Real estate valuation determines the real value of a property based on its condition and market indicators.
A valuation includes:
- Property quality and condition of the land on which it is located;
- The value of real estate;
- Average rental rate;
- Market, investment, and cadastral value;
- Dynamic indicators.
The content of the article:
- Purpose of property valuation
- Documents needed for real estate valuation in Dubai
- Cost of evaluation
- Implementation procedure via DLD
- Services of third-party specialists
- Our services
Real estate valuation is the main factor that concludes sale and lease contracts in Dubai. It is necessary so that everyone can form their own opinion about the justifiable value of the property.
The valuation process includes:
- Providing land or property as collateral for a loan mandatorily requires a property valuation process. It is necessary to calculate the amount that the bank can ultimately recover if it is forced to withdraw the encumbered property in case if the borrower is unable to repay the loan.
- Valuation is necessary in situations where the current cadastral value of the property is contested. Typically, this value is required by state or local authorities to calculate taxes levied on the property in question. Determination of the cadastral value is also required when a new property is put into operation and its final boundaries are established.
- Valuation indicators are taken into account not only when concluding purchase and sale transactions between sellers and buyers, but also by developers when selling completed properties or properties under construction.
- Valuation is used in the dispute resolution process.
- A process is needed to analyze the investment in the project during the construction phase versus the property during the delivery phase.
In Dubai, you can make a real estate appraisal request via the official website of the Land Department (DLD) through a special form (Real Estate Valuation Form) or by using the services of specialists who work in partnership with real estate agencies.
Due to the pandemic, agents and specialists at the Dubai Land Department (Dubai Land Department — DLD) have transferred most of the real estate procedures to an online format.
The standard list of services provided in Dubai includes an assessment of:
- Vacant residential, commercial and industrial land;
- Villas and townhouses;
- Economic land;
- Commercial and industrial buildings;
- Projects under construction.
Clients who require the services of a real estate appraiser must collect the following documents:
- Completed real estate evaluation request form;
- A letter from the owner and a copy of his valid passport/ID Emirates;
- A copy of the municipality map or planning map (Ejari contracts).
Additional documents required depending on the type of property being assessed:
- Statement of no objection from the developer/bank
- Sales contract
The cost of a commercial real estate valuation includes:
- AED 2,000;
- Knowledge Fee – AED 10;
- Innovation Fee – AED 10;
- Cumulative life insurance – AED 1.
Valuation of residential property (residential real estate with a plot):
- AED 4,000.
Through a service center:
Step 1: Visit one of the real estate management centers;
Step 2: Submit the necessary documents to a specialist;
Step 3: The data is entered into the appraiser’s system;
Step 4: Payment of fees and receipt;
Step 5: After estimating the value of the property, the customer receives a property appraisal certificate electronically via e-mail.
Via Dubai REST (a platform for real estate transactions):
Step 1: Account registration and service selection;
Step 2: Filling in the data and uploading all the necessary documents;
Step 3: Payment of fees;
Step 4: Sending the application electronically;
Step 5: The interested employee receives, reviews and verifies the application;
Step 6: If the request is approved, the client will receive an email;
Step 7: After estimating the value of the property, the client receives a property appraisal certificate electronically via e-mail.
As a rule, real estate firms have their own staff so it is necessary to firstly get acquainted with the offered properties on the company’s website. Based on this, one can understand which areas and and developers this agent works with and focuses on.
It is important to understand that a detailed appraisal of real estate will not be accurate without working with official data on the market and properties owned by the DLD.
Before starting a cooperation with a third-party specialist, it is necessary to check whether they have an official license to provide these services.
Our company has experienced real estate specialists and contacts with leading companies and agents in the Dubai market. We provide our clients with complete property analyses and long-term market forecasting.
Our main focus is on residential properties: apartments, villas, townhouses in the main residential and resort areas of the emirate.
We will provide a detailed overview of the characteristics of the sector in each of these areas, the infrastructure and the market specifics, an analysis of demand, costs and taxes in the current and future period.
When we work with a property, we review:
- Property documents;
- Inspection data;
- Information on recent measurements of the property and land;
- A range of indicators of the condition of a residential property;
- Indicators of market performance and competitiveness.
Our methodology is transparent and we are always ready to provide the client with a complete overview and detailed interpretation of the property valuation.