The Dubai Municipality held the first-of-its-kind auction to lease out its villas and shops located on the main Jumeirah Road stretching from Union House to Burj Al Arab. A total of 12 commercial villas and 12 shops with sizes between 3,500 square feet to 5,000 square feet were auctioned to those who participated in the bidding at the free and fair auction, organised at the municipality’s club in Al Jaddaf. The villas can also be used for residential purposes.Salah Al Qaiwani, Head of the Specialised Contracts and Investment Section, Dubai Municipality, said, “The municipality had built villas mixing traditional and modern designs as part of the Jumeirah 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.”More than seven shops and eight villas were auctioned out yesterday in the first phase, which drew a big crowd of bidders from Dubai. These premises were given to the persons who made the highest bid. Bidding started at Dh 50,000 for the shops and Dh 25,000 for the villas and the highest bidders were given the premises. This amount according to the municipality is the ‘access’ money and is over and above the rent which is fixed at a certain amount. The rent is between Dh 170 per square foot and Dh 230 per square foot per year, which is cheaper than the current market value on Jumeirah Road according to the municipality.The highest bid registered by the municipality was Dh 850,000 and this came from a bidder who grabbed away a villa marked as RD 8, Villa 1 and the lowest bid was Dh 225,000 for villa RD 15, Villa 1.
The money will be paid to Dubai Municipality in four installments of 25 per cent for each cheque. The construction of villas is part of the municipality's projects of investments and privatisation activities. The villas have been built after demolishing old shops and houses owned by UAE nationals. They are still in the name of UAE nationals, but the Municipality invested in the construction. Both will share the income.
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