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A valuation is generally a relatively quick process and takes very little preparation on the homeowners part. With that being said, there are a few things that you should be doing prior to the valuers’ arrival. It’s important to remember this in order to properly prepare your home and to ensure the entire valuation is conducted smoothly, in a timely and efficient manner. Here, we have listed a few things that homeowners can do to ensure this is possible. Ensure full access In order to complete a full valuation, the valuer will need to have access to every room in the house. As such, it is the home-owners responsibility to ensure that each room is unlocked and the valuer can view every part of the house. This includes anything and everything that is a part of the property, such as outdoor areas, basements and/or any balconies the home has.If your property is being rented out, the tenants should be given prior notice and informed of the exact time and date the valuation will be taking place. The tenant should also be briefed so that they can ensure the entire property is available for the valuer to view. You should also ensure that the valuer has access to any communal facilities or any shared spaces that comes with the property, including pool areas, gyms, parks, etc. Having this done in advance will speed up the process by ensuring access is possible as and when the valuer needs it.Provide necessary documentationBefore your valuer comes to your home, you should have all the necessary documents prepared in advance. This includes any building plans, rates notices and any other documents relating to your property. You should also provide any ‘No Objection Certificates’ and/or any planning permissions that your property has for any future work that can be done on the property. The more paperwork you can provide, the more accurate the valuation can be.  This can help make the space seem more spacious and better present all the available space you have. Ensure the property is tidyFirst impressions count. Whilst a good valuer will be able to look past a bit of clutter, however a thorough cleaning and tidy up will help show your property in the best possible light and will be easier to assess. Some key areas to keep in mind would be the bathrooms and kitchen area as these can add great value to your property. It would also be advised to do a full vacuum and sweep as well as taking out any rubbish you have.As a homeowner, you should never neglect your garden or other outdoor areas when it comes to valuations. This means you should mow your lawn and trim any overgrown weeds and shrubbery.  Lighting is also a key factor, as it can make a space feel a lot roomier. If you are not currently living on the property, try and ensure that electricity is connected. Otherwise, try to organise the valuation to be conducted during the day so there is plenty of natural light illuminating your home. This is especially important considering the valuer will need to take many photos of the property. Highlight key features of the homeIt is important to highlight any changes or renovations that have been conducted on the property. The homeowner will be in charge to provide documentation to prove what and when these changes were made. This is even more important for changes that have been made that the valuer may not immediately notice or are not visually obvious. Some examples would be new air conditioning units, irrigation systems, or any structural changes/improvements that have been done. What’s more, the valuer should be informed of any other spaces that the property can use that are outside of the physical unit space. This will include any car parking spaces, as well as any communal amenities that property owners can use. This could include communal parks/green spaces, gyms, swimming pools, tennis courts or any other facilities. Keep it COVID-19 friendly Now more than ever, it is important to ensure proper hygiene protocols are put in place, with the homeowner preparing for the visit. Whilst the valuer themselves will take necessary precautions, such as wearing a mask and using hand sanitiser, it is the homeowners’ responsibility to ensure the safety of themselves and the valuer. The property should be sanitised with anti-bacterial spray. You should also keep all doors open, providing a clear pathway for the valuer, with them not needing to touch any doors or door knobs unnecessarily. Further to this, if the property has multiple occupants, they should either be advised to vacate the house whilst the valuer conducts the work, or they should remain in one room, minimising any potential contact the valuer will have with other people. Set an allocated time-frameThe homeowner should set aside an allocated time for the valuer to have complete uninterrupted access to the property. An apartment valuation will typically take 5 to 15 minutes, whilst a villa valuation will generally take anything from 10 to 30 minutes. Ideally, the home should either be empty or otherwise, all occupants should remain in one room, as well as be advised not to interrupt the valuer whilst they are conducting their work. This will make the process a lot more efficient and will allow the full valuation to be completed smoothly in a timely manner. For the inspection of any communal areas, management and/or the necessary individuals should be notified in advance so that the valuer is expected and allowed to conduct their work thoroughly. At CRC, we have a team of highly experienced, RICS certified valuers, who are held to the highest professional standards. We will be able to give you a full brief on everything that is required in order for you to get the best service possible. Regardless of your home or property type, we will be able to conduct a full and thorough valuation and produce a comprehensive report in an efficient and timely manner. If you require valuation services, book a consultation with us today.   

