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The UAE is becoming one of the leading realty markets in the world. The country displays an array of properties for different budgets, with an ensemble of studio apartments to huge villas. With a host of options available in the desert cities, even the wisest investors get attracted to property auctions as they seem to hold an enticing charm. Taking advantage of this, the Dubai Land Department (DLD) has started auctioning properties.
In 2012, DLD auctioned seven freehold properties from which five were sold. It witnessed cutthroat bidding with a set price that ranged from 8%-20%. However, for the first time, DLD organized an online auction with an online partner in 2013 that saw bidders warring over residential and commercial properties. The bidders had access to the details, pictures and location maps of each property.
This year, an online real estate auction platform called eZayed was launched in Dubai. Approved by the Real Estate Regulatory Agency (RERA), it currently offers online and offline bidding from any part of the world. The auction will mainly feature highly in-demand and completed residential properties in Dubai, but will also include select commercial properties. It would later expand to auctioning properties across the UAE and the Middle East.
Usually, auctions are held for cash buyers, but the portal may get leading banks to back the auction purchases in the future. Furthermore, to attract buyers/sellers, the portal would manage all their paperwork and obligatory processes for free, but buyers have to deposit a refundable security amount. Sellers are legally forbidden from receiving counter offers after a successful auction.
Both online and offline auctions have a similar process. The auction date, time and venue are announced 30 days prior to the event. The difference is, in offline auctions, bidders bid live at the venue, while in online auctions, bidders log in with their pre-allotted passwords on the specified time to bid. The unsold properties are re-evaluated and sometimes re-auctioned with a new price.
• Online auction platform eZayed will primarily feature residential properties
• Currently, only completed properties located in Dubai will be set for auction
• Portal initially allows cash buyers but may get banks to back purchases in future
Find out why Dubai's luxury real estate still makes sense
Source: Arva Shikari, Special to Properties
The writer is a freelancer