Property Prices in Dubai – this is the first thing that a buyer notices when looking for properties for sale. While layout, the number of rooms, location, and available facilities also matter, it’s the price that grabs the maximum attention of the buyer. This is why sellers pay special attention when setting the price of their property. Particularly in Dubai, as the competition is tough for sellers right now.

In most cases, property sellers turn to real estate agents to determine the price of their property. The agents conduct a thorough analysis of the property and take into account various other things in order to set the price.

With that said, let’s take a look at the entire property valuation process undertaken by real estate agents in detail:

The Process to Determine Property Prices in Dubai

Home Inspection

The process for determining property prices in Dubai, in most cases, starts with a thorough home inspection. Needless to say, if a property has peeled off paints, broken cabinet handles, leaking pipes, poor insulation and a dated overall look, it’s not practical to set a competitive price for it, even if it occupies a prime location in Dubai.

On the other hand, if the very next house, having the same configuration and area, is kept in mint and presentable condition, it will be priced much higher. This is why real estate agents often recommend sellers to make certain upgrades. This brightens the chances of the Dubai property being sold at high rates.

Types of Dubai Properties

It is another major factor that influences property prices in Dubai. If it’s a small property, such as a studio apartment, agents do not set a high price for it simply because buyers are not willing to pay a lot for these properties.

Similarly, bigger and spacious housing units, such as villas and townhouses, and even penthouses for sale in Dubai, are priced higher by agents. Having said that, there are certain areas in Dubai where even smaller units are priced higher. So, there can be exceptions here.

Other than that, ‘luxury or non-luxury’ factor also comes into the picture. Agents tend to set a high price for luxury properties that are laced with modern amenities, even if they are located at a distance from the city centre. Standard properties, on the other hand, are available at rather affordable prices. The same is the case with furnished and unfurnished properties.

Past Sales

Generally, real estate agents conduct a comparative market analysis to determine the value of a property in Dubai. To do this, they gather information and statistics from various sources. This data is then compiled to determine the price per square metre. This provides them with the base to start with. Then, the other factors, such as the condition and furnishing of the property come into the picture.

Buyers tend to do comprehensive research on the area and average property prices prevalent there before even viewing the property. Therefore, agents also review the sales history of the area before setting property prices in Dubai. Usually, reviewing sales of the previous six months is sufficient to determine the price. It provides them with key insights into the amount the buyer is prepared to pay for properties located in that particular area.

Market Trends

Market trends vary from time to time. Some are anticipated, while others appear completely out of the blue. For example, no one anticipated COVID-19 and its impact on the property market. Numerous post-COVID trends emerged in Dubai real estate sector. The demand for apartments and small living spaces shrunk, while a higher number of queries are recorded for villas and townhouses.

Furthermore, the launch of new development in an area also changes the market trends. For instance, if a new hotel or tourist attraction is planned in an area, it is bound to see a rise in popularity. This directly impacts the demand and property prices. This is why agents tend to take market trends into consideration when determining property prices in Dubai.

The Neighbours & Neighbourhood

It’s already established that the area where a property is located matters a lot when setting property prices in Dubai. However, the fact that the homes or developments surrounding it is often neglected. This, however, is an integral part of the property valuation process.

If your home is situated next to an under-construction project that’s going to take a long time to complete, it can impact the value of your home adversely. So, the developers won’t set the price too high. Likewise, if it is next to a market or a household with noisy neighbours, don’t expect the fortune of getting a high price for your property.

The Takeaway

While the aforementioned factors may give you an idea that you can determine the price of your property on your own, this, however, isn’t a wise decision. Real estate agents have ample knowledge of the property market. Furthermore, using their resources and expertise, they can anticipate market trends and their expected effects as well. So, suffice it to say, sellers should hire real estate agents. Apart from determining the property price, they can help to sell it quickly and at good rates as well. 

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