Whether you want to invest in commercial office space, retail, warehouse, or another type of commercial property, the first step is to understand factors affecting commercial property value. All investors want to know is how to get better returns for their money and the factors that will affect the value of their investment going forward. There are many factors that come into play, ranging from location to transport links, local amenities, and property characteristics. We have broken down some of the crucial elements that can impact the commercial property value.Location One of the critical factors affecting commercial property value is the location, including the transport links in the surrounding area. Infrastructural development within the surrounding area is one of the most important factors which influence real estate valuation. The average price per square foot in Business Bay is AED 589, which is higher than the average price per square foot in Barsha Heights, which is AED 579. The presence of transport links and other facilities in the vicinity of the property helps increase the property value, and as such the valuation of properties with better infrastructure capabilities and modern amenities are generally higher than those which fail to provide it. Access to transport is another crucial aspect that can affect the value of your property considerably. The more modes of transportation that your unit is connected to, the higher the value will be. The more popular and accessible your property is, the more valuable it will be. Take, for example, an office space in a key business location such as Business Bay. The area is well connected to Dubai’s key arterial roads, has access to the Dubai Metro, and has many bus stops within the district. This will have a higher value than an office in a remote area with very few amenities. Depending on the preferences of your employees, some amenities will more important than others. Supermarkets, restaurants, cafes, and other retail establishments in close proximity to your unit will help increase its value. Other facilities such as clinics or hospitals can also affect the value of the property. Further to this, the plot type that the unit is built on will also affect the property value. Buildings that are constructed on freehold land tend to command a higher valuation than those on leasehold plots.Property characteristics Generally speaking, the larger the property the more valuable it will be, with larger spaces commanding higher prices. With that being said, whilst your unit may cover a large amount of square footage, this is only useful if the space is actually usable. A good way to optimise your property’s value is to ensure that all available space is utilised. This might mean changing the configuration of your unit and opening up areas so there is more room and space for the end-user to conduct business. The type of buyer for your property can help determine the value of your property. You should consider who your property will be best suited for and if there is a high demand from these users. As such, where possible, you should optimise your unit so it is best suited for the type of end-user you are trying to attract. Commercial property that doesn’t have the functionality to meet current market demand, will have the potential to be unable to satisfy potential end users and therefore be less valuable. If your unit is designed to be used as an office, then as the owner, you should ensure that the space can function as an office space. Property condition The quality of the building also plays an important part. A brand new, modern building, will generally be valued higher than a run down unit that has not been kept up well. Pay attention to building ratings, and how your asset compares to other similar properties in the area. This follows on to make sure that your property is well maintained. The asset should not just be visually appealing but should have a well-maintained interior and exterior. Those first impressions can be critical even when it comes to securing a viewing. Minor improvements such as painting and deep cleaning can be very effective with small capital expenditures.Any upgrades to your unit would be welcomed by potential buyers, especially if they improve the property’s potential to make a higher profit. What’s more, there is an increasing number of companies that are making it a goal to be more environmentally sustainable. As such, making environmentally concise improvements can increase the value of the property by reducing operational costs. This could be as simple as insulating the property and switching to efficient light bulbs. If you are looking to attract large companies, more of them will have corporate social responsibilities and will only occupy energy approved assets. With that being said, whilst making improvements can make your property more attractive and drive the price up, cost does not necessarily equal value, so plan carefully what and how much you spend on improving the unit. Smaller improvements such as a fresh lick of paint, fixing any minor repairs, doing a professional clean, including carpets, will all make your property more attractive to potential buyers and do not cost a lot of money. However, first impressions do count, so both the interior and exterior of your property should be well maintained.Paperwork and approvalsAnother major factor that can affect the value of a property, is whether you have all the necessary paperwork. Do you have your licenses in place? Have you got all your approvals? What’s more, a property that has planning permission to extend or make any significant changes will also improve the value as it will enable greater opportunities for the unit. Whilst these are all factors that can affect the value of your property, it is worth noting aspects of your unit that will not be included in a valuation. Generally speaking, a valuation will include all non-moveable assets within the property, such as the size, layout, specification, condition, and views. A valuation will therefore exclude furniture, plants, machinery and any equipment within the unit. As you can see, there are many factors that come into play when determining the value of a commercial property. If you require a thorough and comprehensive valuation report, contact us today to book a consultation with one of our valuation experts. 

A property valuation can be needed for a variety of reasons by different people and can play an important role in getting loan security, financial reporting, or internal use. The importance of these valuations makes it no surprise that individuals and companies alike would want to know how much it will cost before proceeding with a particular company. With that being said, that no valuation is the same, with many variables involved in the process. As such, it is rare for a valuer to have a set or standard price for a property valuation. So whilst answering the question ‘How much does it cost for a property valuation in Dubai?’, it would be much more efficient to understand the different factors that affect the price. We have broken down some of the key factors that impact the cost of a valuation, and what can make it more or less expensive.  Purpose of the valuation There are many different reasons why a person may need a valuation and as such the prices for valuation. One common reason is for loan security. Lenders or banks will often necessitate an independent valuation to take place so they can determine how much they are willing to lend. Companies or individuals may need independent advice to determine the value of the assets they hold. Otherwise, corporations and businesses will need to conduct quarterly or annual valuations for financial reporting and accounting. Whilst these are all valuations, their purposes differ, and as such, so does the liability, therefore the prices of the valuation will most likely vary.  Time and EffortSome valuations take more time than others, depending on the complexity and the scale of the project. Take for example a drive by inspection for a single office, which will be priced differently from a total inspection of a full tower or commercial complex. The more effort, and the more complex the valuation, the more time it will take, and subsequently, the more expensive the valuation will be. As a general rule, smaller residential properties will be considerably less expensive than larger commercial properties.  Inspection TypesThere are several different inspection types that can be performed, depending on the needs and requirements of the client, as well as the specifications of the property in question. One inspection type is a desktop investigation, this involves an investigation into the property and its surroundings which are all done from the valuer’s computer at their office. All of the relevant documents should be provided to complete the valuation accurately. A client may opt for this if the client has had a full valuation report completed previously, and all that is needed is a re-evaluation of the property. Next, there is a drive-by inspection. If access into the property is not permitted a client may opt for this type of inspection. This involves a full external inspection, wherein only the outside of the property is looked at. Following this, a partial inspection may be completed. This type of inspection would arise if the valuer has restricted access to the property and they are only allowed to access certain parts of the unit. Finally comes a full visual inspection, which will involve an internal, external visual inspection. This is the most comprehensive inspection type that will give the most detailed property valuation report.Depending on the type of inspection, the price may vary, with full property inspections tending to be more expensive than drive-by or desktop valuations. With that being said, a full inspection would tend to be the best type to do whenever possible. Valuation methodology There are various methods that are employed when doing a property valuation, and deciding which are used is generally dependent on asset type.  The most commonly used methods are comparable, investment, and the profit method. The investment method is typically used for more complex investment type properties, whereas the comparable method is the most commonly used when there is a good availability of transactional evidence. As one can see, there are a lot of different factors to take into account when factoring in the price of a property valuation, with the purpose, amount of time, the inspection type, and the methodology all playing a part in the final cost. To get an accurate quotation of how much a valuation of your property will cost, the best course of action would be to book a meeting with a chartered surveyor and/or a qualified valuation expert. They would be able to sit down with you and discuss your special requirements, as well as find out more information about the type of property that needs to be valued. After a thorough preliminary analysis has taken place, the valuer will be able to give you a quote. If you require a valuation for your property, our valuation team is fully qualified and RICS certified, so will be able to deliver a high quality and comprehensive report that is designed with your specific needs and requirements in mind. For more information, book a consultation with one of our team.    

