First public auction of Dubai properties due next month
The first public auction of repossessed properties in Dubai is due to take place next month and officials are also clamping down on illegally occupied buildings.
Dubai’s Land Department has begun evaluating repossessed properties ready for the first auction of its kind in the emirate where real estate prices have fallen by up to 50%.
‘We anticipate the first public auction to be held in a month’s time,’ said Jody Waugh, a partner at Dubai based legal firm Al Tamimi and Company.
‘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,’ she explained.
It is understood that around 10 properties have been approved for auction by Dubai Courts and valuations have been set at current market prices so they are likely to be a considerable bargain as real estate prices have halved since their peak at the end of 2008.
Meanwhile, power and water supplies has been cut off at 21 illegally occupied homes in Dubai as part of a campaign to clear overcrowded villas. More are expected and illegal generators are being seized. Officials want to stamp out the growing number of people living in overcrowded villas who do so because they cannot afford current rental prices and in doing so bring down the values of neighbouring properties.
Some villas are reported to have over 100 people living in them, many of which are in the Al Jafliya area. Those living in these conditions are sleeping in hallways and courtyards, officials said.
Other areas being targetted include Deira, Mankhool, Satwa and Jumeirah. In a recent poll for Arabian Business opinion was divided as to how to solve the problem of overcrowding in some Dubai homes.
Some 35.6% of people said there should be cheaper rent options for lower paid workers, while 35.4% said the emphasis should be on companies to provide accommodation for their staff.