UAE property 'up for auction'

UAE property seekers can pick up bargains in Dubai as a number of auctions are taking place there, it has been revealed.

Those keen to grab a cheaper residence in the emirate will be able to do so thanks to a fall in demand caused by the world economic and property downturn, the BBC reports.

Prices there have dropped by 40 per cent since last year and around 40,000 under construction will come on to the market in the coming months, the corporation noted.

Auctioneer Raymond Kuceli from Madania Real Estate said many people in the region have not yet grasped that an auction does not mean exceptionally low prices.

He told the broadcaster: "The biggest myth we're trying to dispel among bidders is that they'll get rock-bottom prices simply because it's an auction."

However, the company's first sale by this method saw 50 per cent trimmed from the price it would have commanded last year.

The price decline in Dubai has slowed down, according to a recent report by Colliers International.

Noting a nine per cent drop in the first quarter of this year, it said this level of decline is "very unlikely to be repeated".