Located between Sheikh Zayed Road and Al Khail Road, Al Quoz is a mixed use district that houses residential and commercial sub-communities. The commercial sector of Al Quoz is known as Al Quoz Industrial Area, and consists of four different zones, namely Al Quoz Industrial Area 1, 2, 3 and 4. Known primarily for its explosive industrial development, Al Quoz Industrial Area is a well-rounded and ideal place to rent a warehouse or an industrial building. The Dubai Municipality continues to work on and develop the sub-areas within the commercial district as mass accommodation to create safe environments for labour camps. The goal is to make Al Quoz Industrial Area an industrial hub that facilitates the operations of development projects like Jebel Ali, Dubai Marina as well as a number of hotels.The area is located close to other areas like Al Barsha and Umm Al Sheif, which are residential neighbourhoods, and commercial and financial hubs like Business Bay, Downtown Dubai and World Trade Centre. Being in close proximity to the centres of economic activity is a guaranteed benefit for any business and will make business exchange and interaction with other companies much easier.Al Quoz Industrial Area for your factory and warehousing needsAl Quoz Industrial Area is one of the oldest centres of manufacturing in Dubai and is home to many companies and their factories. It is one of the most sought after areas for warehousing.  An area dedicated to factory set-up and labour housing, it has the most conducive environment for production activities and housing for workers, as well as storage space. The infrastructure designed for these services is most suitable for manufacturing and storage in line with company standards and parameters. Ideally, a company looking to set up a manufacturing process will find properties for rent to establish a factory, store any products that need to be stored and place their staff in comfortable living conditions. This creates utmost convenience for the workers as they will be able to live and work in the same vicinity. Saving time and money on long hours of commuting from an industrial area to a residential area and back, this will benefit both the company and the workers.The warehouses in Al Quoz Industrial Area are of different types and facilities. Companies can choose a warehouse depending on their size and facility requirements.Al Quoz is most popular with companies that are involved in construction and manufacturing of steel, aluminium and other building materials, for obvious reasons. The availability of warehouses makes it easy for these companies to set up factories. Many companies dealing in contracting, vehicle repair, furniture manufacturing and foodstuff distribution are also present in this area.LicensingCompanies that set up factories and warehouses in Al Quoz Industrial Area require mainland licensing. Companies that obtain a commercial and industrial license for their business activities have to ensure that one UAE national holds at least 51% of the total equity of the company. PricesRents for office spaces in Al Quoz Industrial Area generally range from AED 75,000 to AED 750,000 per year, depending on the size and type of building. Warehouses for rent can range anywhere from AED 80,000 to AED 2,000,000 per year, depending on the size and facilities of the warehouse.  Warehouses for sale fall in the range of AED 7,000,000 to AED 25,000,000.AmenitiesThe area is serviced by several supermarkets and groceries including West Zone, a trusted chain of supermarkets with branches all over the city. The market stocks high quality foodstuff, fresh fruits and vegetables as well as household and personal use items. Dulsco Medical Clinic and iCare Blue Clinic are two healthcare facilities situated within the area. These clinics provide state-of-the-art medical services. The close proximity of these clinics to the industrial units ensures that in the case of an accident or injury at work, staff are able to receive immediate care. The working residents of the area also visit the clinics for minor issues. For more advanced, multi-specialty care, Burjeel Hospital for advanced surgery is a few minutes away by car. The area also has dedicated fitness clubs and gyms for those who wish to maintain an active lifestyle. The nearby Al Quoz Pond Park has many jogging and walking trails as well.The presence of all these essential facilities makes Al Quoz Industrial Area a balanced place where the resident staff can live and work comfortably. Connectivity Al Quoz Industrial Area is a very well connected area, already sitting between Sheikh Zayed Road and Al Khail Road. The E11 and E44 highways enable those with cars to get to all parts of the city easily and make it especially convenient to reach other commercial districts like Business Bay and Downtown Dubai. Most commercial buildings have dedicated parking spaces for their employees so finding a parking space is not an issue.For those who use public transportation, the system is elaborate and also well connected. Noor Bank metro station and Umm Al Sheif metro station on the Red Line are the closest stations to the area. A metro link bus runs from the area to the stations and several RTA buses have routes within the area as well to keep the zones connected. Air conditioned bus stations are located at short intervals throughout the area. LeisureThere are numerous avenues for leisure activities in Al Quoz. The nearest mall, Al Quoz Mall, is located in Al Quoz Industrial Area 3, and has a few electronic stores, a cinema, a hypermarket and a range of restaurants. Other malls like Oasis Centre, Al Khail Mall and Mall of the Emirates are also situated nearby and have an even more varied offering of retail and dining options. A public beach in Umm Suqeim and Kite Beach are a short drive away. These beaches are lined with coffee shops, eateries and courts for sports. Al Quoz Pond Park is another place where people can enjoy the outdoors and some fresh air. It is a large, green and open space suitable for picnics and gatherings. Companies that set up labour camps or offices in Al Quoz Industrial Area will be able to provide their employees and workers with several opportunities to kick back and relax, which is essential for the overall health and well being of any person. Those staying or working in the area will be able to take a quick break at any of these spots and rejuvenate themselves. Ensuring good mental and physical health for employees will boost productivity for companies.Creative Free ZoneFor companies and organisations that deal in the arts, Al Quoz Industrial Area is the best place to set up headquarters. The area has been made into a creative free zone, an initiative taken up by the Government of Dubai to encourage and promote artists, authors and innovators. In a bid to unlock the economic potential of these creative activities, the free zone has been designed to provide numerous services and opportunities to those engaging in creative industries. The aim is to create an atmosphere that fosters creativity and reap the benefits of the economic growth caused by the establishment of a creative industry.  