When shopping for properties for sale in Dubai, the first thing a buyer observes is the price of the property. While the layout, quantity of rooms, location, and available amenities are all important, the price is what draws the buyer’s attention the most. This is why sellers pay close attention to the price they set for their home. Particularly in Dubai, where sellers are facing stiff competition.
The majority of the time, property sellers rely on real estate brokers to determine the value of their home. To determine the price, the agents undertake a detailed investigation of the property and consider a variety of other factors.
Let’s have a look at the complete property appraisal procedure as it is carried out by real estate agents:
Home Inspection in Dubai: How to Determine Property Prices:
In most situations, the process of calculating property prices in Dubai begins with a thorough home assessment. It goes without saying that if a house has peeling paint, broken cabinet handles, leaking pipes, inadequate insulation, and a dated overall appearance, it’s impossible to set a competitive price for it, even if it’s in a top Dubai location.
On the other hand, if the next house, with the same layout and size, is preserved in immaculate shape, it will command a considerably higher price. This is why real estate agents frequently advise sellers to invest in certain improvements. This increases the likelihood of the Dubai property being sold at a high price.
Property Types in Dubai:
Another important aspect that determines property prices in Dubai is the economy. Agents do not set a high price for a small property, such as a studio apartment, because purchasers are not willing to pay a premium price for these properties.
Agents also charge more for larger and more spacious property units, such as villas and townhouses, as well as penthouses for sale in Dubai. However, there are some neighbourhoods in Dubai where even smaller flats are more expensive. As a result, there may be some exceptions.
Aside from that, the ‘luxury or non-luxury’ component comes into play. Even though the property is located far from the city centre, agents like to set a high price for luxury residences with modern amenities. Standard properties, on the other hand, can be purchased for a reasonable price. The distinction between furnished and unfurnished houses is the same.
To establish the worth of a property in Dubai, real estate brokers usually undertake a comparative market analysis. To do so, they compile data and statistics from a variety of sources. The price per square meter is then calculated using this information. This gives them with a starting point. Then there are other considerations, such as the property’s condition and furnishings.
Buyers typically conduct extensive research on the neighbourhood and average property prices before visiting the property. As a result, before setting property prices in Dubai, agents look to the area’s sales history. In most cases, looking at sales over the previous six months is enough to estimate the pricing. It gives them important information about how much a buyer is willing to spend for properties in that particular location.
Market conditions change over time. Some are expected, while others come as a complete surprise. No one foresaw COVID-19 and its impact on the real estate market, for example. In the Dubai real estate market, a number of post-COVID trends have arisen. The demand for apartments and tiny living spaces has decreased, while the desire for villas and townhouses has increased.
Furthermore, the introduction of new development in a given area alters market dynamics. For example, if a new hotel or tourist attraction is planned in an area, the area’s popularity is certain to rise. This has a direct impact on property demand and prices. This is why, when evaluating property prices in Dubai, agents frequently examine market trends.
The Neighbourhood and Neighbours:
It is well known that the location of a home plays a significant role in determining property prices in Dubai. However, the nearby residences or projects are frequently overlooked. This, on the other hand, is an important aspect of the property appraisal process.
If your home is next to an under-construction project that will take a long time to complete, it may have a negative influence on the value of your home. As a result, the developers will not establish a pricing that is excessively expensive. Similarly, if your property is close to a market or a household with noisy neighbours, don’t expect to earn a premium price for it.
While the aforementioned facts may lead you to believe that you may set your own price for your home, this is not a sensible move. Real estate agents are well-versed in the real estate business. They can also predict market trends and their predicted repercussions by using their resources and knowledge. As a result, it goes without saying that sellers should hire real estate brokers. Apart from establishing the property value, they may also assist with the sale of the property fast and at a profit.