By Elsa Baxter
Leading lawyer says first public auction expected in a month's time.
Dubai’s Land Department is set to hold the first public auction of repossessed homes in a month’s time, a leading lawyer has said.
The real estate authority has begun evaluating repossessed properties indicating it will soon announce the date for its first public auction, a partner at the Dubai-based firm Al Tamimi and Company said.
"We anticipate the first public auction to be held in a month's time. However, we are not sure since it is summer time,” partner Jody Waugh said at a seminar, reported by Emirates Business.
"We have received the first evaluation from the DLD on a property that will be publicly auctioned. It is an official evaluation from the Land Department. So, I believe we are close to our first public auction under the mortgage law.”
According to the report, 10 properties have been approved for auction by Dubai Courts. They have been set at current market prices, Waugh told the paper.
It will be very interesting to see what 'figures/valuations' DLD put on these properties or whoever is given the task. If its anyone from RERA or DLD its bound to be rediculously high...as though there hasn't been a drop in market price for the last 18mths. It will be very interesting to see what these properties are sold for because it will give an indication of what the market is prepared to pay. The gulf between advertised market prices actual auction sales will be huge...and that will indicate approx' where peoples/investors comfort levels are for certain properties. It won't be good for owners needing to sell the properties they own by the normal real estate route. There will be need for general properties to fall into line close to auction prices. Tim will tell...but the writing is on the wall
The most important thing would be to see the actual true background of the Bidders who participate. Efforts should be made by authorities to ensure a fair auction without individuals backed by soverign funds purposely bidding high with a biased agenda. Ask any experienced brokers and they will tell you the real price... or why dont you ask a Bank to evaluate it, with a guarantee to Finance it upto 80% LTV, the true picture will surface.
isnt the point with auctions that the auction bidders decide the price. otherwise its not an auction. Ok reserve prices on many items are not unusual at auction, but the idea of the Land Department setting the prices seems to be extraordinary - wouldnt it be better to let the bidders decide on the prices - then perhaps we would get a true indication as to what is market...