Organisations like art galleries, studios and collectives of different kinds can find the best spaces to rent or buy and take full advantage of the benefits of the creative free zone. The location of the free zone and it’s close proximity to Dubai’s tourist hub will help attract more visitors to these creative businesses, giving them more exposure, opportunities and a wider outreach. Warehouses and large, open storage units are ideal for setting up galleries and studios, and can even be opened to the public for viewing. Currently, the trend of renovating a warehouse and making it a commercial spot for visitors is very popular and is part of a new, more eclectic style of displaying art.  Alserkal Avenue is an important arts district in the Al Quoz area. What started out as a small block of art galleries housed in warehouses has transformed into an impressive artistic hub. The avenue hosts many creative and cultural events like Art Dubai and Art Nights. The galleries in Alserkal Avenue sport all kinds of art, from local to European and American works, as well as contemporary and modern art. Besides the galleries and creative enclaves, the compound also has a number of eclectic retail outlets and chic cafes that complement the artistically charged atmosphere. With so many options and amenities, companies can find different properties for different needs, whether it is setting up a manufacturing unit, finding storage space or hosting comfortable and safe living spaces for workers and employees. This will enable simplification in operations and increased productivity. The creative free zone provides a wide range of services and benefits to those setting up creative and artistic businesses in the area. Perks like tax and duty exemptions will help upcoming artists to boost their businesses. Renting a commercial property in Al Quoz Industrial Area is the best option for those trying to establish their creative businesses. Al Quoz Industrial area is one of the best places in the city to rent a warehouse or industrial building. The fast paced and industrial nature of the environment is ideal for commercial renting and buying. Having a warehouse in the centre of busy commercial activity will only benefit the company. The ongoing development of the area as a commercial and creative district will only make it an even better, even more ideal place to set up a business, from start to finish.   

A very prosperous city, Abu Dhabi has gained a reputation for being an attractive location for investors and business owners due to the many schemes the government has implemented in order to ensure a thriving business environment. Whilst it is known that the city is a good place to conduct business, company owners should know where are the best places to set up and operate from. As such, we have compiled a list of the top 5 areas in Abu Dhabi to rent an office. Abu Dhabi Corniche A popular place to live and work, Abu Dhabi Corniche is one of the busiest commercial areas in Abu Dhabi, being a key business and cultural hub of the city. Primarily centered around the 8km Corniche Road, means that there are many lovely restaurants and cafes as well as a wide range of amenities, including gyms, malls, supermarkets. Its strategic location in the centre of the city, means offices in this area have easy access and are in close proximity to other key business areas throughout the city, including Al Markaziyah West, one of the busiest commercial streets of Abu Dhabi and Al Khalidiyah, the cultural hub of the city. Many  of the offices within this area feature beautiful sea views, or overlook luscious green parks making them very pleasant and desirable places to work. The fact that there are many office buildings in the area, make the prices highly competitive allowing companies to get more value for money for their business space. Al Muroor Whilst a bit further away from the main hub of Abu Dhabi City, Al muroor contains a wide mix of both commercial and residential properties, including an extensive portfolio of office spaces. Centered around the key street , which is lined with a wide range of amenities, including restaurants, shops, and other retail units.  It is ideally located between Downtown Abu Dhabi, and the Embassies District, and close to the popular areas of Al Nahyan, Al Etihad, and Al Bateen. One side of Al Muroor consists of many large high rise towers, whilst the other end features several communities of spacious villas which are popular with families.  Al Reem Island Due to the high demand for commercial property in the area, office prices are somewhat higher than other areas in Abu Dhabi.With that being said, this freehold area is becoming an increasingly sought after destination for business, due to it being one of the fastest developing neighbourhoods in Abu Dhabi, as well as its popularity as a residential area. The area is likely to only gain in popularity, due to a number of new developments and upcoming projects. Although located on its own island, the area is easily accessible by car, with it being connected to Abu Dhabi’s main highway, meaning it is a convenient area to commute to.  Elektra street Electra Street is known as an area of the city that never sleeps. Whilst one of the oldest places in Abu Dhabi, it has made a name for itself for being home to a large and thriving electronics market. It sits at the heart of the city with great accessibility to exceptional facilities., including shops, supermarkets and plenty of other amenities that your business and employees will appreciate. Hamdan Street Hamdan Street is one of the busiest commercial areas of Abu Dhabi, strategically located in the centre of Abu Dhabi, it is one of the oldest and most established areas of the city. Known for its retail hubs and commercial buildings, Hamdan Street has proven to be popular for business owners to base their companies. Running parallel to the Corniche, it is close to many of Abu Dhabi’s residential areas, as well as Marina Mall, World Trade Centre Mall, Qasr al-Hosn, the key retail, business, and cultural hubs of the city. If you are looking to rent out an office in Abu Dhabi, contact us today to arrange a free consultation, where we will discuss your company’s needs, and find the best space and location for you to lease.  

