The Dubai Land Department (DLD) sold a total of 11 properties for Dh85.69 million at an auction yesterday fetching 11.7 per cent over their base price.
A total of 21 properties were on offer at the DLD private property auction yesterday. Of the 13 leasehold properties, 11 were sold, while there were no takers for the remaining two.
The eight freehold properties on offer were put off for the next auction scheduled for June, Humaid Omran Al Shamsi, manager of the Public Auction Section, told Gulf News.
Asked whether the Central Bank regulations capping mortgage loans were affecting demand at the auctions, Al Shamsi said: “Most participants are investors, as opposed to end-users. The Emirati buyers all paid in cash. There is no effect from the mortgage rules, the prices speak for themselves.”
The most expensive property sold was an apartment building in Murraqabat that went under the hammer for Dh39 million compared to a base price of Dh38 million.
Demand for property during these auctions has improved over the past year, he said.
“It’s excellent. Now most of the property market is active and investor confidence is back,” he said.
The previous auction held in February earned Dh200 million to Dh250 million, Al Shamsi said.
The auctions are held as part of property inheritance sell-offs decreed by the courts, he said.