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Property valuation in Dubai can be a challenging and stressful process. The most significant point about purchasing or selling a property is its correct valuation.
Purchasing or selling a residential or commercial property in Dubai can be difficult, particularly for those people who are inexperienced in the local real estate market. To take full advantage of your property transaction, knowing the latest information about property valuation in Dubai is essential.
The buyers and sellers must take property valuation in Dubai seriously since property valuation equips you with better negotiation power that can result in better deals.
Here you can find all the necessary information concerning property valuation in Dubai. This data will help you make informed decisions while selling your property or purchasing a new building or office.
What is a property valuation?
As the name suggests, property valuation refers to a process where a property expert determines the price of a property after taking into consideration different factors. Property valuation can be beneficial both for purchasers and sellers.
The most important point about property valuation is to take into consideration issues such as location, facilities, accessible amenities inside the house, age and condition of the property, and the existing market trends to determine the most suitable price that guarantees more profit for the purchasers or sellers.
Property valuation in Dubai is a very valuable process since it can help you get rid of worries and concerns and give you the confidence that you are finalizing the best possible deal.
Why property valuation is necessary?
Conducting a property valuation is highly significant. If you are a purchaser, then you must ensure the building you purchase has a good location and all the necessary facilities are nearby. Without a property valuation, you cannot know certainly that you are finalizing the best deal.
Sellers must also conduct property valuation so that they can find the most precise price according to the existing market state. This deters them from selling their property for less than its real price.
Hence, a property valuation can help both sellers and buyers to identify the best properties that meet their needs and are worthwhile.
Different ways of property valuation in Dubai
There are different ways to estimate the value of properties in Dubai including:
- Focus on online property valuation tools
- Receive market pricing trends reports
- Utilize the income method
- Utilize the profit method
- Use the cost approach
1.Focus on online property valuation tools
This is the easiest and fastest way that can be used for property valuation with the least mistakes. Anyone can use property valuation tools since they are easy to use. They are equipped with instructions and guidelines that navigate the users through each step of the valuation process.
2. Receive market pricing trends reports
This approach is based on the comparison strategy since you want to know the prices of properties that are similar to your property in the chosen area.
For instance, if you want to buy a house in a popular community in Dubai, the average price for this house is already determined. Now similar properties are likely to have the same price.
3. Utilize the income method
In this method, the price is determined by taking into account how much potential the property has for creating profits for the investor. You can use the profits method or the investment method to do this.
This approach helps you to identify a building that guarantees long-term financial security.
4. Utilize the profit method
In this approach, the price of the property is determined based on the trading potential of the business for which the property will be used. This method is commonly used in commercial property valuation which is situated in extremely busy areas of Dubai.
5. Use the cost approach
This approach is suitable for properties that do not have comparable prices and cannot be transacted in the open market under usual conditions. Houses of worship, government, and public properties belong to this category.
This approach enables you to set the most suitable price for these and similar buildings by taking into account the real cost of the building and comparing it with the cost of some other buildings that are constructed from the very beginning.
Factors that affect the property valuation in Dubai
Some factors impact the property valuation in Dubai, including:
- The local market and economic condition
- Location
- Property age and condition
- Property size
1.The local market and economic condition
One of the most significant factors that influence property valuation is the local market and the economic condition.
A country or a city that has a robust property market and a stable economy will have a high property value. That is the reason behind the high value of Dubai’s properties since it is an advanced city that has a stable economy and flourishing real estate market.
2. Location
The location of a property plays a significant factor in determining its price. For instance, properties whose locations provide easy access to schools, universities, hospitals, shopping centers, entertainment places, and public transportation have high prices.
3. Property age and condition
It is significant to know that the value of a newly built property is higher than that of one constructed years ago. Since the new buildings are equipped with modern and new features and need less upkeep, they have higher values.
The property’s condition is also a significant issue you should take into account while calculating the price of your property.
If the important features of a property, like the bathroom, kitchen, plumbing, electricity, and natural gas, are all in perfect condition, then the value of the property will rise since the expense of repairs from the purchaser’s side will decrease.
4. Property size
The size of your property is also a significant factor while calculating its value since bigger buildings can have higher prices than smaller ones. The number of bedrooms, bathrooms, and the floor plan all impact the value of a property.
Conclusion
An accurate valuation of your property will help you to avoid many possible problems. In addition, it might help you refrain from overpaying for or underestimating your property when you sell it.
Property valuation can save you money and time if you want to sell or purchase a property in Dubai.
