Special Features
Land Department Values Land Worth of AED 89 Billion in Property
The Government of Dubai Land Department has announced that its Valuation Committee - in cooperation with Dubai’s Real Estate Appraisal Centre, a part of the LD - has valued 2,388 pieces of property worth AED89 billion. The report also reveals that the number of transactions received in the first half of 2013 has grown by 41% from last year, with the total value of properties undergoing evaluation going up by 69.8%. Both figures are a clear indication of efficiency of meeting with and the extent of the demands for these services.Engineer Mohammed Khodr AlDah, Head of Dubai’s Real Estate Appraisal Centre, explained that in addition to various services offered by the LD, the Valuation Committee also serves as an assessment mechanism for the department. "The amount of transactions that the committee sees serves as a gauge for progress of the market - with growth thus far being a clear indication of a recovering market and increased investor confidence. The authority itself complies with stringent international standards to meet with requests for a fair assessment of various pieces of properties in accordance to policies set in place by the Real Estate Appraisal Centre at the LD."
Also pointed out in the report is the fact that the Committee has held 50 meeting from the beginning of the year until the 30th of June, and that the Centre has made over 522 field visits during that time period. The report also notes the high amount of valuation requests made for empty land plots, which accounted for more than 50% of the total, with the remaining percentage (49.7%) of the share going to completed buildings.
Transactions for granting purposes were the highest in terms of purpose of valuation by 27%, while Dubai Municipality came in at second place with 22%, sales valuationsat 13%, banks 10% and Dubai Courts in fifth place with 9%.
Other transactions included annual audit of companies at 8%, while granted to freehold procedures took up by 4% and valuation purposes for organising auctions is 3% and 2% for inheritance purposes, and finally valuation for the purpose of investor visas is 1%.
The value of land in some areas, like Nahda Second reached AED 667 per square foot for land, while Mirdiff reached AED 320/sqt, and Jumeirah First reached AED 492/sqt, and the valuation for the land in Burj Khalifa area reached AED 1960.
Systemised real estate valuation plays an integral role in the growth of investments and the economy by doing away with random prices, providing a balance between supply and demand and having a direct impact on the resolution of property disputes.
