By Elsa Baxter
Madania Real Estate to hold second auction despite first being a total flop.
Eight properties will be auctioned off this month despite Dubai’s previous property auctions being a total flop.
Madania Real Estate will hold its second auction on Wednsday, where a range of apartments and villas will go under the hammer.
The firm’s previous auction in May, which was the first ever to be held in the UAE, failed to drum up any interest with none of the four lots making their reserve price, and two of those receiving no bids whatsoever.
"We plan to auction eight properties on July 22,” Raymond Kuceli, CEO of Madania Real Estate, told Emirates Business.
“Up for auction will be two four-bedroom villas in The Meadows; two four-bedroom apartments in Jumeirah Beach Residence; a single bedroom apartment in International City; and three commercial offices spaces in Jumeirah Lake Towers."
According to the paper, Sherwoods Independent Property Consultants is planning an auction in October or November.
“We would like to target a similar number of properties, about 20 to 30 units and it should be a mix of residential and commercial property – vacant and tenanted," said Jeremy Mayhew-Sanders, Head of Investment and Developments, Sherwoods Independent Property Consultants.
Out of interest I had a look at the properties listed for auction on Madania's website. The pictures are awful and unprofessional. Surely if you want to sell those properties, invest a little time in posting some decent pictures. The pictures of their listed property JBR-MUR-6-012 shows a dark & dingy bedroom, and a blurred photo of some carpark at JBR.....!!?? And of course, the standard photo of the view, including all the building sites. Who wants to buy that? But I guess it's the same as 99.99% of all Dubai Real Estate agents; fancy websites with NO decent info/pictures whatsoever of the properties they're trying to sell/lease.
Has anyone ever wondered HOW can one auction go ahead if the SELLER has a VERY High price set in his mind! Think abt it.... auction is a good way to go, if U can't sell it initially, but that is the key reason FOR an auction. U HAVE to come down to a reasonable, sometimes INSANE pricing levels, just to get the property SOLD. The first auction being a PR disaster was enough to open everyone's eyes. I HOPE this works out better, but again, FLEXIBILITY is the KEY here. Take a LOSS or make TINY profit, and get moving, instead of holding it, depreciating it even further, not knowing what the future holds. Good Luck!!
I cinsider this a pure Public Relation event. Even bad advertising is still advertising.
We are watching the auction and waiting for outcome of this auction to see if there are any improvement on previous auction.
Personal experience market is really going down every day. But speculators are the one who are making us to believe that market is improving I don't agree. And auctions are really disaster because the opening price is too high to even think of bidding from real buyers. Please come down to reality and when across the world property market is down why we in Dubai are shame of it.
Everything has a price, and if you want to sell, you need to be prepared to drop the price until it does sell. No reserve. Most business people understand that selling at a loss is not good, but makes sense if waiting 6 months or 1 year will only see an even greater loss. That is why stores have clearance sales. The problem is that most owners in Dubai are not business people and are simply storing up bigger losses for themselves by hanging on in there when a falling population and more and more building completions means a saturated market is only going to get worse.
Glad to see you are going ahead with the second auction. At least you are trying to educate the masses over here finally as to what an auction is, how it runs etc etc. New concept for everyone here yes although we in Europe, the America's and Australia have been going to auction for years. It will catch on just like the UAE national horse owners love purchasing horses in Europe at Auction. Mark my words a few months down the road every tom, dick and harry and Emirati will be buying up everything at auction here unless the market turns and there is an upswing again in which case no need to buy from auction necessarily. From one of your female sellers at the first auction you held and yes as we both know I did get two bids on my property the first that was up for auction that nite! YNS
We were all waiting for Mr. Omar to come and drive up the bidding since he has been searching all over Dubai to buy property. Try calling Madania Real Estate, I'm pretty sure they'll return your calls and even grant an appointment to serious buyers.
Anyone know what happened at the auction on Wednesday, cant find any media coverage ???
@Dan... I heard him talking on Radio this morning. They still didnt sell any property but they are calling it a success anyway because one bid was actually close to the reserve price. and most didnt recieve any bids