Bidders fail to reach reserve price, properties move into third phase of the programme
The four properties auctioned included three villas in Arabian Ranches and one penthouse apartment in Jumeirah Beach Residences. Although bidders did not reach the reserve price for any of the properties, the auction event marked a new step in the maturing of the Dubai market. Buyer sentiment during the evening confirmed recent analysts' reports of a current divergence in buyer and seller expectations around the true value for property in the emirate.
The first property, a villa in Palmera in Arabian Ranches, opened at AED 2 million and was contested between two bidders up to AED 2.3 million before being passed in by the Auctioneer for private negotiations, as the final bid did not reach the reserve price. The second property, a villa in Al Mahra in Arabian Ranches, opened at AED 2 million and was passed in by the Auctioneer at AED 3.5 million. The third and fourth properties, a penthouse in Jumeirah Beach Residences and another villa in Al Mahra did not find an opening bid, and were passed in at AED 6.5 million and AED 7 million respectively. The properties will now pass into the third phase of the process where interested parties negotiate privately with the sellers.
Commenting on the evening's events, Kuceli said: "Despite the fact that we couldn't find agreement between sellers and bidders on the night, we did witness some competitive bidding for our first property and we understand that buyers remain interested in all the properties put up for auction. The process now moves into phase three, and we hope to generate buyers from the information we have gathered in phase one and two."
The auctioneering method of sale is unique in that it facilitates sales between a buyer and seller in the most transparent manner and puts the property before the price. The prices agreed over the upcoming monthly events will help Madania Real Estate provide accurate data on true market value for assorted types of property.
"I am confident that the auctioneering sales method will succeed in Dubai. We know it works well for distressed sales and in all mature markets it works for all property sales. We see Dubai as a maturing market and this method will evolve into the market indicator it has the potential to be. It will take time for people to understand the method we are using and become comfortable with the process. We plan to hold monthly events and we are confident that as the process becomes better understood we will see the number of sales increase." said Kuceli.
For full details about this and future auction events and the participation criteria for both vendors and buyers, please visit www.madania.ae.
About Madania:Madania Real Estate is a subsidiary of the long established, locally owned Al Tamimi Investments. This association provides Madania clients with the knowledge and comfort that Madania has the resources and the expertise that provide a powerful competitive advantage in the real estate industry.
The founding principle of the company is to provide outstanding service and this core objective is visible across all of its operations and pioneering services. Building upon its position as the first company to develop the deferred payment plan, Madania's latest innovation is the property auction programme which provides a true market value for properties with optimal transparency and efficiency. Madania adapts with the market and brings tried and tested techniques from other parts of the world to the UAE.
Madania operates in all market sectors of real estate and supports customers in their specific requirement by offering applicable, individualised service that will enhance their relevant transaction.
Madania offers a complete line up of real estate services, with competencies in selling, buying, leasing, auction (three-phase marketing program), advisory services, as well as the deferred payment plan.
For more information visit: www.madania.ae
© Press Release 2009
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