The Dubai Land Department (DLD) has auctioned 25 freehold properties this month. At least 80 properties will be auctioned this year, confirmed Humaid Omran Al Shamsi, Section Head, Auctions Section, DLD.
Among the list of auctioned properties are apartments in the Greens, Jumeirah Beach Residence, Downtown Dubai and Dubai Marina.
The department held two auctions with seven freehold properties last month. Among these, five were sold with bidders paying 8 to 20 percent higher than the reserve price.
Back in 2011, the department had auctioned only 35 freehold and non-freehold properties.
According to Shamsi, in majority of the cases, details of the property such as rented or vacant, the rent period, and the person who is supposed to hando ver the keys, etc., are not provided, and they are valued at five percent below market price.
Only when the property remains unsold, it is re-evaluated and details passed on to the court. Thereafter, the court and the bank decide on when to re-auction the property. However, if the court mentions that the department has the authority to auction the property at a new price, then the department will continue and re-list it for next auction, Shamsi said.