Property Valuation Dubai: What’s My Home Actually Worth?

Whether you’re thinking of selling or buying a home, one burning question must first be answered: “How much is the property really worth?”

As a seller, knowing your property’s approximate market value gives you confidence that when you list it for sale, you’re not leaving money on the table. For example, if you list a property at AED 2,000,000, but the market and price trends suggest it could be sold for AED 2,100,000, you would have lost out on AED 100,000. Similarly, knowing the market value can prevent you from overpricing your listing, causing it to sit unsold on the market for an extended period, which can be equally painful.

As a buyer, knowing the market value of a property not only helps you make the right offer, but it also may be a financial necessity to execute the purchase.

Obtaining the right information is essential to make sure you’re listing or buying at the right price. Let’s break down the most common ways real estate owners and buyers uncover the value of property in Dubai.

Online Valuation Tools

With use of real estate technology, i.e. “proptech,” dramatically increasing across the world over the past decade, homeowners and prospective buyers now have access to property valuation tools at their fingertips. Proptech in Dubai is no different.

Most online property valuation tools, known as Automated Valuation Models (AVMs) are free to use and analyze a number of factors to determine an estimated market price of a property. Such factors include location (e.g. neighborhood, building name), general metrics (e.g. square footage, lot size, property type, number of beds & baths), market trends (e.g. recent comparable sales, number of comparable active market listings), and macroeconomic variables (e.g. expected population growth, unemployment rates).

The tools then use their own algorithm and statistical models to provide users a price estimate, and often provide supporting details in the form of a report.

If you have 5 minutes and you’re curious about your property’s market value, you can try Driven Properties’ free instant valuation tool here.

Appraisals

Appraisals are a comprehensive approach to pricing a residential, commercial or industrial property. The cost for a standard residential property appraisal usually starts at about AED 2,500.

Typically done by certified experts such as those with a “Registered Valuer” or “Chartered Surveyor” designation offered by the Royal Institution of Chartered Surveyors (RICS), property appraisals are a requirement for buying real estate via a mortgage in Dubai. They can also be used for obtaining property insurance and other financial purposes.

Like other approaches, appraisals consider variables such as location, property size, amenities, property type, similar properties sold, etc. An appraiser will produce a detailed report outlining the estimated market price, methods used, and factors considered.

Comparative Market Analysis (CMA)

A comparative market analysis is commonly done by a certified real estate agent or broker at no cost upon request from a serious seller or prospective buyer. Like an appraisal, a CMA typically considers elements such as property size, type, location, amenities, and market outlook.

The output is generally considered a step up from what you’d receive from an online valuation tool alone, because it considers not just the output of an algorithm, but also the broker’s expertise and market knowledge of a particular area. Indeed, many brokers start the CMS process by using an online tool and then adjust the estimate based on their expertise. A CMA is a less formal output than that of an appraisal, but it’s generally provided by a broker at no cost.

Government Data

If you’re willing to do a little legwork on your own, Dubai Land Department (DLD), a government entity that supervises, controls, and ensures development in the real estate sector of Dubai, offers free real-time data on recent sales prices and transaction volumes by location. Armed with the most recent sales prices in an area, you can make some educated guesses as to the value of a property.

You can search and explore available DLD data here on our Insights page.

Talking to Neighbors

Last, but not least, if you want to understand pricing in a certain neighborhood or building, it never hurts to hang out at a local coffee shop or park, and strike up a conversation with local residents. Asking non-invasive questions like “How’s the property market been in the area lately?” or “What’s the going rate for a 3 bedroom villa here?,” is a great way to get an understanding of property values and trends in an area.

Summary

With all the property valuation resources available to Dubai residents these days, it’s very easy to find out the approximate value of real estate. Whether you choose to use an online valuation tool, property appraisal, CMA, government data, or even a cup of coffee with a stranger, you’ll be in a better position to start your buying or selling journey on the right foot.