How Does Property Valuation Work

Understanding the basic methods of determining the value of a property can let you earn more and save you a lot of headaches. So, how can you be sure that the price of a property represents the market value? First, as a landlord, you have to be aware of the market trends from reliable sources. Secondly, find a property expert who’ll be your reliable partner throughout the whole process.

Real Estate professionals provide a property valuation service which will help you determine the value and price of a real estate in Dubai based on different factors such as:

·         Location – Being close to commercial establishments such as schools, shopping malls, prominent landmarks, hospitals and public transportation initially dictates the value of a community and properties available within

·         Age – Land appreciates in value, but not the structure standing on it. Generally speaking, the older a structure is, the more maintenance it requires, hence, lessens the value

·         Space – Size matters in real estate. The bigger, the better

·         Facilities and structure – Luxury finishes, available amenities such as gym, pool, upgraded bathroom/ kitchen, branded appliances or even art collections that come with the sale of the property adds value to the property

Getting familiar with these factors will give you a better idea to increase the value of houses for sale in Dubai or any property.

Location, size and age may be out of your control but you can always improve the look and feel of your property to make it more valuable. A small- to full-scale renovation can add value to your property or developing vacant spaces would also give more value to your real estate. Research on popular interior design trends will be a big help.

In the UAE, there are different methods that a professional real estate valuer uses to determine your property’s value. Here are the four most common methods:

1.    Investment method – the valuer would focus on how the property could generate income.

2.    Comparable method – the valuer would compare the property to other existing properties to determine its value

3.    Residual method – the valuer considers future development within and in the surrounding area

4.    Profits method – this is a more advanced and specialised method which a valuer uses. It considers specific businesses that could be built within the property and how it generates a trading profit.

While the UAE real estate market has seen a stable and steady increase in value, the opposite can also happen. Thus, property owners should always be updated with current and future real estate trends, determine its situation today, and how it can change a few years from now.

This is just a quick overview of how property valuation works, so professional help is still your next big step if you plan to lease or sell your property.

Rocky Real Estate, one of the best real estate companies in Dubai has been in the real estate industry for more than 40 years now and offers exceptional property valuation service. Give them a call today and see how they can help you with your investments!