Dubai Land Department (DLD) expects to auction up to 80 properties in 2012. Banks taking actions to recoup losses from homeowners in mortgage defaults are the initiators of the auctions.
The property registration agency, which auctioned 35 properties last year, said it could auction up to 35 homes in its fourth sale, scheduled in April.
It is expected the number of real estate auctions to grow this year and reach nearly 80.
The forthcoming auction is the 4th so far, but more are planned.
Approximately 30-35 properties will be auctioned in April and May. Maximum of five properties per day will be subject of the process.
The properties, 70 percent of which have been repossessed by banks, are in several locations across Dubai including Dubai Marina and Jumeirah Beach Residence.
Dubai introduced a repossession law in 2008. Under the new set of regulations, Dubai banks were authorised to give defaulting homeowners 30 days notice to resume mortgage payments before beginning foreclosure proceedings.
Real estate auctions are still in their infancy in Dubai but could prove popular. This new market is not tested in the UAE yet. It works in a huge amount of countries all over the world very successfully. It is an efficient way to dispose a property. It is very much likely to grow in the coming years.
The total number of property sales in Dubai rose 53 percent in the first quarter of 2012, according to official data from DLD. While the volume and value of transactions is up year-on-year, the market is still far below the 1,500 transactions worth US$5.09bn that took place in 2008.
