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Forget buying properties through local brokers. Auction House India (AHI), an auctioneer for both new and old properties, plans to hold regularsale to attract the best buyers.
A joint venture between the UK’s largest property auctioneer, Auction House UK Ltd (AHUK) and NU Dimension Advisory LLP, an Indian business house, AHI plans to make buying and selling of property easy, convenient and hassle-free for the end-user.
AHUK is a pioneer in the property auctions space in the UK, accounting for more than 12 per cent of all property auction sales (residential and commercial) in the country.
“Auction is an established means of buying and selling properties internationally. In countries such as Australia, New Zealand and the UK, consumers also rely on auction for speed and certainty. In fact, the model is available online as well. However, in India we will begin by holding auctions at various cities,” Saif Nawaz, Founder and Director, Auction House India, told BusinessLine .
Nawaz said in a typical property market in India, buyers face problems of low transparency in pricing and lack of relevant information, whereas sellers often have to deal with time-consuming legal aspects such as transfer of title.
He said Auction House will address these issues. Asked if the company will be selling distressed properties or new ones, he said it can sell both.
Sellers can approach the company to know more about property auctions, said Nawaz.
“Once a seller sends in a request to list a property for auction, AHI deals with all legal issues and publication of the property in the auctions catalogue. Within six weeks, the property is put up for sale in the auction. As soon as the highest price has been reached through competitive bidding in the auction room, the hammer falls and the property is announced as ‘sold’ which signals the exchange of contracts. The buyer signs the sale documents and pays a deposit with the balance of the sale price being due on a pre-agreed completion date,” he said.
In India, the company said it will look at properties ranging from ₹50 lakh to ₹15 crore.
The first auction will be held in Delhi on August 27. The company plans to have six to seven such events in a year. Nawaz said the company is looking to value of ₹150 crore worth of properties in the first year in India. The company has also tied up with banks and financial partners in order to facilitate loan disbursements. It is initially launching in Delhi-NCR and will gradually move to other cities, he added.
Last year, real estate advisory firm HDFC Realty in association with www.iBidmyHome.com had launched multi-property online home auctions.
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