Research from Heriot-Watt University's Dubai campus has found that local property valuers are meeting international expectations related to commercial property valuations.
The findings of the research will lead to a better understanding of valuation practices in newly emerging global real estate markets.
The PhD research has provided new empirical evidence on the existence and extent of valuation variance in Dubai, a measure of the consistency of value applied by different professionals on the same property. Around 70% of local practitioners valued the subject property within a 10 percent range of each other, in line with comparable international studies.
Valuation practices in emerging markets like Dubai are changing at a fast pace, and alignment with international best practice appears the most accepted end point for new global markets.
Michael Waters, assistant professor in real estate, EGIS, Dubai campus, said, "Despite a slightly lower level of transparency in property market information in Dubai, this study highlighted the excellent levels of professionalism present within the local valuation industry.
"This is a testament to the significant development of government regulation, training initiatives and relevant professional bodies in the marketplace.”
Locally, the research has important ramifications for valuers, lending institutions and long-term institutional investors. Research that provides original observational analyses on valuation variance in Dubai will assist in relevant developments of future legislation and regulation in real estate valuations.