Nakheel Nets Dhs34m In Jumeirah Park Land Auction

Dubai developer Nakheel said on Wednesday that it earned around Dhs34 million in an auction of prime residential plots in its Jumeirah Park community.

The developer auctioned off eight plots, each selling for an average of Dhs4.3 million, a statement said.

More than 50 investors signed up for the auction with buyers paying over Dhs500 per square foot for the residential land at the Jumeirah Park community. The plots measured 8,820 square foot each.

“Today’s land auction was a great success. Nearly 80 per cent of attendees had registered a day in advance, highlighting the huge appetite for prime land in Dubai,” a Nakheel spokesperson told the media.

Dubai’s property market has been rebounding strongly in 2013 with prices rising around 30 per cent on average. The emirate has also seen an increasing investor interest in its properties.

Dubai Land Department (DLD), the emirate’s real estate authority, has been holding successful online property auctions through its property portal eMart.

The portal recently hosted its third auction on February 9 with five commercial and residential properties worth Dhs190million on offer.

The first auction, held in December 2013, sold 11 properties for about Dhs74 million, while the second auction, held in January this year, witnessed the sale of seven commercial and residential properties for a total of Dhs27.57 million.

With the real estate market on an upswing, developers have been launching several new projects this year to meet the demand.

However, the International Monetary Fund (IMF) has warned the government to regulate prices in order to avoid another property bubble in the market.

Dubai’s real estate authorities have introduced regulatory measures, which include the increase of property transaction fees to reduce flipping. The UAE’s central bank also approved a ruling that would limit the availability of property mortgages to buyers.