DM auction for Jumeira properties fetches Dhs15.8 million

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There were 12 villas and 12 shops up for grabs in the auction and their annual rent ranged from Dh170 per square foot to Dh230 per square foot, depending on the location and size.

According to Salah Al Qaiwani, Head of the Specialised Contracts and Investment Section, who also heads the Jumeira Auction Committee at Dubai Municipality, the auction's results were unprecedented.

'Despite the rent being not so cheap, the key-money offered far exceeded our expectations. This proves two points: first, there is a huge demand on commercial shops in popular areas like Jumeira and second, the business community has a strong confidence in Dubai's economy,' said Al Qaiwani.

He noted that the highest sum recorded was Dhs1.75 million on a 1310 square feet shop while a 2621 square feet villa fetched a key money of Dhs850,000. Their annual rents respectively were Dhs300,000 and 524,200.

He said the Municipality had built the villas mixing traditional and modern designs as part of the Jumeira Road Beautification Project. The road has already been expanded from four to six lanes and it has become a posh street in Dubai housing a large number of restaurants, shops, clinics, shopping centres, beauty salons and clubs.

'The municipality's villas are located at different locations on the main Jumeirah Road stretching from Union House to Burj Al Arab,' he said.

There will be no rent increase for the next five years. The sizes of the villas are between 3500 square feet to 5000 square feet.

Al Qaiwani said the construction of villas is also part of the municipality's projects of investments and privatisation activities.

'These villas have been built after demolishing old shops and houses owned by UAE nationals. We have invested money but they are still in the name of UAE nationals. We will share the income with them and hand the houses over to them completely after recovering our investment,' he said.