Dubai Property Auction Makes No Sales

Dubai's first property auction took place last night, and not a single one of the four properties up for auction was sold. On the block were three villas in Arabian ranches and a penthouse in Jumeirah beach. Bids were received on only two properties, but both failed to sell. Prior to the auction, the organizers were excited to be able to "see a true reflection of the current market value," so it seems the current market value is somewhere below the reserves.

All around the world, property sales are drying up - with a huge disconnect between buyers and sellers. Despite property prices in Dubai having fallen between 50-70% already, they would appear to be still over-priced. With the summer season upon us, there is another exodus of ex-pats expected, which will only add to the glut of property for sale in Dubai, adding to the downwards pressure. Combine this with yet more and more completed projects hitting the market over the next two years, and it is anyone's guess where the bottom of the real estate market will be.

Three Villas in Arabian Ranches failed to sell at Dubai's first property auction