99acres.com and AHI to auction non-distressed properties in India

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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