The real estate industry critically depends on property valuation as an important process of determining the fair market value of a property. The process of Dubai’s property valuation is guided by certain guidelines and protocols so as to ensure precision and fairness. In this blog post, we will discuss all the steps that are involved in the property valuation procedure.
Purpose of Property Valuation:
Property valuation in Dubai is done for various reasons including purchase or sale, mortgage/loan application, and estate planning. Such factors as location, size, amenities and condition determine the current market value based on which such valuations are carried out.
Methods of Valuation:
Valuing properties in Dubai mainly employs three approaches; sales comparison approach, income approach and cost approach. Sales Comparison Approach involves comparing Property with other similar ones recently sold around that area; Income Approach looks at how much income can be generated from the property while Cost Approach estimates cost to rebuild it.
Valuation Process:
At first, information about a property such as its location, site area, facilities and damages is collected during its valuation (Dubai Land Department 2017). Then data is analyzed by the appraiser who applies relevant method of appraisal to know how much it may cost on the current market. Subsequently evaluation report is prepared and submitted to a client.
Factors Affecting Property Value:
The worth or value of homes might be affected by several things including location among others which include size facilities state age trends in the real estate markets plus economic conditions facing a country concerned (De Marco 2008). Thus prime properties located in areas where land is scarce fetch higher prices while those situated at less attractive locations could have lower values.
Importance of Professional Valuation:
Hiring a professional licensed valuer is essential when carrying out property valuation in Dubai (Dubai Land Department 2017). A certified valuer is familiar with market facts and industry standards that enable him or her to establish the correct worth of a property. By obtaining professional evaluation, sellers and purchasers are able to make informed choices hence avoiding overprices and underpriced properties.
In summary, understanding how purpose, methods, process, factors and importance of professional valuation will help buyers and sellers in navigating the real estate market well informed.
