The Dubai Land Department sold eight foreclosed properties in Dubai in the first bulk sale of repossessed homes in the emirate last week.
Reports in Dubai suggest that the sale may pave the way for lenders to offload millions of dirhams worth of repossessed homes in Dubai.
The foreclosed properties were sold for between AED740,000 and AED6m, thanks to realistic reserve prices, according to Richard Paul, the head of valuations for Cluttons.
“Initially reserve prices were just too high and now they are far more realistic and as a result they are attracting buyers.”
Hundreds of properties are in the foreclosure process in Dubai following the housing crash in the country, which has left many homeowners and investors in negative equity.
Until now, foreclosed homes have been slow to come up for auction, mainly because most officials were concerned about flooding the market with reduced priced homes at a time when prices have already plummeted by in excess of 50% across many parts of Dubai.
