Dubai Villas Auction: A Great Investment Opportunity for Real Estate Lovers

DUBAI Investors checked their smartphones, tablets and notepads for property details yesterday before lifting blue paddles to confirm their bids.

Indian, Pakistani, Emirati, Arab and Chinese residents and brokers snapped up villas at competitive prices at an auction that officials hope will stimulate interest in future bulk sales of homes that have been repossessed by banks.

Of five villas in Dubai with unpaid mortgages that went under the hammer, only one was not sold.

The homes, all in the Springs, fetched between Dh1.2 million and Dh2.26m - about 15-30 per cent above the asking prices.

"This is a really efficient way to get banks to write off a portion of their debt," said Kalpesh Sampat, director of the property company SPF Realty, who successfully bid for a villa.

"Plus, you are sure of a clear title. People have peace of mind because the Land Department is involved."

"Dubai is attractive to Chinese people who work here," said Wendy Shen, a Chinese national and marketing manager of West Legend Real Estate. "Many put money in Hong Kong and Singapore. But Chinese who set up business here and have bought houses to stay, they are looking for more investment."

Land Department officials said the level of investor participation was encouraging.

"There is a lot of interest and the bidding has been good," said Humaid Omran Al Shamsi, section head of the registration department. "The concept is still new but properties are selling well."

The Land Department registered its first auction of repossessed homes in December. It has said that more than 80 properties will be auctioned off this year.

The value of property for sale Dubai transactions increased by 20 per cent last year from 2010, touching Dh143 billion.

Experts see these auctions as a positive indicator.

"The market conditions are improving," said Ian Albert, regional director at the property consultancy Colliers. "The history of auctions in the UAE is still new. As it grows, it increases confidence of banks and investors."

This was really a great auction for real estate lovers. Still, Dubai has multiple accommodation options in the shape of apartment in Dubai, houses, condos and many more. The only thing you need is to make some online search to find out which Dubai real estate is suitable option for your future investment.

How to Handle Property for Sale Dubai

Dubai known as the second home of the top class people of the world, is also a main hub of the business world. Most of the corporate sector is associated with Dubai for the daily transactions of their businesses. Being crowded in every industry, the property sale market is always overcrowded with a number of buyers, sellers and servicing companies with a lot of agents. In such a professional environment, it is very important to know how to handle Dubai property sale market. 

You can make the process of buying easier through a little planning. Plan your task and then take a step towards market. It seems to be a time consuming process but you can save a lot of money and time through planning.  Whenever you want to buy a property for sale Dubai, there are few things which you should always consider to handle the issues in the property market. 

It is difficult to face the situation when you want to buy an apartment in Dubai, villa or any other Dubai accommodation even in your own national markets. First find out the companies which are best performers of the market in property dealing. As for a buyer’s agent and then let your agent work for you with a great expertise and information. 

Don’t panic either your agent would be sincere with you or not. You would be provided the quality services in this case, but you have to seek a good agent first. 

Make it clear to your agent first that what are your requirements. Make sure whether you want to buy apartment, house on rent or villas in Dubai. If you specify which kind of property, what facilities should be there in the property and what should its location, and then you would be able to save a lot of time. 

When coming to tackle the issues in Dubai property sale market, it would be better to involve an agent and make the documentation in a systematic way. However you have to pay a little fee to the agent, but your work be carried out in a better way, so I would advise you to search an agent first and then enter the Dubai property market to handle all those expected issues.

Dubai Real Estate 2012: A Golden Opportunity to Buy Your Property in Dubai

You might have read the reports about Dubai real estate highlighting kick-start to recovery in 2012, but I would say, this is merely a predication based on “the feel good factor” of the property stakeholders. I believe property prices in Dubai have not shown any remarkable recovery in 2011, which reports show. These are just the sellers and owners of the properties who want to derive the prices up through rumours. The fact is property prices in Dubai are still not touching the bottom level but yes, we can say they are near to touch the bottom.

