Estimating value of property considered biggest eligibility criterion for home financing

Parallel to the growth of the UAE’s realty sector is the growth of its home finance sector. Home financing is a crucial part of the realty market since property appraisal is the biggest eligibility criterion for it.

The financier, which is either a bank or a money lender, establishes the security value of the house to be purchased for the buyer to secure a home loan and for the property to serve as mortgage collateral. The lender’s objective is to obtain an estimated selling price of the house in the market in case an immediate sale deed takes place, like repossession.

The lender can assess the value of the property in two different ways. The financier can either send a surveyor to physically inspect the property, or use modern methods like online evaluation.

Online valuation is carried out by utilizing online data such as land registry, information on comparable properties in the area, house price indices and Google maps to arrive at a probable market value. Along with online data, a visual inspection of the property may also be performed. Online assessments work for simple residential properties only. However, for quantitative residential purchases or commercial property, physical assessment is the best approach.

The physical assessment of a house includes recording details like the number and type of rooms, the absence and presence of fixture and fittings, and changes required, among others. In addition, the location of the house, its accessibility to public transport, the availability of parking space or garage facilities, the condition or structure of the building or villa, structural faults, fit outs and local council zoning are significant factors in assessing a property.

Once all facts are accumulated, with the latest comparable sales figures in the neighboring area and current market rates, a comprehensive valuation report is prepared to determine the worth of the property.

Property valuation fees are part of the home loan process and can vary depending on the bank or lender, or it can be waived off.

Reference: Industry Insight – Gulf News Freehold

The city has many development projects that attract foreign investors an important stop on the global sea-air trade and commerce, within an eight-hour flight between Europe and Asia and hosting the 2020, Dubai has exhibited a tremendous transformation over the years.

Large-scale developments have spurred business and investment opportunities, putting the city in the global property market map. To provide city-wide accessibility and promote city as a top economic and tourist hub, developments in Dubai center on airports, transportation networks, canal projects and a lot more.

With an estimate cost of 6.45 billion euros, the Dubai Trade Centre Jebel Ali will be the venue of the Expo2020. It will have Al Wasl Plaza nestled among theme pavilions, entertainment venues, soaks and a housing village. In close quarters the Jebel Ali Port and the Al Maktoum International Airport which will spend Dh120 billion on expansion.

The proposed Dubai Metro 40 kilometer track expansion will add 23 new stations including Al Maktoum International Airport, Mirdif City Centre and a possibility to connect to the Meydan Station of the Etihad Rail. Also, the Dubai Tram, which is expected to start operation this month, will whisk passengers comfortably to the Dubai Metro and the Palm Monorail. Additionally, the RTA Sky Buses, which have large baggage Compartments and catering services on board, will ferry passengers from the Dubai International Airport to 26 hotels across the city.

The colossal Mall of the World will be the world’s first temperature controlled shopping complex. It will have a promenade lined with retail shops, an indoor family theme park and wellness resorts. The Dubai Water Canal project will provide various points with a link to the Arabian Gulf. It will feature footbridges, walkways, hotels, restaurants, shopping centers and marine transit stations for water taxis. Dubai holds a formidable record of development projects. No wonder it takes the lead in attracting investors to the country.

Reference: Industry Insight – Gulf News Freehold