Fair value of the property

Waleed Al Zarooni

27 March 2023

Before pumping his money, the real estate investor often focuses on determining the real fair value of the property, to determine the size of the expected gains, and to obtain the best possible profitability.

In light of the high real estate demand in the Emirate of Dubai for local and foreign investors of various nationalities, and the increase in real estate prices at record rates since the Corona pandemic, real estate prices are still within the acceptable range, at real fair value, and avoid a real estate bubble, according to global research reports.

As shown by UBS's latest annual Global Property Bubble Index, Dubai's assessment reflects that there are no imbalances in urban housing markets, and prices are affordable and equitable.

The continued strong demand for investment in a positive environment is undoubtedly fueling the continued pace of price growth in Dubai's promising real estate sector.

The real estate sector has reached a great degree of maturity, improved supportive market factors, and strong demand for residential property categories, to find some real estate developers in the past period overpricing luxury properties in Dubai.

Overpricing is not negative for the real estate market, but is always positive if the demand in the market has the ability to absorb the properties offered by these developers.

Dubai relies on several basic elements that support the recovery of the real estate sector, whether infrastructure or advanced services, or regulatory legislation that preserves the rights of all, all of which ensures the success of any serious and ambitious investment activity, to make the emirate one of the best financial centers around the world, and thus this ensures the continuation of strong demand for real estate in all categories, so the high pricing of its properties, although it does not find an echo in the short term, may be appropriate in the medium and long term, especially with the stability of prices. current at its fair value.

Dubai's real estate is also gaining confidence in the lucrative opportunities presented by the real estate sector, with luxury property sales in Dubai at record levels since the pandemic, and Dubai attracting the interest of wealthy people from around the world.

Reaching these levels is undoubtedly the result of the work of regulatory bodies at the highest level of efficiency and professionalism, which have proven in the past period the extent of their credibility and the integrity of their legislation, which contributed to attracting many of the world's wealthy to invest in Dubai real estate, as well as players within the market in various disciplines, including real estate developers, building contractors, and brokers.

• The real estate sector has reached a high degree of maturity, improved supportive market factors, and strong demand for residential real estate categories.

Chairman of W Capital Real Estate Brokerage

@WalidAlzarooni

walid.alzarooni@gmail.com

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