Dubai Property Value Drops In H1

The net value of properties assessed by the Dubai Land department during the first half of the year fell 26 per cent year-on-year to reach Dhs42 billion, while appraisal transactions dropped three per cent, official news agency WAM reported.

The Real Estate Appraisal Centre at the Dubai Land Department valuated 1,090 properties in the city, as requested by owners.

The reduction in the value of properties indicated market maturity, price stability and investor confidence in the emirate’s real estate market, said Mohammed Al Dah, head of the Centre.

Clients who needed a fair valuation of their properties for different purposes requested the valuation, he said.

While 30 per cent of the applications were from Dubai Municipality, 18 per cent were from Dubai Courts, 17 per cent were for the purpose of sale, 10 per cent were for banks, six per cent each were for grant, exit and investors’ visa, and one per cent was for auction.

In terms of the type of evaluation, vacant plots represented 62 per cent of the applications, while 38 per cent were completed buildings.

The Real Estate Appraisal Centre and members of the Real Estate Valuation Committee used data from the Land Department and field visits to complete the valuation process, the report added.