What is a property valuation? A property valuation, simply put, is an assessment of a property’s value that looks at a range of factors, taking into account typical characteristics like size, layout, specification, condition, views. However, it will generally exclude non-permanent property features such as furniture, and the result will be in the form of a detailed report of a property’s market value. It is important to note that value does not always equate to cost or price in a valuation.  Price is the actual amount that a person will pay for something. Cost refers to the actual money that has been spent on a property, including upgrades, renovations, improvements and labour costs to build the property. Whilst these are factors that can influence value, they are not determinants of value.  As such, the final sale price is usually different from what is stated in the valuation report. What is the valuation process?A valuation is typically undertaken by a valuer/surveyor and is overseen by senior staff who are qualified to do so. The valuer carries out the valuation on behalf of their company. Valuers must be independent, objective and transparent in their approach.  In Dubai, there is local regulation to become a registered valuer, similarly to the RICS, issued by the Dubai Land Department. The first stage in a valuation would involve a due diligence check that would include a conflict of interest check and initial analysis of the preliminary information received. After this is completed, there would be a property inspection, with notes taken on the condition of the building, any upgrades, location and any other relevant information that would affect the property value. Further research would need to be conducted, looking at recent real estate transactions in the property’s vicinity and in-depth market analysis. A key to determining this would be using different data platforms and sources, including land department data, internal and external databases, and conferring with reputable real estate brokers. Once detailed research has been completed, an in-depth report would be written up with a quality assurance check carried out by a senior supervisor that is RICS certified, ensuring the report is held to the highest standards. Why are valuations necessary?One of the more common uses for a property valuation is because a bank or money lender requests one. These valuations would then be used to determine a mortgage, the risk of an asset and how much the lender is willing to give to the property owner. However, these are not the only purpose of a valuation. They are also necessary for audits and end-of-year reporting for tax and corporate purposes, as well as to help negotiate a property deal. As such, there are many people who might want to have a valuation done on their property, such as property developers, property owners, and investors.If you require a valuation to be undertaken on your property or portfolio, contact us today to book a meeting with one of our RICS certified valuers.   

When securing a mortgage for a property, the bank will require a valuation to be carried out, where an independent valuation firm is appointed to assess their opinion of Market Value (MV). What may come as a surprise to potential buyers, is the valuation figure they expected maybe in disparity with the valuation done by the bank’s appointed surveyors.What is Market Value?The first thing to understand is what Market Value (MV) means. Essentially, it is the agreed-upon price between the buyer and the seller determined through demand, supply, and the current market conditions, or rather the price at which the property is being sold at a particular time. MV also assumes that the property has been properly marketed. With that being said, when determining MV, there is sometimes an element of emotion that affects the price. A buyer may fall in love with a property and will therefore be prepared to pay a higher price. A buyer may also get tired of trying to find the ‘perfect‘ property at their budget, so will compromise and increase the budget. Alternatively, a distressed seller may get worried if their property is not selling, and will reduce the price.  As such, these personal, human elements can have an effect on the actual purchase price.How do ‘market valuations’ differ from ‘bank valuations’?While market value can be affected by emotion, bank valuations, on the other hand, are purely concerned with numbers. A person will usually get a bank valuation when they are looking to get equity from their property or to secure a mortgage for a house they want to buy. A key difference between market and bank valuations is that market value tends to be higher than a bank’s value. The bank has to ensure that the mortgage does not exceed the value of the property, as it will serve as collateral if you are unable to make the loan repayments. Their main goal in valuing the property is to determine how much they can recoup if an individual were to default on their mortgage payments and the property needs to be repossessed in distressed circumstances. If the situation arises, the bank may be forced to sell below market value in order to avoid accruing interest over a long period of time.  Generally speaking, bank valuations tend to be on the lower end of the pricing spectrum. A ‘market valuation’ you receive from a broker is simply their opinion of value based on experience. A valuation from a bank is typically undertaken by an independent valuation company that provides a valuation report, which includes Market Value (MV) based on reliable evidence. A person will usually use a bank valuation when they are seeking to release equity from a property or to secure a mortgage for a property. The bank ensures that the mortgage does not exceed the value of the property, as it will serve as collateral if the borrower is unable to make the loan repayments. If the situation arises that the bank is forced to repossess the property, they will likely attempt to sell the property to recoup the loan. You may require a bank valuation to secure a mortgage or release equity in a property. In this instance, an independent valuation is carried out to ensure the amount to be borrowed is within the bank’s loan-to-value risk appetite. A deposit will be required from the buyer and combined with the mortgage should cover the purchase price. The loan-to-value ratio is capped by the Central Bank and will differ depending on various factors including property type, the value of the property, and if the property is an investment or to be lived in. It is important to remember that a bank is typically risk-averse.Can anything be done to improve a bank valuation?The process of releasing equity or gaining a mortgage that works for the borrower can be frustrating. Borrowers may have to pay a higher deposit than originally thought. That withstanding, there are some things a homeowner can do to improve the value of their property. First impressions matter, so make sure your property is clean and tidy. Give your property a minor face-lift with some cosmetic updates. This might include a new lick of paint on the walls, a bit of landscaping and fixing any minor repairs. You should also make sure that all unfinished renovations are completed before a surveyor visits. Should you wish to upgrade your property, the kitchen and bathrooms, generally speaking, add the most value internally. Further to this, a private swimming pool, patio and/or a well-landscaped garden is always better than a sandpit. It’s important to note that cost does not necessarily equal value as everyone has different tastes and preferences. Also, note that furniture is not included in a typical mortgage valuation.One step further would be to highlight the benefits of a property when compared to similar properties in the neighborhood. A list of any upgrades, renovations, and maintenance not easily seen can help the valuer build a better picture. Also, it’s worth highlighting the community/building facilities and amenities.  If you are the type to leave nothing to chance, you can also do your own research on the community and get the details of any recent, comparable transactions in the area to support the valuation. You should approach your role in the valuation as helping the valuer see the benefits of the property.If you are looking for an independent and impartial valuation on a property, book a consultation with one of our Chartered Surveyors.    

