Dubai Property Auctions Are Here!

The Dubai freehold property market is always following a trend.  From luxury properties, to affordable developments and even one of a kind projects, there is always something new and exciting to keep investors buying and to maintain the property boom.  The latest trend in Dubai? Auctions.  While auctions are certainly not a common event in Dubai, this is just the latest idea from property developers to sell properties at what they see is the true market value and give owners another route to sell Dubai property.

The first major property auction took place on the 12th June at the Burj Al Arab, and was a huge success.  At total of Dhs 250 million was made in the space of just two hours, owing to the calibre of investors that attended on an invite only basis.  While this auction was restricted, there are plans for more auctions over the year to ensure that properties are sold for what people are willing to pay for them.  While this is a significant risk for property sellers, as properties may earn more or less than expected, it has so far proven to be a popular way of selling highly desirable real estate to investors that are really interested.

The next auctions are not set to be open to everyone; there will be several criteria that potential investors must meet.  As the properties going on sale are expected to reach into the millions of Dirhams, potential investors have to be able to meet the financial criteria to put a deposit on a property they would like to buy.  A deposit of Dhs 100,000 to attend the auction, which is fully refundable if no properties are purchased.  This may seem like a strict measure, but Auction organisers have chosen to be restrictive to attract serious buyers, and to keep timewasters away who make out they want to buy or sell Dubai real estate.

While many people are now concerned that auctions will push up the price of properties even more, auction organisers are confident that this is the best way to sell properties and get their actual values.  Fortunately for buyers, the auction process is currently applied to niche, high demand properties, which will probably get their actual market values most effectively under auction.  Other projects are yet to use this method of sale, so this may not be a concern for the price levels on the Dubai real estate market.

Looking to sell Dubai property? We can help! Contact us on the link below.
 

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