Two mansions in the upscale Jumeirah Islands development are up for grabs - but only for those with deep pockets.
Nakheel, the Dubai-based master developer, will hold a private auction for the two properties on April 15 with bids starting from Dh15 million and bid increments of Dh100,000.
The winning bidder will have to pay Dh1.5 million as non-refundable deposit.
To make the transaction attractive, the developer says it will be accepting credit notes from any of its long-term projects within two months of purchase.
The five-bedroom mansions (built up area of 8,452 square feet) have been listed on propertyfinder.ae as costing between Dh12 million and Dh12.9 million.
A Nakheel spokesperson told this website that because the properties are luxury and high-end the company has gone the private auction route.
In 2008, Nakheel had used the private auction route to sell similar properties.
The highest bid at the time was Dh25.25 million with the average price per square foot reaching Dh2,660 for plot sizes, ranging between 11,500 and 16,000 square feet.
However, the Nakheel spokesperson stated that these properties on auction are not repossessed but unsold ones.
The 31 mansions, built at the centre of the Jumeirah Island community, were set for completion in early 2009.
Besides the five bedrooms, these properties also have six reception areas and a private swimming pool.
Faisal Baig, Director, PropSquare Real Estate, says: “Most of the mansions were sold during launch, but Nakheel might have been taken back some as investors may have defaulted.”
Although the prices seem to be relatively high, he believes people with “large” credit notes can use it to their advantage by bidding at the auction.
“Those who have credit notes of large sums can benefit as it will reduce the price for them.
“One thing is clear that there is a demand for villas in Dubai and Jumeirah Islands is amongst one of the best new villa developments and so buyers will gain over the time.”
Last year, Nakheel sold a six-bedroom Signature villa, located on a 13,000 sqft plot on Palm Jumeirah for Dh28 million through a private auction.
The Nakheel spokesperson added that the company had no plan to sell luxury villas on the Palm through auctions.