Financing a commercial property through a loan can be challenging, with most people, therefore, opting to pay for their property in cash or through other financing options. With that being said, a commercial loan is possible and is a completely legitimate way of purchasing your property. Before deciding to apply, there are some aspects of this type of loan that individuals should know. Commercial loan rates are highly variableWhilst interest rates on commercial properties are generally higher than that of a typical loan, they are also highly dependent on the client’s personal circumstances as well as the property that they wish to secure a loan on. Individuals should also be aware that there can be hefty prepayment penalties if you are in a circumstance to repay your commercial property loan before its completed term. As such careful thought should be made about creating reasonable timeframes for your loan repayment, factoring in both high-interest rates and prepayment penalties.Certain factors that can come into play include the property developer, the age of the property, as well as whether the property is going to be used as an investment or if it’s for the client’s company. The loan to value rate should also be taken into consideration, as for commercial properties, they can be very low, with most banks generally requiring a 40% down payment. Study the market Before deciding on purchasing a commercial property, individuals should study the market carefully. Firstly, you should understand what type of property you want. The commercial property encompasses a wide range of building and property types, including office space, warehouses, retail units, or even purpose built properties such as schools or hospitals. Potential buyers should carefully consider the reasons for choosing a commercial property. Will you be the end user or are you planning on using the property as an investment opportunity. It is important to also research different locations and compare average prices. This can be done by looking at commercial real estate market reports or by discussing them with a commercial property specialist. Before starting any finance application, you should determine what you are willing to pay and how much you are willing or able to part with in terms of loan repayments. This may also help decide what type of property and areas are available for you to purchase into. Find a broker experienced with commercial real estateA broker experienced in commercial real estate will help their client evaluate their different options, help them make an informed decision about what they should purchase as well as applying for a pre-approval on your behalf with the bank. Not only would an experienced broker ensure a faster application process with the bank, but will have much greater negotiating and bargaining power when it comes to discussing the terms of the loan. Inform the bank of your choice Once you have secured pre-approval with your mortgage broker,  and decided on a property, the bank will then perform a valuation of the property and decide if it is worth the price you have agreed. Provided the bank approves, you will then get an offer letter to accept the loan and you can proceed with purchasing your commercial property. If you have any other questions or queries about getting a commercial loan, then contact one of our expert advisors, who will be able to talk you through the entire process and make it as smooth and seamless as possible.    

When thinking about investing in property, people’s mind generally goes straight to villas and apartments. With that being said, investors are increasingly turning to commercial real estate which is becoming a more viable option for potential buyers. Whilst commercial and residential are both types of property, there are several key differences between them. Investment in either necessitates a solid understanding of the nuanced market factors at work, the differences in financing requirements, property management options, leasing arrangements, and a good understanding of the associated risks and drawbacks. Property types Commercial property generally refers to all real estate that is used for business or commercial purposes. This encompasses everything from office space to retail units as well as specialised property such as hotel apartments, industrial warehouses, or any other establishment where a company operates or is used to generate income. With commercial property encompassing a wide range of unit types, each with its own capabilities and benefits, it is important to understand the difference between them as well as how they can each generate an income. Office space, for instance, will generate revenue and be priced differently to a warehouse or retail unit of a similar size. Different premises require different licenses; as such, it is essential to know what type of property you wish to buy and lease, the necessary licensing it requires, as well as understand the rental possibilities for that unit. Financing Securing a commercial loan is significantly different than a residential mortgage. Commercial units tend to require a more extensive initial investment not just because they are more expensive and have higher market entry points but also because they can be harder to finance. In general, it is easier to get a residential mortgage than a commercial property loan. The loan to value rate should also be taken into consideration, as for commercial properties, they can be very low, with most banks generally requiring at least a 40% down payment. Investors should also take into account that interest rates on commercial properties are generally higher than that of a personal loan or mortgage. Whilst financing a commercial property is certainly possible, this option should be thought of carefully if your purchase is intended to be an investment opportunity. Property value The market price of a residential property is generally determined through supply and demand as well as the key property features, i.e. the number of bedrooms, bathrooms, and the amount of living space. However, determining the value of a commercial property is very different. While location and property features play a role, the primary determinant of a commercial property’s value is calculated by looking at the amount of revenue it can/will generate. As such, it can be easier to increase the value of commercial premises by making strategic decisions that will increase the amount of income the property can make. This might involve subdividing or enlarging the unit, improving the properties appearance, or changing its use, i.e. changing a unit designed as a supermarket into a restaurant. Rental income Another key difference between commercial and residential real estate is the differences in rent, both in terms of the amount, as well as how it is structured. Rent for residential properties is agreed at a set amount and is paid at set times, i.e. monthly. Rent for commercial property, on the other hand, can be handled in different ways. The first is the most simple, a fixed rent for a specified number of years. Another way that rent can be structured, is through a smaller fixed rent plus a percentage of turnover. This can be a lucrative option, although the landlord should do their due diligence and be confident of the tenant’s performance financially.  