If we talk about Dubai, the emirate has recently gone under a lot of fiscal pressure and more or less it’s continuing till date. In these turbulent times it’s hard to evaluate the estimation of a property or for that matter evaluation of any real estate assets; however, it can only be done by a good common sense. The market is moving quiet fast and a huge gap exists in the owners and buyers perceptions of values.
Generally, if we talk about evaluation of a property it is mainly about hard data used to arrive at an ultimate figure, however, several different methods can be adopted that gives varying results. It is basically the matter of asset valuation. The evaluation professionals in the UAE are concerned, that the report generated by them is later misused for a different reason by their clients which inevitably distort the actual price.
The discounted cash flow technique allows for accurate results by taking future income potential into account. The final valuation figures can change the more eventualities are taken into account. It changes by up to 30 percent or less than that. As far as any property is concerned, it may haven been rented over or under and for which the cash flows, future discounts and other depreciation factors to be taken into account. It is always good to verify figures and not to escalate the risk factors as different markets can view this differently.
Investment evaluation is not just figures but it required much more than that, however it completely depends upon where the market is heading. The hardest times of these valuations are when the market goes up or it lands down.
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