Property Valuation
An independent assessment of a property's market value, required by banks before approving a mortgage.
What is Property Valuation?
Property valuation is an independent assessment of a property's fair market value conducted by a RERA-certified valuation firm. Banks require this before approving a mortgage to ensure the property is worth the amount being financed. The valuer inspects the property, assesses its condition, compares recent sales of similar properties, and issues a formal valuation report. The mortgage amount is based on the lower of the purchase price or the valuation.
Property Valuation in the UAE
In the UAE, banks use approved valuers from their panel. The buyer typically pays the valuation fee (AED 2,500-3,500). If the valuation comes in below the purchase price, the buyer must cover the difference in cash or renegotiate the price. Valuations are valid for 90 days. For off-plan properties, the valuation is based on the expected completion value and current construction stage.
What if the valuation is lower than the purchase price?
You'll need to cover the shortfall in cash (as the bank will only lend based on the lower figure) or renegotiate the purchase price with the seller.
Can I choose my own valuer?
No. Banks use valuers from their approved panel to ensure independence. However, you can request a re-valuation if you believe the initial assessment is incorrect.