In the dynamic realm of property valuation in Dubai, understanding the intricacies of the process can be a formidable task. However, you can significantly streamline the complexities involved by prioritising the key considerations mentioned above. Whether you're a seasoned property owner or someone new to the valuation world, these insights aim to make the process more accessible.
Residential values in Dubai experienced a 5.6% increase in the first quarter of 2023, marking the ninth consecutive quarter of price growth. This latest surge brings values to a point 20% higher than those in the first quarter of 2020. However, average prices still remain 15% below the peak observed in 2014. On an annualized basis, prices have risen by 13%.
During Q1, apartment prices rose by 5.7% to reach approximately AED 1,230 per square foot. These values are now 15% higher than those recorded in Q1 2020. Despite a 12% increase over the past 12 months, apartment prices continue to lag behind the peak observed in 2014 by 18%.
Villas have consistently outperformed the overall market, experiencing a 5.1% average value growth between January and March, reaching AED 1,450 per square foot. This leaves villa values 15% higher than in Q1 2022. The impact of Covid-19 has contributed to a substantial 44% increase in average villa prices across Dubai since January 2020. This growth is largely attributed to sustained strong demand for luxury second homes from the international elite. Notably, this significant level of growth has propelled villa prices to surpass the market peak observed in 2014.
Determining the value of your property is a critical step when entering the real estate market. While it may not provide:
An exact valuation.
Considering these factors can offer a close estimate.
Giving you a rough idea of what to anticipate from the sale.
For those less familiar with property valuation, let's explore the essential points to guide you through the process.
"Property valuation is the process of determining the economic value of real estate, seeking to establish fair market value—the price at which a knowledgeable seller and buyer would willingly engage."
Here are some key aspects to consider that will simplify the property valuation process:
Consider the Local Area: Remember the influence of the local area and its current property rates. Property values in urban and rural settings differ, making it crucial to factor in the locality when evaluating.
Size of the Property: Contrary to the belief that a more extensive property guarantees a higher value, valuation depends on factors such as the number of rooms, overall maintenance, and buyer requirements. Avoid misconceptions and focus on these critical elements.
Choose an Estate Agent: While some view hiring an estate agent as unnecessary, these professionals play a pivotal role in guiding you through the valuation process. Their insights, from value-diminishing factors to maintenance suggestions, can prove invaluable.
Recent Sales in the Area: Examine recent property sales in the area where your property is situated. Various factors influence sales, impacting your property's value. Understanding these dynamics can provide valuable insights into the valuation process.
Standard of Presentation: The presentation is key. Ensure your house is well-maintained, clutter-free, and presents a positive first impression to potential buyers. A well-presented property can leave a lasting impact.
Areas of Improvement: Identify and address areas of improvement within your property. Enhancing can significantly increase its value, making it more appealing to potential buyers.
Exterior of the House: Don't overlook the exterior. While interior aspects are crucial, a well-maintained exterior, including gardens and lawns, contributes significantly to your property's overall appeal and value.
In conclusion, while property valuation may seem daunting, incorporating these essential tips can simplify the process to a considerable extent. For trusted valuation services in Dubai, consider partnering with Credence & Co., a leading valuation company equipped with the expertise and knowledge to meet your needs.
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