Dubai auction bidders 'should inspect properties'
19/06/2012 - Dubai Property News
Posted by Bob Brunskill
This year, auctions have proven to be a success in terms of advertising opportunities for property investment in Dubai, with many people paying large sums to secure sought-after villas and apartments in the emirate at these sales.But, it has been revealed by Emirates 24/7 that the vast majority of those purchasing units or buildings through these events are not inspecting the lots before signing on the dotted line.This can be risky, because there are factors such as traffic noise, the neighbourhood and local businesses that might influence somebody who did visit the property prior to bidding to look elsewhere for an investment prospect.The newspaper claims a number of brokers who bid at auctions on behalf of buyers say most of the individuals they represent do not reside in the country.An insider said: "We don't think these bidders ever inspect the foreclosed properties. We are just told to bid within the given limit ... the onus of inspecting these properties beforehand is on us."One investor, UAE national Ibrahim Ali, has purchased several units at auctions held by the Dubai Land Department, but he has never checked out any of these lots before acquiring them.What he does find out is the exact location of the property once its details are published and if he approves then he will happily hand over a deposit.Two months ago, Mr Ali bought a villa in the upmarket community of the Springs for AED 2.32 million (£403,000), which is 16 per cent more than the reserve price.Mr Ali is convinced the Dubai property market will move in his favour."I am confident that villa prices will increase. I am not going to sell it less than AED 3 million," he commented.Although the buyer is happy he knows what he is doing, associate at Hadef & Partners Ashraf Sayed advises bidders of auctioned properties to consider carrying out inspections of buildings they are looking to invest in.He revealed that individuals can request access to units up for auction through the Dubai Land Department if it is not currently tenanted. If you need help finding property in the UAE then get in touch with The First Group
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