Dubai Land Dept’s first private property auction

Apartment in Dorra Bay, Dubai Marina purchased for Dh1.6 million; Base prices too high for others on offer

Only one out of the nine properties that went under the hammer at the first private auction held by Dubai Land Department (DLD) was sold, people present at the auction told Emirates 24|7.

The only property sold was a residential apartment in Dorra Bay in Dubai Marina. It was purchased at the listed price of Dh1.6 million.

“There was only one bidder for the property,” a property agent, who wished not be named, 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 up for auction were priced at Dh3 million.

Four other properties that went under the hammer but remained unsold were office units and two land plots.

The office units are located in Ontario Tower, Business Bay. Two office units had a reserve price of Dh1 million each, while the other two had a base price of Dh1.5 million each.

The land plots were on Palm Jumeirah and listed for Dh13.187 million each.

 “Since it was a full house, we though all the properties would be sold out. But all were there to see if people would by at the listed price. Unfortunately, there were none,” the agent added.

Last week, Emirates 24|7 reported that the DLD will no longer be holding auctions for foreclosed properties, but will sell properties for developers and unit owners through private auctions.

In the past two years, Dubai has auctioned over 80 foreclosed properties.  In 2011, 35 properties were auctioned, while 2012 saw over 45 properties going under the hammer. Most of the properties fetched on average between 15 and 40 per cent over their base prices.

In August 2012, Asteco Property Management, a local real estate consultancy, had said it will be reintroducing 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, a number of companies entered into the auction business. Though some did hold auctions for a few properties, none were ever sold. Following the lack of interest by local investors, some closed shop, while others never dared to venture out again.

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