The quest to find a buyer for 15.33 million square feet, spread across 794 plots at Dubai’s Falcon City development, continues. The seller has now lowered the asking price to AED 1.3B on the auction site, down from the initial AED 2.79B base price.
“This reduction to AED 1.3B significantly enhances the chances of finding a buyer,” stated a consultant. “A price of AED 2.79B was considered too high, which likely deterred potential bidders, even when it was brought down to AED 1.9B recently.”
Falcon City Thrives Post-COVID with Strong Demand
Falcon City is an established community that witnessed increased demand for its villas and townhouses post-Covid. The existing resident base adds to its appeal.
It remains uncertain whether the auction will entail a single bid for all 794 plots or allow multiple buyers to acquire portions of them.
“This is the largest real estate piece ever auctioned,” noted a consultant. “This is unprecedented, and potential buyers will thoroughly evaluate the pros and cons before committing to such a substantial amount. A AED 1.3B investment in Dubai’s thriving real estate market for such a significant chunk is a promising opportunity for any buyer.”
However, some individuals have expressed concerns about the auction, as the land being sold includes plots they had previously reserved for their new homes, complete with sales and purchase agreements and title deeds.
The fate of these existing property owners in the auction process remains uncertain. It’s important to note that, under auction rules, past liabilities do not transfer to the auction bidder upon completion – the sale will be “as is.”
The local property market is experiencing an influx of auctions, driven by the current real estate boom. For sellers, typically banks and lien holders, it’s a reliable means to recover their owed amounts, or at least a substantial portion of them.
