Bank Valued Your Dubai Property Below the Agreed Price? What to Do Next

Last updated: October 26, 2026 · Reviewed by Hamza Betraoui MRICS, Partner and Board Member, Land Sterling

If your bank’s valuation has come in below the price you agreed, the bank will lend against its own figure, not the price. The gap is yours to cover, renegotiate or walk away from. Most buyers have four options: ask the bank to review, use an independent valuation to renegotiate with the seller, increase the deposit, or apply to a different bank. This article explains what a down-valuation means and how to decide, with input from the residential property valuation team at Land Sterling.

Why did the bank value my property below the price?

A bank valuation is not an estimate of what you are willing to pay. The bank appoints a valuer from its own panel, and the valuer reports the market value on the valuation date using recent registered transactions for comparable units. The price you negotiated may sit above that evidence for several reasons:

• Listing prices and sale prices differ. Asking prices in a building can run ahead of what units actually sold for. The valuer works from registered transactions, not listings.
• The market has moved since the comparables sold. In a fast market, the latest registered sales can lag the prices being agreed today.
• The unit has features the comparables lack. A higher floor, a view or a renovation adds to the price buyers pay, but the valuer can only adjust for it with evidence.
• Few comparables exist. Recently handed-over buildings and unusual units give the valuer little to work with, so the figure is cautious.
• The valuation basis is conservative. Lenders ask for a figure they can rely on if they ever have to sell the property, which is not the same as the highest price a buyer might pay.

None of this means the valuer is wrong or the seller is dishonest. It means two different questions are being answered: what the evidence supports, and what you agreed.

What does a down-valuation do to my mortgage?

The bank lends a percentage of the lower of the purchase price and its valuation. For example (illustrative figures only), if you agreed AED 2,000,000 and the bank values the property at AED 1,850,000, the loan is calculated on AED 1,850,000. The difference between the price and the valuation has to come from you, on top of the deposit you had planned.

The sale and purchase agreement still binds you to the agreed price, so a down-valuation does not change what you owe the seller unless the seller agrees.

Option 1: Ask the bank whether it will review the valuation

Some banks will look again if you give them evidence the valuer may not have had: recent registered sales in the same building, details of upgrades, or a correction to the unit size or specification. Ask your mortgage adviser or the bank directly whether a review is possible and what they need. Be realistic: the bank will not move to your price just because you ask.

Option 2: Commission an independent valuation and renegotiate

An independent valuation from a RICS regulated firm gives you a signed report with the comparables, adjustments and method set out. It does two things.

First, it tells you whether the bank’s figure is reasonable. If an independent valuer, working from the same registered data, arrives close to the bank’s number, the price was high and you should renegotiate hard or walk away.

Second, it gives you something to put in front of the seller. “The bank says it is worth less” is an opinion the seller can dismiss. A report prepared to the RICS Red Book, with the evidence attached, is harder to argue with. Sellers who want to close often meet buyers part of the way when the evidence is on the table.

The bank will still lend on its own panel figure. The independent report does not replace the bank valuation; it supports your negotiation and your decision.

Option 3: Cover the gap with a larger deposit

If you want the property and can fund the difference, you can proceed at the agreed price with a smaller loan. Before you do, make sure you are comfortable paying above the evidence. A down-valuation is also a signal about resale: if you need to sell in the next few years, the next buyer’s bank will value it the same way.

Option 4: Apply to another bank

Each bank uses its own panel, and two valuers can reach different figures on the same unit, within a range. Reapplying costs time and a second valuation fee, and the second figure may be no better. It is worth trying only when the first valuation looks like an outlier against the registered sales you can see.

How to decide

1. Get the comparables. Ask the bank which transactions its valuer used, and compare them with recent registered sales in the building.
2. If the valuation looks fair, renegotiate the price or walk away. Paying above the evidence is a decision, not a necessity.
3. If the valuation looks low against the evidence, ask the bank for a review and consider an independent valuation to support it.
4. Check your sale and purchase agreement for the finance condition and the date by which you must complete, so you know how much time you have.

What an independent valuation from Land Sterling includes

Land Sterling is a RICS regulated valuation company, accredited and registered with the Dubai Land Department, and a panel valuer for leading UAE banks. A residential report sets out the market value and valuation date, the purpose and basis of value, the comparable transactions used with adjustments, inspection notes, assumptions and limitations, and the valuer’s name and signature. A standard residential report typically takes 1 to 2 working days. Fees are quoted per instruction and confirmed in writing before the inspection.

Frequently Asked Questions

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