Category: Guides

Property valuation is a critical step in any real estate transaction. Whether you’re buying, selling, or refinancing a property in Dubai, understanding its true value is essential. Property valuation ensures that you make informed decisions and avoid overpaying or underselling. In this guide, we’ll walk you through the key aspects of property valuation in Dubai.

Understanding Property Valuation:

Property valuation, also known as real estate appraisal, is the process of determining the current market value of a property. This value is based on various factors, including the property’s location, size, condition, age, and recent sales of comparable properties in the area. In Dubai, property valuation is typically carried out by certified valuers who have a deep understanding of the local real estate market.

Why is Property Valuation Important?

1. Buying or Selling: When buying a property, you want to ensure that you’re paying a fair price. On the other hand, if you’re selling, you want to set a competitive asking price. Valuation helps you achieve both objectives.
2. Financing: Lenders often require a property valuation before approving a mortgage or loan. They want to be sure that the property’s value justifies the amount being borrowed.
3. Investment Decisions: Property valuation is crucial for real estate investors. It helps them identify properties with the potential for capital appreciation and rental income.

The Property Valuation Process:

1. Choose a Certified Valuer: In Dubai, property valuations must be conducted by certified valuers registered with the Dubai Land Department. Choose a reputable valuer with local market expertise.
2. Inspection: The valuer will visit the property to assess its condition, size, layout, and features. They’ll also consider the property’s location and any unique characteristics that might affect its value.
3. Comparative Analysis: The valuer will compare the property to recently sold properties (comparables or “comps”) in the same area. This analysis helps determine the property’s market value.
4. Market Trends: Valuers take into account current market conditions, trends, and economic factors that may impact property values.
5. Valuation Report: After the assessment, the valuer prepares a comprehensive report detailing their findings and the property’s estimated value.

Challenges in Dubai Property Valuation:

Dubai’s real estate market is known for its dynamic nature, which can make property valuation challenging. Factors such as changing market trends, oversupply or undersupply, and economic fluctuations can impact property values. Therefore, it’s crucial to rely on certified valuers who stay updated with market changes.

Tips for Property Owners:

• Regular Maintenance: Keeping your property in good condition can positively influence its valuation.
• Research Comparable Sales: Be aware of recent sales of similar properties in your area to get an idea of market prices.
• Consult with Valuers: If you’re planning to sell or refinance, consider consulting a valuer in advance to understand your property’s current value.

Property valuation in Dubai is a meticulous process that requires expertise and knowledge of the local real estate market. Whether you’re a buyer, seller, or investor, understanding the value of a property is crucial for making informed decisions. By working with certified valuers and staying informed about market trends, you can navigate Dubai’s real estate market with confidence and make sound financial choices.

The landlord has the right to increase the rent but he should do so no less than 90 days prior to the date on which the tenancy contract expires. Otherwise, he doesn’t have the right to oblige the tenant to accept the new rental nor does he have the right to evict the tenant from the tenancy.

This is stipulated in Articles 13 and 14 of Law No. (33) of 2008 Amending Law No. (26) of ‘2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai’ which state: For the purposes of renewing the tenancy contract, the landlord and tenant may, prior to the expiry of the tenancy contract, amend any of the terms of the tenancy contract or review the rent, whether increasing or decreasing it.

What is an Exclusive Listing?

There are a number of ways to sell a property, but which one is the best? It depends on the situation and who you ask, of course. But there are some distinct advantages to choosing an exclusive agency listing. What is an exclusive agency listing? It’s an agreement made between a real estate broker and the property seller. In the agreement, the seller grants the real estate firm the right to be the only firm with the exclusive right to sell the property.

Yes, you will sign an exclusive agency agreement and pay a commission to the real estate agent once the property is sold, but it has many advantages. The National Association of Realtors reports that only about a quarter of people who try to sell their home or property on their own actually succeed in doing so. Your broker has both experience and a wide array of resources at their disposal to help you.

While this agreement may sound restrictive, it’s actually greatly beneficial and here are seven reasons why:

1) Loyalty between you and your broker: Brokers have a duty of loyalty to their clients who have engaged them to market their To take time away from Listing clients to spend time on unlisted property is doing a disservice to those who have hired IRC as their listing broker.

