But even though developers have to occasionally acquire plots of land through auction, not all of them are fond of the idea. Zaid Ghoul, the chief financial officer of Union Properties, says his company isn’t in the business of auctioning rental properties.

“Sale activity takes place as approved by the board of directors and comes as part of an overall strategy for restructuring the portfolio of rental properties,” he says.
Others such as Amir Giga, the managing director of Goldcrest Properties, say people don’t mind paying huge sums simply because there’s a lot of demand and a developer has the wherewithal for it. “Emirates Hills community is the best in the UAE at the moment, and Emaar can afford to do such a thing because their brand is established,” says Giga.

With an eye on the pie, auction firms and auctioneers are also trickling in to the region. South Africa-based Auction Alliance and US-based DoveBid came together in 2006 to launch their services in Dubai, which they felt had all the right ingredients to roll out such services. If things go the way they have been in recent months, renowned auctioneers such as John McGrath and John Canavan will become household names in Dubai, at least for the multi-millionaire club.

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