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How to Do Property Valuation in Dubai

Adil Raza Khan | March 29, 2025

How to Do Property Valuation in Dubai

For investors, buyers, and sellers, knowing the value of a property is important to make smart decisions. This can also help people to determine their potential profits, setting up the right rental prices, and negotiating deals.Luckily, there are several ways to calculate the property valuation in Dubai and even platforms to get the accurate valuation.

Let’s get to know these property valuation approaches.

Market Approach

This is the most common and straightforward approach. You can start by analyzing the neighborhood where your property is located and find recently sold or listed properties. These properties must have similar features to your own, such as, amenities, size, condition, and age. Moreover, these ‘similar’ properties will directly tell you the estimated value of your own property. This is a great approach because you can access a lot of market data on the internet.


For example, apartments in Palm Jumeirah have more market value than villas in the same community. 

Income Approach

The income approach is ideal for properties that have high generating income, like rental properties. This is how you calculate the property valuation in Dubai using this approach:


  • Calculate the net operating income which is the gross income of a property minus the operating costs (e.g., property taxes, insurance, property management fees, maintenance fees).
  • Calculate the capitalization rate, which is the expected rate of return on investment.
  • Finally, divide the NOI by the capitalization rate, and that is your estimated property valuation Dubai.
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Investment Method

This method is similar to the income approach but focuses more on the potential income a property could generate over time. Generally, you can calculate the property valuation through the overall rental income and capitalization factor tied to the expected annual return. Properties with greater value ultimately indicate higher rental rates with fewer service costs.

Profit Method

This method is generally used for commercial properties where businesses profitability is tied to the property’s value. Think of places like hotels, golf courses, cinemas, and more.This is used to calculate the net profit to determine the true profitability of a business. This is how it’s done:


  • Calculate the gross profit by taking the total revenue of the business minus its purchases.
  • Take note of the working expenses within the company.
  • Finally, take your gross profit and subtract it from your working expenses to get the net profit.

Cost Approach

This method is usually reserved for special-purpose properties such as places of worship or government buildings. Typically, you can’t find any properties for sale to compare it with. 


Hence, it is not like the other approaches. For the cost method, it assumes that the property valuation is equal to the cost of rebuilding it from scratch minus any depreciation.

A person in a suit holds and points to a small house model

Other Ways to Get the Accurate Property Valuation in Dubai

There are three other ways that you can get the exact property valuation without doing it yourself and risking any mishaps.


Dubai Land Department (DLD)


The Dubai Land Department has its own property valuation services that you can access. To add, DLD follows strict guidelines to ensure an accurate property valuation in Dubai. 


You only need to submit some requirements, such as:

  • Photos of the property
  • Dubai Municipality plans
  • Copy of a judicial order to assess the rent of the property 


Online Valuation Tools


The internet is now brimming with online valuation tools to provide you with a quick estimate. The TruEstimate by Bayut is a great AI-powered tool that can assist you with calculating the value of your properties. 


All you need to do is enter specific property details, such as:

  • Property type (e.g., apartment, townhouse, villa)
  • Number of bedrooms and bathrooms
  • Location of the property
  • Size of the property
  • Title Deed No.


Meanwhile, APIL Properties also have an ROI calculator that can give you an idea of how much returns you can expect from your property.

Licensed Valuation Firms

One of the most reliable methods is to hire companies that offer property valuation services. APIL Properties, for example, has in-depth knowledge of the Dubai real estate market. We can provide you with a detailed report about the value of your properties. Additionally, we conduct a thorough comparative marketing analysis to give you a fair estimate of the value of your properties.


We can even assist you with determining:

  • The asking prices for your property
  • Setting the right rental rate
  • Assist you with getting a mortgage
  • Calculate your taxes

Conclusion

In Dubai, it is important to understand how to calculate the value of your properties. You may use different methods from the market approach to the cost approach. You can also opt for a more accurate approach of using DLD services and online valuation tools. Additionally, for more reliable and trusted methods, hiring companies with property valuation services like APIL Properties is your best choice.


Our comprehensive services can give you accurate valuations and so much more. With our expert help, your investment decisions will be guided by our reliable valuation methods.

FAQs

What does property valuation mean?


Property valuation refers to the process of calculating the potential market value of a property. 


How can you calculate the value of property?


There are several ways to calculate property valuation. You can either take the market approach, income approach, investment method, profit method, and cost approach. You can also access DLD services, online valuation tools, and valuation firms.


What affects the valuation of properties in Dubai?


Some important aspects that influence the valuation of properties are their location, amenities, size, condition, age, and market demand.

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