The Dubai property market is experiencing a strong interest from buyers in good quality, well positioned and well-designed properties. According to Property Wire the average villa sales growth are at 0.7 and the development market is also showing signs that it is coming out of hibernation.
The Dubai Land Department (DLD) has started auctioning freehold properties forfeited from defaulters. In a first major auction, five properties in The Springs and Jumeirah Islands sold by November 28.
HumaidOmran Al Shamsi, Head of Auctions, DLD, told XPRESS: “We are auctioning freehold properties in Dubai. Some of these have been mortgaged to banks. The auctions are a way to clear the market. These properties come through Dubai courts for auction and the proceeds go back to the courts. They have a process in place to return it to the banks.”
Five properties that were auctioned in November, four of these were sold at a higher price than the expected base rate.
Of these was a1,800-square-footsprings villa which went for Dh1.306 million against a base price of Dh1.1 million. It was purchased by an Indian businessman VimalBansal who stated “This property is for my personal use and since I felt the price was right, I successfully bid on it.”
A more detailed example of what occurred during the auction is as follows. A 3,511-square-foot three-bedroom (Type 3E) villa in Springs 11, with a partial lake view, was sold for Dh1.82 million against a base price of Dh1.5 million. An unanticipated bid was for a property in Jumeirah Islands that was sold for Dh5.4 million against a base price of Dh3.5 million; this was a 10,637square-foot four-bedroom villa, which also has a separate study room. It went for.
The buyer of this marvellous property, Amar S. Dhir of Castles Plaza Real Estate said, “This is a good property in a good location and hence it went for such a high bid. We will be re-selling the property as soon as we get the papers,”
It is clear that buyers can start expecting more auctions in the near future.
“The properties being auctioned have been passed by the courts. This means that the docket of defaulting properties is finally starting to clear. If that is the case, it is a positive development.” LudmilaYamalova, Managing Partner, HPL Yamalova&Plewka
“On November 28, we auctioned a property at the Land Department. There are a few properties repossessed by ADCB that are being lined up with the Land Department for auction. The DLD public auction is a welcome step for all UAE banks. This will instil better confidence in the mortgage market and give rise to structured lending practices. The proceeds from the auction will be applied to offset the loan outstanding, including charges, and provisions reversed.” SundarParthasarathy, Executive Vice President, Head-Consumer Assets, Consumer Banking Group, Abu Dhabi Commercial Bank (ADCB).