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Discuss this article (34 Comments)UAE's first property auction flops
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 26 May 2009
AUCTION PRICE: An apartment in JBR was one of the properties that failed to make its reserve price at the UAE's first public property auction.
None of the four lots in the UAE's first public property auction made their reserve price on Tuesday evening.
There were no bidders for two lots - a four bed apartment in Jumeirah Beach Residence and a seven bed villa in Arabian Ranches - resulting in the auctioneer "passing in" the properties.
A three bed villa and a five bed villa in Arabian Ranches went for AED2.3m and AED2.8m but they will only be sold to the bidders if the seller agrees to lower his valuation because both bids were below the reserve price.
Related: Property market fails its big test
More than 100 people filled the Al Yasat Grand Ballroom in the Al Murooj Rotana Hotel for the Madania Real Estate auction, many of them real estate agents keen to gauge demand in the market.
Successful bidders were required to put down a 20 percent deposit on the property and pay a two percent Land Department fee.
“The auctioneering method of sale is unique in that it facilitates sales between a buyer and vendor in the most transparent manner and puts the property before the price," Madania CEO Raymond Kuceli said earlier in the week.
Property prices have collapsed in Dubai as speculators fled last year in the wake of the global crisis.
Real estate consultant Colliers International said house prices slid 41 percent in the first quarter of 2009.
Madania is a subsidiary of Al Tamimi Investments.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
It was your decision.
Posted by Tehsin Asghar, Dubai, UAE on Thursday 28 May 2009 at 10:07 UAE time
TO Sayeda, no one is going to bail out and no one should. No one forced you to invest here. It was your rational, well thought decision, I suppose, so why to blame the government or anyone.
For every investment, there must be some basic fundamentals studies. For overseas property the basic fundamental is the legal infrastructre prevailing in the place. Here it is missing. It think wise stayed away after reading the signs on the way.
Posted by Tehsin Asghar, Dubai, UAE on Thursday 28 May 2009 at 10:07 UAE time
TO Sayeda, no one is going to bail out and no one should. No one forced you to invest here. It was your rational, well thought decision, I suppose, so why to blame the government or anyone.
For every investment, there must be some basic fundamentals studies. For overseas property the basic fundamental is the legal infrastructre prevailing in the place. Here it is missing. It think wise stayed away after reading the signs on the way.
Dubai Auction
Posted by Big Boy, London, England on Wednesday 27 May 2009 at 16:01 UAE time
ONLY 4 PROPERTIES for Auction!!! Not much variety eh.
Properties Dubai in London had a similar event at the end of March with over 280 properties on sale.
Most of the speculators are from the UK and are now desperate to sell, they can take a bit hit in AED's because of the exchange rates. Some good bargains to be had from them.
Posted by Big Boy, London, England on Wednesday 27 May 2009 at 16:01 UAE time
ONLY 4 PROPERTIES for Auction!!! Not much variety eh.
Properties Dubai in London had a similar event at the end of March with over 280 properties on sale.
Most of the speculators are from the UK and are now desperate to sell, they can take a bit hit in AED's because of the exchange rates. Some good bargains to be had from them.
reserve price
Posted by duncan, dubayy, uae on Wednesday 27 May 2009 at 14:23 UAE time
does anyone know what was the reserve price? it would tell about the sellers' expectations from the auction...
Posted by duncan, dubayy, uae on Wednesday 27 May 2009 at 14:23 UAE time
does anyone know what was the reserve price? it would tell about the sellers' expectations from the auction...
Investors busted
Posted by Saiyed, Florida, USA on Wednesday 27 May 2009 at 13:41 UAE time
I will ask only 1 question...Who is going to bailout the investors?
Posted by Saiyed, Florida, USA on Wednesday 27 May 2009 at 13:41 UAE time
I will ask only 1 question...Who is going to bailout the investors?
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