If you wish to get your hands on the ideal property in Dubai or you wish to sell real estate with the highest profits, then you need to know about the property valuation process. This helps you figure out exactly how much a certain property is worth, which ensures you avoid financial loss.
The year 2021 saw a surge in the total value of transactions, which amounted to about AED 150.6 billion (equivalent to EUR 36.1 billion), a significant increase of 109% compared to the previous year’s figure of AED 72 billion (equivalent to EUR 17.3 billion). The most successful sales month was November 2021, followed by December and September.
Based on the changing state of the Dubai real estate market, right now is the best time to invest in the UAE property market. Before investing in property in Dubai, you need to know the process of real estate valuation. This is wha we are going to explore in this article.
What is Real Estate Valuation in Dubai?
Property valuation in UAE is a process where a real estate expert determines the right market value of a property.
They use certain tools and techniques to analyze things like the current state, location, features, interior, and exterior of the house. After that, they use various property valuation methods to come up with the best price.
The most common property valuation approach in Dubai is CMA or the comparative market analysis. This process involves looking at the recent sales of similar properties in the area.
Some other valuation methods include Desktop Valuation and Rental Yield Valuation. In rental yield, the percentage of the property’s value that you can get back in rent is determined.
The desktop valuation involves using tax records and multiple listing services information to determine the price of property instead of an in-person visit to the location.
Why is Property Valuation Important in Dubai?
There are many reasons why it is important to get a property value. For starters, it lets you know how much a property is worth. This means it will enable you to avoid making risky or wrong investment decisions.
Real estate valuation helps you determine the worth of your property and shows you the steps you need to take to increase its selling price. It also helps both buyers, as well as sellers, conduct better negotiations.
Having an independent valuation allows you to keep your emotions aside and reach a rational and objective decision while making an important real estate investment.
Benefits of Getting Property Valuation in the Dubai Real Estate Market
The valuation of your property comes with many advantages. It helps you sell your property much faster and at the right market value. Sometimes when asking for refinancing your mortgage, banks require a property valuation, which enables you to become financially stable.
You can get loans with much better interest rates if you have your property valued by an expert.
The tax you must pay also depends upon your property’s value. Thus, a property valuation helps you determine how much tax you must pay.
A property valuation also helps you determine the correct value of your property, specifically for insurance purposes. You can also make better calls regarding investment if you pay attention to property valuation.
Factors That Affect the Property Valuation
Various factors can affect the valuation of a property. Knowing these factors, you can easily make sure you get the best possible deal.
Local Property Market and Economic Conditions
The state of the country’s economy and market trends have a direct impact on a property’s value. Since Dubai is a highly developed state that is financially stable, the real estate prices are naturally high.
Location in Dubai Property Market
The location of a property is of great importance since this determines the residents’ quality of life. Properties closer to schools, hospitals, landmarks, etc., are much more expensive than those located in less exotic parts of Dubai.
Newer buildings are equipped with much better features and facilities, so they cost much higher. However, some older buildings with special history and heritage can cost more.
Both the age and the condition of a property are among the deciding factors when it comes to the value of a property; that is why they need to be addressed when conducting real estate valuation.
The size of a property is another main factor that can increase or decrease its value. Properties that come with more bedrooms, open spaces, bathrooms, and well-designed structures tend to be more expensive.
Useful Tips to Improve the Value of Your Dubai Property
If you wish to get more value for your property, you need to ensure it is in the best possible state. Here are some things that you can do before calling a property valuer:
- Pay attention to things like interior, exterior, paint, cracks, leakage, and drains.
- Declutter the space and arrange it to look bigger and more open.
- Add updated features to your kitchen and bathroom. Make sure there is consistent water flow, energy-saving lights, and secure electrical connections.
- Repair damages to the floors, wooden closets, windows, etc.
So, this is all you need to know about property valuation in Dubai. Focusing on this process can eliminate various roadblocks when making a real estate deal.
You can use the above information to approach the property valuation process properly, and increasing your real estate’s worth will help you get a more favorable deal.
Visit Land Sterling to learn more about property valuation and its benefits for property buyers and sellers in Dubai, UAE.