99acres.com and AHI to auction non-distressed
properties in India
Indian auction market, which
is defined as a space where distressed, foreclosure, and loan default
properties is sold, is yet to see the light of the day when it comes to being
counted as a popular medium of buying and selling real estate in the country. However,
the things are about to change in the country now.
Auction House India has collaborated
with India’s leading property portal, 99acres.com
to auction non distressed properties in Delhi. Auction
House India (AHI) is a joint venture between the largest property auctioneer of
United Kingdom, Auction House and New Delhi-based NU Dimension Advisory LLP.
Through this one of a kind auction, it is hoping to involve non-distressed
general properties such as shops and apartments for sale, playschools, and even
a couple of bungalows.
Even with the partnership of
99acres.com, which is an online property portal, AHI is following an offline
auctioning model. Their plan is to have a national
setup of auctioneers selling local properties via regional auctions. They
believe that this move to hold region specific auctions - will help them get
better price for their property.
Working on the track of regional auctions, AHI
is planning to host its first auctionof properties ranging from Rs.130-150
crore, worth the valuation of between Rs.15 lakh and Rs.15 crore in New Delhi,
this August.
With the help of 99acres.com,
AHI aims at offering complete details such as property condition and market
trend to the buyers. Also they have given the buyers an option to visit the
property before the actual date of auction. To help the sellers avail loans on
easy terms, AHI has even collaborated with a number of banks across the
country.
According to Saif Nawaz, the auction model will take some time to
become popular in the real estate models followed by the country, but with the
help of several banks and property investigators, it will become the one way
for the sellers and buyers to unlock the true worth
of the properties.
While it is on
time to show how the partnership between AHI and 99acres will make auction
selling a part of real estate’s buying and selling model, the present image of
property auctions remain that of an unreliable one.
The sellers are avoiding
auctions because of legal aspects like transfer of titles, which are considered
as extremely complex and time-consuming and as for the buyers; they are facing
problems of low transparency in terms of pricing and the lack of relevant
information, which are even limited at times.
The image that is attached with
auction model is something that is on AHI and 99acres.com to correct over a
period of many regional auctions.
For now,
considering the models ad plans AHI and 99acres have come up with, it is safe
to say that auction model have the potential to become an impactful mode of
buying and selling properties.
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