In Dubai, some property buyers are getting 20-25% ‘bargains’

In Dubai, some property buyers are getting 20-25% ‘bargains’

Dubai: Coveted plots in Dubai Marina or the Palm aren’t the only deals investors can get through an auction – buyers will find they can even end up owning upscale homes at a fairly steep discount to their prices in the secondary market.

Just recently, a two-bedroom unit at The Springs sold for a shade over Dh1.9 million, and well below the Dh2.3 million to Dh2.5 million similar units at the same location fetch in one of Dubai’s legacy freehold communities. Needless to say, this and other such listings were snapped up instantly at the auction.

There was also a Dh18 million sale of a Palm Jumeirah home, that in the secondary market would have sold for Dh20 million and above.

“On the auctions, such sales on ready homes are being finalized at a good 20-25 per cent lower than prevailing market prices,” said an estate agent. “You need to get lucky for the right choice of property to come in at a better than expected asking price.

“But these are happening more regularly, typically repossessed properties after the owners failed to meet mortgage payments. The sellers, which are the banks that have lent the mortgages, are willing to exit