Investors will generally find that commercial properties will have a better ROI as rental yields tend to be a lot higher.Financial security Another key difference between residential and commercial properties relates to the length of the leasing contract. Commercial real estate generally enjoys much longer lease terms. While a contract for a residential unit tends to lasts a year, companies can sign a leasing agreement for up to 3-5 years at a time. This allows investors with greater security, with a guaranteed income for a longer period of time. The flip side to this, is that commercial properties can also have much greater vacancy periods. While residential properties may only take a matter of weeks to be rented out, commercial properties can potentially take up to a year or more, which is why tenanted properties can sell at a much higher price than vacant ones. This is something that should be taken into account when considering investing in a property.Commercial property is more elastic, meaning they are very price sensitive to market conditions. Potential buyers should be aware that residential property generally performs more consistently during economic downturns, whilst retail units and off plan properties are usually the first property types to suffer. With that being said, with residential properties being relatively inelastic, it can take longer for investors to get the same returns. Following the 2008 market crash, it took a long time for the residential property market to fully recover. With commercial property, there tends to be larger fluctuations in market prices and trends, such as the increasing prevalence of e-commerce which has had an impact on commercial property prices. Although this trend may result in a shift in demand for retail units, it is causing a surge in demand for other types of commercial properties. Compared to traditional brick and mortar stores, e-commerce is a more labour intensive process requiring more warehouse space, which may signal a trend towards more logistics based commercial spaces. We have also seen that with the increasing trend of working from home, commercial office space is heading more towards more premium units in higher quality and more strategic locations, with an added focus on employee satisfaction. This demonstrates that commercial property is a solid investment option, so long as the buyer looks at the current market conditions and makes an informed decision about where and how to invest. (Take a look at our 2021 Q1 report which provides a more in depth insight into the current market trends).  Tenant behaviourWith commercial property, landlords deal with a company rather than an individual. As such the relationships tend to be more professional, with both parties seeing the process as more transactional. With business being the primary objective of both parties, it can make the relationships more efficient. What’s more, commercial landlords tend to have more protection under the law if the tenant fails to meet their contractual obligations, giving the landlord an added layer of security.Residential real estate can typically be considered higher maintenance and more hands on than commercial properties, and as such commercial properties are generally easier to manage. In a commercial property, day to day maintenance issues are usually handled by the tenant. Further to this, companies typically operate normal working hours, and as such any issues that may arise with the property is handled within a working week and during the day. With residential, on the other hand, landlords can expect to be called at any time on any day.  This is definitely something to consider if you are aiming to make property investment a primary income stream or if you are planning on buying multiple units. If dealing with multiple residential properties, investors may want to consider employing a property management company to deal with maintenance issues, something that may not be required for commercial properties. A commercial property investment may seem like an intimidating prospect, however the rewards can outweigh the risks. Whilst it is important to understand that investing in commercial property is not the same as investing in residential, both have risks and benefits associated with them. Before deciding to make an investment in commercial real estate, it would be a good idea to sit down with an experienced commercial broker or specialists in commercial property investment. A good broker will talk you through your different options and aid you through the buying process. For more information about property investments, please contact our team or check our properties available for sale.  

With work taking up such a big part of our lives, it is important that we find a space that we enjoy and can be our most productive. With the rise of smaller companies and freelancers coming to Dubai, so is the popularity of coworking spaces. As such, some of these spaces are going the extra mile to stand out from the crowd. Here are our top picks for coworking spaces in Dubai. NasabNasab is a luxurious, members-only workspace that has a focus on creativity and wellbeing. This high-end business club features a gym, two swimming pools, a photography studio and a variety of food and beverage outlets, which help to ensure a relaxing and luxurious work experience, allowing leisure and work to intertwine. Nasab also hosts regular events, workshops and discussions that help foster a collaborative and social environment, perfect for learning, networking and meeting like-minded people.  A4 Alserkal AvenueA4 is a free to use co-working space in the centre of Dubai’s trendy and artsy Alserkal avenue, with an industrial, yet warm aesthetic. The cosy space offers free wifi, a cinema room, a cafe and a little hideaway on the mezzanine floor called The Loft, perfect for tucking yourself away when you need a break and read a book. This space is perfect to meet and get inspired by other creatives, with the venue putting large effort into giving the place a community spirit, with collaborative work encouraged.  Space is also host to regular workshops, and brainstorming sessions.  Youth Hub XYouth hub came about due to the idea that young people are able to develop and design problems to the world’s biggest challenges. It was therefore decided to create a central forum for them to connect with each other and share ideas. As such it offers a supportive business environment and coworking space for younger entrepreneurs and business owners. Targeted at 15-35 year olds, the hub offers not only space for its clients to work, but also constant guidance and business support. DTECDTEC is a technology and innovation hub that offers clients not only a space to work, but a whole range of business amenities, including wifi, meeting rooms, and even a games room. The space offers full business set up, visa processing as well as access to a vast network of mentors, advisers, and educators, with many receptive to collaboration, pitches and investment opportunities. The hub offers Flexi desk, fixed desk and private office options for their clients, at varying different price points, as well as options to book out conference and meeting rooms. DTEC has everything a budding entrepreneur or business owner will need to launch and grow their business  

The UAE and the rest of the world faced a tumultuous year in 2020 as everyone struggled in the face of the coronavirus, and both the health and economic adversities it brought. Dubai saw an economic decline in 2020, with both oil and non-oil sector GDP declining in real terms, however, the rate of decline reduced towards the end of the year. The UAE, like other GCC countries, faced both sharply lower than expected oil revenue in 2020 in addition to the impact of the coronavirus on the non-oil sectors. Due to the global lockdown demand for oil dropped dramatically, meaning cuts in oil production were necessary. With that being said, the price of oil did increase and stabilise throughout the second half of 2020, with price starting to rise again by the end of the year. Oil prices saw a sharp increase in 2021, providing a positive outlook for the economy. ADNOC will spend $122 billion over the next five years to help boost its capacity to 5 million barrels a day by 2030 from around 4 million now. Last year, the UAE was at odds with OPEC, arguing against the steep cuts to oil production.  