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The valuation committee, a part of the land department in Dubai, has completed its valuations on 691 properties during the first quarter of 2010. The properties which were valued at Dhs77,707.831,837.3bn were conducted due to owner’s request and were based on both current information in the LD’s records as well as developed criteria’s used in international systems worldwide.
“The valuation committee aims to provide clients with quality services that guarantee a fair valuation of their property in addition to emphasizing the department’s position as the official real estate reference in the market,” commented Mohammed Ahmed Belgaizi – Director of the technical affairs department and head of the valuations experts committee.
Belgaizi added that the land department does not conduct any valuations unless the owners or other government bodies have personally requested them, where the committee will meet twice a week to discuss the best methods to conduct such requests based on their nature.
Professionalism and international expertise utilization are KEY to the committee’s success.
Belgaizi stressed that in order to guarantee the fairest valuation of a property the committee is always prepared to seek out the expertise of professional architects, legal consultants or experts from internationally certified bodies.
Additionally, the department publishes both in printed media and on its website www.dubailand.gov.ae daily data about real estate transactions in the city in order to keep the market professionals and all those interested updated on the real estate prices and transactions as they occur.
3 main Tools to valuate real estate in Dubai
The committee receives valuation requests via a request form after which an assessment on the property or land is conducted using the 3 main tools ( income, comparisons, and costs). These tools are internationally accredited and used by professional bodies worldwide. First of all the current real estate will be compared to its counterparts in the same area secondly a cost assessment will be conducted through adding up the cost of the land to the cost of construction at the time of the valuation, and finally the income is assessed by calculating the expected income of the property according to the current rent values in the market.
Client’s knowledge of the valuation process is essential
Clients receive a complete report by the end of the assessment including details of the valuation process, this not only helps in clarifying reasons to clients but also make them aware of what are the necessary information needed from them , so in future valuation requests complete details will be provided for a faster valuation process. Belgaizi also highlighted that the committee updates its processes every year unlike other countries where updating takes place every 3 years.
In addition, the committee will issue the Emirates real estate valuation book very soon in which most developed methods of real estate valuation will be included.
Mohammed al Dah the head of the valuation center stated that the LD follows international standards in its valuation, that the information requested in the form has been developed based on those standards and that the main reasons for valuing real estate include sale, purchase, insurance and financing purposes.
He added that in its aim towards providing a real estate environment with international standards that will guarantee the rights of all concerned the LD has joined international organizations in the same profession such as ‘the international valuation standards committee’, ‘the European group of valuers’ association and ‘the royal institute of chartered surveyors’