It is expected that the mid-2012 would be the time for Dubai real estate when prices of the properties will touch the bottom level in real. However, despite that recovery cannot be expected even after mid-2012 due to the heavy supply of the residential units expected to add to the market in the year. Some experts are even not predicating much demand as they think people are still hesitant to invest in Dubai properties. In contrast to what the reports highlight, the year 2011 remained another challenging year for Dubai real estate.

On the other hand, the prices of properties in Abu Dhabi are expected to fall by another 15% in the following year. On the other hand, rents in Abu Dhabi are also predicted to fall by another 10% during the year after which the recovery can be expected. Abu Dhabi property prices will continue to decline because the crises hit Abu Dhabi real estate late as compared to Dubai real estate and so this sector will also spring back to life late.

Average prices of the residential units in Dubai like Apartment in Dubai, villas or many other accommodations fell by 12% in Dubai where as in Abu Dhabi the average prices of residential properties dipped by 17% in the previous year. Prices of villas and their rents opposed to apartments showed slight increase in prices. Though overall in 2011, Dubai real estate prices declined but this is evident that the rate of decline slowed down as compared to the rate of decline we noticed in 2009 and 2010. Still if we look at the trend of prices in 2011, we cannot predict quick price recovery in 2012.

Also the prices of rent in Dubai are expected to continue their declining trend in 2012, unless they touch the bottom level. Once they will touch the bottom level in mid 2012, it is not necessary that they will start recovering. They can also remain stagnant unless demand originates and problem of oversupply resolves to push the prices up.

What mostly Investor Concern About investing In Dubai Real Estate?

In terms of real estate business, Dubai in itself is a hot selling brand. With Government taking keen interest in execution and completion of so many amazing projects, and the last decade showing a constant growth, Dubai economic future looks bright. Investing in Dubai real estate is becoming every investor's dream, although some raise questions on issues like high demand vs. low supply and infrastructure problems. Let's have a look at what's positive and what's not with investing in Dubai real estate.

High Demand:

One thing is for sure, Dubai properties are in demand. Investors from all over the world are flocking to Dubai, to get a share in huge profits. Since non-residents of Dubai have been allowed to buy the property in Dubai, Dubai is flooded with interested investors. Everybody seems excited and exuberant about ongoing development plans. It will take some time before these jaw dropping constructions can be matched at some other place of the world.

Lower Prices - Higher Value:

Rapid increase in property prices has created the impression that real estate prices are high in Dubai, which is completely wrong. Comparison will reveal the true picture. Apartment in Dubai is still undervalued if we take into amount these factors. Dubai is going through an economic boost and with properties prices hiking quickly; the perfect time to invest is now.

Tax Free Zones:

Dubai government has offered so many incentives to attract investment, tax free zones are one of them. Free zones like Jebel Ali free zone, Dubai international financial centre, Airport free zone and Maritime city, presents great opportunity for investors. Dubai offers unsurpassed tax incentives in the world for businesses. More and more companies from all over the world are setting up their business in these free zones.

Tourism:

Approximately 6.5 million tourists will be visiting Dubai annually by 2011. World's biggest arts & entertainment events are held here, making it even more attractive.

Political Situation:

Dubai enjoys political stability and steadiness which is rare in most parts of the world. Since its establishment, Dubai has never been under political chaos, riots or disturbance. Policies are not shuffled and you can invest with the sense of certainty which you will hardly find anywhere else.

Crime:

It's hard to believe but crime rate is almost zero in this part of the world. With no reports of robbery or theft going around, Dubai is a safe place to live. In today's world, this kind of peaceful place appeals everyone desperate to live a life, free from anxiety.

Here are some factors which are mostly determined by many real estate investors in Dubai. Whether you want to buy a real estate property in Dubai or want to apartment for rent in Dubai, this is a place for a profitable real estate investment.