Despite this, Abu Dhabi is taking the initiative and working through the downturn to expand its ability to pump crude oil,  with the Emirate announcing earlier on in the year that they have awarded Japan’s Cosmo Energy Holdings Co. the right to explore for offshore oil and natural gas as the UAE seeks to expand its output capacity. Yet despite these promising outlooks, it has been said that it is unlikely that oil activities will be able to return to pre-pandemic levels for 2 years at least. The pandemic significantly impacted the real estate market in Dubai, which was disrupted with the lockdowns, restrictions, and the growing trend of working from home. Recovery in the commercial market was slightly slower compared to residential real estate, but it has also enjoyed a boom towards the end of the year. The fact that the total value of commercial units has decreased will likely mean that investors looking to take advantage of the economic situation will make 2021 a good year in terms of the number of transactions. This can be seen from the fact that despite buyer leads seeing a year on year increase of 79% throughout 2020, this was not reflected in the number of transactions. This might indicate a growing interest in purchasing a commercial property, with buyers waiting for 2021 to see what happens in terms of the economic situation. Whilst it is undoubtedly true that the UAE and the rest of the world will need time to recover from the unprecedented events of 2020, from the onset of the pandemic, the UAE Government took great strides in monitoring market conditions and went to great lengths to ensure a quick resumption of economic activity. The UAE introduced a strict lockdown in March of last year in the interest of public safety. Whilst the decisive measures by the government last year meant business activity was strictly limited, during the period between March and October this year, the Government of Dubai launched four stimulus packages worth Dh6.8 billion to mitigate the impact of these measures and to reduce any repercussions in the form of job losses or disruptions to businesses.In late 2020, we saw the government introduce a number of new laws that promoted the country as a pro-business environment with Dubai ranking third in the latest Global Cities of the Future list compiled by FDI Intelligence, which measured foreign direct investment flows across the world. From announcing that foreign nationals can now have 100% business ownership to the introduction of work from home visas that allow expats working abroad to live and work in Dubai, it is clear that the government is going to great lengths in cultivating an attractive location for businesses. Another initiative that the government launched was the Virtual Company Licence, which allows global businesses to access a regulated e-commerce platform populated by Dubai-based companies, while also exploring new markets and investment opportunities digitally. The introduction of trade relations with Qatar and Israel will also open the doors to new markets and will continue to encourage business and trade. Whilst it is too early to tell about the success of these initiatives, 2021 had a promising start in terms of business, with a 9% year on year increase in the number of business licences issued by DED. January also saw Dubai’s private sector returning for the first time in 12 months particularly at the entry level, as companies expressed optimism toward future business. With UAE’s fast rollout of the Coronavirus vaccine, the launch of Dubai Expo expected later in the year, as well as the country’s economy looking to grow 1.3%, according to the IMF  this renewed business activity looks to be just the start of a successful year for the UAE.  

 A coworking space, in essence, is a collaborative working environment, wherein freelancers, small companies, or start-ups are able to work independent of each other, whilst being able to share the same services. Types of coworking spacesIt is important to note there are different types of coworking spaces that suit the needs and requirements for different people. ConventionalWhen thinking of coworking spaces, this is often what comes to mind first. Conventional or open workspaces are typically not geared towards a specific type of organisation or company but rather focuses on creating a shared, open and collaborative environment, in which freelancers and different types of companies from a range of different sectors are able to conduct their business from.  High-End/Full-ServiceThese usually have higher quality and a broader range of amenities than a conventional workspace may have, with a higher focus on offering luxury and convenience for the people that work there. Whilst they may offer more services, this means that this type of coworking space often comes at a much higher price than their ‘conventional’ counterparts. Corporate/ProfessionalThis type of workspace caters to more corporate clientele rather than ‘energetic’ start-ups that put a higher emphasis on collaboration. Therefore they offer a more private and usually quieter setting that might conventionally be considered more professional. They are also a cheaper alternative to the high-end workspaces, so are a good fit for smaller companies. A good example of this is OpenHub, a professional coworking space based in Dubai. MinimalMinimalist or ‘bare-bone’ coworking spaces places a high priority on affordability. They usually offer just the basic services, such as wifi, electricity and water, and have very basic and minimal furniture. This is a good option for individuals and freelancers who do not require much in terms of services.Industry-Specific/SpecialisedThese are usually niche working spaces that only allow companies or individuals working within a particular sector to work. As such these spaces tend to cater to specific demands of that industry. Specialised workspaces might include healthcare specialists, law firms, or even creatives and artists. This allows for and encourages much greater inter-company collaboration.   IncubatorsIncubators are often reserved for start-ups and new companies, so, therefore, cater to smaller companies that are more budget-conscious. Incubators sometimes offer business guidance, funding as well as networking opportunities, which help businesses to grow. What are the advantages? It makes quality services more affordableCoworking spaces allow those that have a smaller budget to have access to amenities and services that would otherwise be unaffordable. Even the most basic coworking spaces offer pantry space, wifi, receptionists, and printing services, whilst some of the more high-end spaces can provide access to expensive industry-specific equipment, boardrooms and meeting rooms. It allows much greater flexibilityFreelancers and small business owners often do not have the budget, resources or the need to commit to a long term contract for an office space. Coworking spaces can often be booked on a short term basis, allowing the individual to have much greater control over the spaces they have. This is especially the case with smaller companies who may be undergoing rapid expansion, and so can take up more office space as and when their business requires it. Offers networking and collaborative opportunities One of the greatest benefits regarding coworking spaces is the collaborative environment they foster. Sharing big spaces with other likeminded individuals can help spark greater innovation, as well as afford them priceless networking opportunities, which can often lead to inter-brand collaborations. Especially in the case of start-ups, these collaborative environments can help kickstart the company’s growth and development.  Who uses them? Coworking spaces are used by a wide range of different individuals and companies.Many start-ups, small businesses and freelancers enjoy coworking spaces as it allows them to utilise resources and receive services and amenities that would otherwise be unavailable or too costly were they to have their own office unit. Further to this, anyone wishing for more flexibility when it comes to work can benefit from using a coworking space. They are a great way to foster creativity, new ideas and a collaborative environment.