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Asteco to use online auction route for Dubai property

By Parag Deulgaonkar Except for Dubai Land Department's public auction, which saw a number of foreclosed properties being sold this year, property auctions held previously by private companies have failed to gain traction in the UAE.
In 2008, a number of companies entered into the auction business. Though some did hold auctions for a few properties, none were ever sold. Following the lack of interest by local investors, some closed shop, while others never dared to venture out again. But none of the auctions were done online.
Now, a local real estate consultancy is reintroducing the concept online and believes it will offer their clients a competitive advantage over traditional real estate sales and marketing tactics.
Asteco Property Management, a real estate consultancy, has signed a partnership with LFC International Real Estate Brokerage, international real estate auction-marketing company.
LFC is the same company that recently put a corporate suite in Burj Khalifa, the tallest tower in the world, on auction.
"The real estate market in the UAE, particularly Dubai, continues to draw a significant amount of interest from institutional and private investors from overseas. Furnishing these financiers with the opportunity to invest in local property through a safe, secure and transparent online auction will undoubtedly make it more convenient and therefore even more popular," said Elaine Jones, CEO, Asteco Property Management.
LFC is a member of the US-based LFC Group of Companies, which has been auction-marketing residential, retail, commercial properties as well as land, worldwide for over 35 years.
LFC has successfully auction-marketed thousands of properties online, with sales in excess of $5 billion and for the last seven years.
Typically the process for an owner to sell their property via the online auction begins with submitting an agreement, establishing the minimum bid and setting the bid deadline, which is usually 30 days after the property's profile page is "live" on the auction website www.FRE.com.
Interested buyers can then view property images and conduct due diligence directly from the website, as well as place their bids. Once the auction concludes and the reserve price has been met, the highest bidder is contacted, a solicitor is instructed to carry out all legalities, contracts are exchanged, funds released and the sale is completed.

© Emirates 24|7 2012

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