2) Your broker can spend more time on your property: With an Exclusive Listing, your broker can afford to put more time and effort into understanding your property. As this is a commission business, brokers spend a great deal of unpaid time developing information on a property and market area. Without an exclusive listing, the broker knows that another broker may go around him to the seller directly, cutting him out of the commission. This makes it unwise to spend time putting together information on an unlisted property and presenting it

3) Thorough information in your agency listing saves time for property buyers and their agents: When your property is listed with a capable broker who has spent hours delving into the characteristics of the property and the desires of the seller and then building a thorough information package, it saves the Buyer’s agent a great deal of time. It also conveys confidence that the information is accurate and reliable.

4) Increases the chance that your property will be seen: Buyer’s agents must be cautious of their time, The Buyer’s agent may be gathering information on many properties to present to his client. He often will not take the time on an unlisted property, because of the information he needs is not readily available.An Exclusive Listing Agreement gives real estate agencies the control and confidence that are required to openly and systematically approach their best prospects – those who are the most qualified for buying your specific property.In Open Listing cases real estate agencies usually do one of two things:

• they keep the property details closely – kinda pocket listing
• they will instinctively broadcast your property information to as many (mostly unqualified) prospects as possible.

In either case, the information about your property is often incomplete or inaccurate. As a result, your property is improperly presented to the wrong prospects. Even if, by luck, you property is presented to qualified Prospects, these qualified buyers get the wrong information. It’s clear that in most cases no offer is possible and no transaction is completed.

5) Offers assurance for the agent who represents the seller: A Listing Agreement specifies that the seller will pay a commission. Without a written agreement, the broker has only the verbal assurance of the seller that he will be paid at closing. As the Broker will have upfront expenses of listing the property, preparing the offering information package, signage, etc., they will already have considerable expenses and need to have an agreement they will be paid if the transaction is successful.

6) Ensures cooperation on all sides: A broker is rarely so greedy that he refuses to work with other No question these brokers are in the business, but there are very few, and all of the other brokers know to avoid them if possible.

7) Professional marketing of your property: An exclusive agency listing means that you get a thorough market analysis of your property and the surrounding area to determine the best strategy for maximizing your profit. Your listing agent will not only utilize this tool but also analyze the highest and best use of the property to determine the best marketing

8) With an Exclusive Listing, a real estate broker spends more time to get pick the best prospects. As a result, the agent can get you can get the “best offer” the first time – pretty close to your prime goals, isn’t it?In addition, this tends to eliminate much of the long negotiation process that usually includes many offers, counter-offers, counter-counter-offers, and so on – ending up with “no sale anyway”. An exclusive agreement to sell the property enables a real estate broker to take his or her time and to structure truly worthwhile offers from buyers to you.

In summary, there are many advantages that an Exclusive Agency Listing provides you. Your broker will use every marketing tool and strategy available to sell your property successfully. Broker’s not only spend a great deal of time on your listing but all of the high tech resources are very expensive and even low tech signage costs hundreds of dollars

As the global property market begins to normalize, estate agents’ network Luxury Portfolio International identifies some of the best places to invest in this year.

After spending so much time cooped up at home, it’s hardly surprising that people are heeding the call of new horizons, whether it is the prospect of relaxing on a beach, gazing across majestic mountain vistas or enjoying the thrills of London, New York and LA.

Luxury property buyers are taking a serious look at the top international locations to invest in 2022.

Based on a study of more than 4,500 wealthy property owners and investors, The State of Luxury Real Estate, by global estate agents’ network Luxury Portfolio International (LPI), found that ‘buyer demands have not changed on the basics: location, quality, and well-run, family friendly places to live’.

Remote working and Covid-related lifestyle changes continue to influence the buying process, but people ‘are not, in general, making hasty decisions like they may have a year ago’.

Many are motivated by the desire to transition financial gains to real property assets as investments, others by their wish for a better place to live, a better location or a house that better meets their changing needs.

There is, however, a surprising ‘fear of missing out’ at the moment, fuelled by concerns over the potential rise in interest rates or house prices. Partly because of this, many buyers have an imminent time-frame — they want to invest in international property within this year, leading researchers to predict growth across all regions and particularly in Europe and Asia.

