Sunday, February 10, 2013

Dorra Bay unit is first property to be sold under private auction

One out of nine properties that went under the hammer during the first private auction held by Dubai Land Department (DLD) has been sold for Dh.1.6mn.

An apartment in Dorra Bay, Dubai Marina, purchased for Dh.1.6mn is the only property to have been sold, with only one bidder for the property, a property agent said.

Although it was a full house in terms of attendance, people did not bid, as the base prices were quite high. The other two residential units displayed for auction were priced at Dh.3million. Four other properties put up for auction were office units, and two others were land plots.

The office units were those located in Business Bay and Ontario Tower. Two office units were priced at Dh.1mn each, while the other two were with a base price of Dh.1.5mn each. The land plots were those located on Palm Jumeirah, listed for Dh.13.187 mn each.

Last week, the Dubai Land Department said that it will no longer hold auctions for foreclosed properties, but, will continue selling them for developers and unit owners through private auctions.

Dubai had auctioned over 80 foreclosed properties over the past two years. In 2011, about 35 properties were auctioned, while in 2012, more than 45 properties were being auctioned. Majority of the properties fetched an average of 15 to 40 percent over their base prices.

A local real estate consultancy, Asteco Property Management, in August 2012, said that it will re-introduce the concept of online property auction in the UAE, in partnership with LFC International Real Estate Brokerage, an international real estate auction-marketing company.

In 2008, several companies entered into the auction business. Although, some of them held auctions for a few properties, none were sold. Due to lack of interest by local investors, some closed shops, while others never dared to venture out again.

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