Madania Real Estate has made its first auction property sale following its second public auction event held on the 22nd July 2009. Raymond Kuceli, the auctioneer and CEO of Madania Real Estate, put eight properties under the hammer at the Al Murooj Rotana Hotel including two residential properties in the Meadows and Jumeirah Beach Residences, one apartment in International City and three commercial office spaces in Jumeirah Lake Towers.
While the lots failed to meet their reserve prices on the night, post event negotiations delivered the first sale during the third phase of the auction process. The Meadows villa with landscaped garden sold for above AED 4.2 million.
Although bidding levels at the auction event were still below sellers’ expectations, the gap between buyer and seller price positions has narrowed. In the instance of the successful sale, parity was achieved. Madania remains confident of building on the success of the first sale at its next auction, planned for October.
Commenting on the auction property sale, Raymond Kuceli, CEO of Madania Real Estate said: “This sale is a real milestone for us. My team has worked hard to achieve our first auction property sale and I’m delighted for them and, of course, our client. It reconfirms our belief that the auction method of sale will work in Dubai. In the months to come we will continue to pioneer this method, and educate sellers and buyers about the advantages of buying and selling property at auction.”
Kuceli added that the increased bidding activity at the auction, and the doubling of properties auctioned - up from four in May to eight in July – were both positive signs and indicators that buyers and sellers are becoming more comfortable with the process.
“The biggest myth we’re trying to dispel among bidders at the moment is the belief that they will get rock bottom prices simply because it’s an auction. The auction method of sale is really about getting the fairest market value for any given property on the day,” he said.
During the recent auction event held, all five registered bidders entered into the action, focusing on three of the eight lots up for auction. Eight bids were made on the second lot of the evening, an apartment in Jumeirah Beach Residences, starting at AED 2 million and increasing by AED 100,000 increments until it was passed in at AED 2.65 million. The sixth lot to be auctioned, a villa in The Meadows, started at a bid of AED 1.5 million and was passed in at AED 3.3 million after 10 competitive bids. It subsequently sold during post event negotiations. The final property up for auction, also a villa in The Meadows, was passed in at AED 3.35 million after six bids were made from the floor.
The auction itself is phase two of Madania Real Estate’s 60-day, three phase auction process. Phase one begins with a vendor signing up exclusively with Madania Real Estate and the onset of an aggressive four-week minimum marketing campaign. If the property does not sell at phase two – the auction event – the third phase uses all the information gathered during the first and second phase to generate a buyer.
The auctioneering method of sale is unique in that it facilitates sales between a buyer and seller in the most transparent manner and puts the property before the price. The prices agreed during the regular auction events will help Madania Real Estate provide accurate data on true market value for assorted types of properties.
Madania Real Estate is a brokerage firm offering a full range of real estate services with competencies in selling, buying, leasing, auction (three-phase marketing program), advisory services, as well as deferred payment plans. Madania aims to set the benchmark for the auctioneering sales method in Dubai.