Recently, an increase in the number of housing auctions in the Emirates in the coming few months was forecast by the Harbor Report, a publication on news and trends in the real estate industry, published by Harbor Real Estate.

Mohanad Al Wadiya, Managing Director of Harbor Real Estate Brokerage, said: "Auctions are very popular and well established in many other countries around the world. Our findings suggest that as the Dubai Real Estate industry matures, auctions will soon become more popular on the Dubai property scene. This is not likely to replace the traditional ways of selling, but will rather enhance selling operations and give the buyers in this country more options."

The Harbor Report estimates that the industry will observe a shift towards auctions, as more and more sellers thrive hard for a sale and fight back to find buyers. Because of the high number of off-plan property sales, Dubai was earlier a seller's market; however, in the post-recession environment, it is the buyers that now have significant market power. 

Al Wadiya added, "The primary advantage of an auction is that it is competitive, well regulated, fair and transparent. In addition, properties that are auctioned are usually purchased at a price that reflects the current market value. This is due to the competitive bidding process and the fact that the buyers determine the purchase price.  If the auction system is well regulated and administered, buyers know they are competing fairly and on the same terms as all other buyers. Furthermore, auctions are convenient in that they can effectively eliminate long negotiation periods and facilitate quick property transactions."

Auctions of property are planned so that the person who gives the highest bid on the property wins the right to purchase it. Interested individuals must register beforehand to take part in the auction. Tours will be set at select properties for all registered individuals with the aim to make sure that all bidders are fully briefed about the properties for sale.

Al Wadiya explained, "The idea behind the property tours are to ensure that all bidders are fully briefed about the properties they are interested in purchasing.  This should hopefully encourage more buyers to go to an auction as well as make the process easier, more informative and more enjoyable."