21 January 2024, Zawya
On Sunday, Alphabeta Properties launched its residential project M77 on Meydan Avenue, introducing unconventional rental procedures. M77 will determine its residents through an invite-only online auction, a unique concept in Dubai’s real estate market.
Comprising 77 apartments of 1, 2 and 3 bedrooms, the luxury building offers Downtown and Burj Khalifa views, a full-floor gymnasium, a 50-meter Olympic-sized pool, a smart keyless entry system and other amenities.
The developer has caped the rentals of the units with 1-bedroom apartments ranging between Dh105,000 to Dh150,000, depending on the size, which ranges between 900 sqft to 1,650 sqft. Similarly, annual rent for 2-bedroom units of 1,800 sqft to 2,000 sqft range between Dh215,000 to Dh260,000. At the same time, 3 BHK rentals cost between Dh250,000 to 350,000 per annum.
The online auction on Alphabeta Properties began on January 21 and will likely run for two weeks. Interested candidates are required to register, and those shortlisted will be invited to take part in the auction and also visit the properties in person.
The developer has already delivered over Dh1 billion worth of projects in different localities, including Al Barsha, Jumeirah, Al Safa and others. The company has built its portfolio around leasing, and most tenants are based in the affluent rental market segment.
“It’s safe to say that the invite-only rental bidding auction system is probably the first of its kind. I am not aware of anything similar to this for rent. For sale, yes, it has been done in the past,” said Abdulla Al Shaibani, founder of Alphabeta Properties.
“M77 units are ready. It’s almost like an open house. Attendants will be welcoming the invited guests. We have been doing some close-door viewing, but most viewings are scheduled on Sunday.
“In addition, we have reached out, through our exclusive brokerage house, to a lot of other agencies to consolidate a vetted list of tenants that we feel are the right fit for the building,” Al Shaibani told Khaleej Times in an interview.
Al Shaibani revealed that the idea for an online auction to select tenants stemmed from the strong demand.
Citing an example, he said several people attempted to offer higher bids for the same unit in the company’s previous projects, so it became a challenge to keep raising the price for friends and tenants he knew from previous buildings. So he decided to make it transparent and hold an auction, setting a date so that everyone had a fair chance to bid for the unit they wanted.
“We’re holding an auction so that tenants don’t feel that they were not given a chance to put the best offer and at the same, it is in our interest as a company to get the best price,” he said.
Al Shaibani doesn’t expect the auction to run the whole two weeks. Based on the demand his properties have witnessed, he expects 50 per cent of units to be off the market on Sunday itself.
“Our philosophy is that the best building in the area will always be occupied and will always be in demand.
“The rates we are able to achieve are easily 20-30 per cent above the market rate. It is not a serviced apartment, but we call it semi-serviced apartments as we offer a bundle of similar amenities – maid service and cleaning etc. – all that one can expect from serviced apartment hotels.”