The property valuations market in the UAE is growing along with the real estate sector, according to a leading property expert.
Property valuations have been a fair measurement tool that is used to determine the unbiased price of a property. This process assists both the seller and the buyer to arrive at a price that is neither over nor under priced, stated Chestertons, the international property agency established in 1805.
Valuation is also required for mortgage transactions both in retail and corporate banking, it added.
Chestertons is currently supporting 36 leading banks across the region for property appraisals.
“Property valuations and the real estate sector are linked together. The growth in the real estate sector has propelled the property valuations market to the next level. We are seeing a lot of interests for valuations from both local and overseas investors with regard to UAE-based properties,” explained Robin Teh, the country manager & director of valuations & advisory – Chestertons Mena.
Valuations are vital for the industry here as it facilitates transparency and generates the right value based on actual market dynamics. Valuations are carried out for various purposes including accounting, financial use, transactional, mortgage lending, investments and court arbitrations, said the expert.
“Valuations undertaken by a reputed third party independent company aids investors across the globe to understand the market and also in case of disputes assist them with support according to the international accounting guidelines,” he added.
Chestertons abides by the Royal Institute of Chartered Surveyors, UK valuation guidelines and conducts valuations based on a fair market value which are unbiased and based on current market trends and transactions.
“Property appraisal today has become a vital part of the home loan application process in the UAE. It helps to determine the security value of a property being offered to secure a home loan,” stated Robin.
“The appraisal process is required when an investor borrows money to buy a new property, or while refinancing. Similarly, when our team of expert surveyors carry out first-hand physical inspections, facts are accumulated to consolidate and give credibility to the property appraisal reports,” he added.
Robin pointed out that to assess a property’s value, the company needs to measure the property, record details on the number and type of rooms, along with fixtures, fittings and any modifications or improvements.
Chestertons Mena, he said, has developed a team of proficient surveyors who specialize in property appraisals.
With a network of 74 offices across the UK and international offices in eleven countries and five continents, Chestertons is looking to cement its position as the leading international consultancy partner for property, vehicle and equipment appraisals in the Middle East and Asia.
“A property’s unique attributes should also be taken into consideration, such as the location, building structure and its condition, building/structural faults, standard of presentation and fit-out, access, good vehicle access and a garage, planning restrictions and local council zoning among other important aspects,” explained Robin.
“We need to then combine these attributes together with recent comparable sales in the surrounding area and prevailing market conditions to produce a comprehensive valuation report,” he added.