Mohammed Ahmed Belgaizi, LD’s Director of the Technical Affairs Department and Head of the Real Estate Valuation Committee, said, “The Real Estate Appraisal Center and members of the valuation committee relied of the data and information collected from the LD records and were based on best international practices and transparency criteria.”
Belgaizi stressed on the importance of real estate valuation in achieving economic growth describing valuation as a practical tool to eliminate random pricing and reduce speculative practices.
The valuation is a main pillar in building a solid real estate sector and a helps in reorganizing and managing values. Valuation secures balance between supply and demand and has direct impact on resolving disputes. According to the reports, all areas of Dubai witnessed enhanced real estate values.
In the first half of 2012, the committee received 1090 valuation requests of properties worth Dhs42bn, while the valuation requests increased by 25% in second half to 1691 properties worth Dhs52bn. The evaluation was conducted following field visits to the concerned properties.
In 2012, the committee according to Belgaize held 91 meetings to review all valuation requests.
For his part, Mohammed Khodr Al-Dah, Head of Real Estate Appraisal Center said, “The Valuation Committee in cooperation with Real Estate Appraisal Center carries valuations after receiving requests from the owners or official entities. The valuation processes are neutral, objective, professional and reliable and are based on LD’s records and transparent international norms as stated in the Emirates Book of Valuation Standards. Owners can request amendment in the findings of the valuation report through clear and well organized grievance mechanisms.”
Real Estate Appraisal Center classifies property valuation according to the number of transactions, types of targeted properties (vacant plot, completed building). The purposes of the valuation range from sale, grant, bank, contract exit, investor visa, annual audit, Dubai Municipality, Courts, auctions, etc).
According to the annual report issued by the Real Estate Appraisal Center, 25% of valuation applications were submitted by Dubai Municipality, sale purposes represented 17% of the application, courts 12%, banks 11%, annual audit 8%, investor visa 5% and grants transactions dominated 7% of the valuation applications.
The average price of assessed commercial plots in Al Barsha 1 for example ranged between Dhs700-1200 per square foot (an increase of 2% in six months), while commercial plots in Al Nahda 2 were evaluated at Dhs450-600 per square foot (an increase of 35% in six months).
Vacant plots represented 62% of total valuated properties in first half and 47% in the second half of last year; while completed buildings represented 38% of valuated properties in first half and 53% in the second half of 2012.
The work of the Real Estate Appraisal Center endeavors to provide high-quality service for clients by offering a fair valuation which reflect market value, so clients can take well informed decisions when considering buying or selling properties.
The operations carried out by the center also enhance clients’ confidence in the Land Department and consolidates its position as the official real estate reference that safeguards and supports the interests of the relevant parties.
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