Interestingly, despite the rise in remote working and technology making distance less material, a little more than half of the buyers are looking to invest in city locations and more than three quarters are looking to be within commuting range of one — particularly those hailing from the Asia- Pacific region. With this in mind, here’s LPI’s pick of where to invest in international property in 2022.

Where to invest in international property across the world in 2022

1. Berlin, Germany

Over the past four decades, Berlin has transformed: the grim grey atmosphere of the Communist era is a faded memory and the city has become a cosmopolitan hub with a vibrant culture and an equally buzzy nightlife, which draws hip, young designers and savvy tech entrepreneurs alike. Europe should see some of the highest property prices increases this year and Berlin is expected to lead the pack. The German city has been relatively under-priced when compared to its economic performance until now and the gap with other European powerhouses should begin to narrow in 2022.

2. Seoul, South Korea

Ten years ago, the South Korean capital’s affluent, trendy Gangnam district, with its swanky boutiques and fabulous restaurants, became a household name worldwide thanks to K-pop singer Psy, who immortalised it in a song and video. Now its fame is compounded by the investment appeal of its

properties, whose market had a very positive year in 2021. With luxury homes few and far between, the trend is expected to continue in 2022.

3.  London, UK

Whether it’s the theatres, the art galleries, the world-class food, some of the world’s most exciting new buildings or the traditional appeal of the change of the guard at Buckingham Palace, London has it all. Which is probably why the much touted demise of the British capital, announced on the back of the rise in remote working, has proven unfounded and the city looks set to bounce back this year, especially now that international buyers are making their return.

4.  Singapore

With a number of millionaires that defies its diminutive size, Singapore feels like one of the buzziest, busiest cities on earth—the perfect place to live for those who want to be at the pulsating heart of the global economy. The property market is generally robust in a country where people abound and space is scarce, and Singapore saw good growth last year, with more expected in 2022.

5.  Milan, Italy

Milan is imbued with style — after all, it’s Italy’s capital of fashion — and this extends to its magnificent buildings, which are a mix of the very ancient (the 1,600-year-old Basilica di Sant’Ambrogio) and the cutting-edge contemporary (Boeri Studio’s Vertical Forest towers, one of Europe’s largest and most spectacular regeneration projects). But the city is also Italy’s financial capital and its property market has awoken from the Covid slumber, with strong growth expected for 2022.

6.  Madrid, Spain

Spain’s capital is often overshadowed by Barcelona, but undeservedly so. The architecture is majestic, the food is fabulous and El Prado and Reina Sofia museums are two of the world’s best (think Goya for the former and Picasso for the latter). The home of Spain’s Royal Palace saw some steady price rises last year, with more expected in 2022.

7.  New York City, New York

Never bet against the appeal of the Big Apple, whether it’s because of the mellow brownstones, the soaring skyscrapers, the dizzying concentration of some of the world’s best restaurants, galleries, museums and bars or the stately Hudson. Like London, New York was expected to be on the way down as people left it during the early days of Covid for pastures greener and more spacious. But the tide has turned, buyers have returned and property prices have followed suit, with lively growth forecast for 2022.

8.  Los Angeles, California

It has Hollywood, the golden beaches, great weather, sweeping views and even vampire tours. Now, further adding to LA’s appeal are rock-solid property prices, which saw a year of unbridled growth in 2021, fuelled in part by the reduction in Covid restrictions. Expectations for 2022 remain rosy.

9.  Dubai, United Arab Emirates

More is more in Dubai, a city known for its unabashed opulence. After all, where else would you find a state-of-the-art sky slope despite the blazing heat or a lush garden in the middle of the desert? And now the local property market is even hotter than the weather.

Bolstered by strong capital growth, high yields and government-led initiatives that incentivises investment in the property sector, Dubai continued to be a prime target for investors.

All segments of Dubai’s real estate market recorded growth in the first half of 2022 with sales transactions and values holding up well,

Despite headwinds in the form of rising interest rates and a strengthening dollar, Dubai’s real estate market remained busy and robust in the first half of 2022.

Indians topped the list leading buyers by nationality with those from the UK, Italy, Russia and France rounding the top five, according to the report.

10.  Sydney, Australia

The harbour, the Opera House, the sunset cruises — what’s not to like about Sydney? Property buyers worldwide have woken up to the appeal of the Australian city, which performed solidly in 2021. Prices look set to continue rising this year.