longer around, the master developer) have offered alternative identical size apartments to customers but no refunds have been offered or are ever likely to be offered. There is a possibility that Ajman Government may pay some compensation in the future but there is no confirmation of this.
Customers who had made part payments of between 10% and 50% were offered alternative apartments in a few buildings that were nearing completion in Emirates City, and in the old city of Ajman, providing they paid the remaining part of their payment. However, as property prices had fallen by more than 50% following the worldwide financial crisis, the amount outstanding was always more than the current property value, even for customers who had paid 50%. Thus most customers did not take up this option. Instead, those that were interested in getting an apartment have purchased an equivalent ready apartment in Dubai direct from Openshore, independent of the developer with the remaining funds. Openshore offered such customers a subsided price and payment plan on ready Dubai property, which in most cases was better than the property they would have got in Ajman.
The only recourse for customers for other customers was to go to ARRA as action via courts is likely to be expensive and not produce the desired refund outcome. However, ARRA together with Ajman Government are now taking the view that a replacement apartment for the remaining funds is a fair offer and are actively supporting R Holding and their subsidiaries including ‘Charles Estates’ in this offer and thus refunds are not available through any route at present.
Replacement Solutions from Ajman Government