Property Valuation in UAE — Complete Guide

## Three Types of UAE Property Valuation ### 1. ADREC Valuation (Abu Dhabi) ADREC (Abu Dhabi Real Estate Centre) operates the Madhmoun system — Abu Dhabi's official automated valuation model based on registered transaction data. ADREC valuations are: - Mandatory for Abu Dhabi property transfers (used to calculate the 2% ADM registration fee) - Used by Abu Dhabi banks as the basis for mortgage valuations - Generated through the ADREC portal by registered valuers - Generally accurate for established communities with sufficient transaction data The ADREC Madhmoun system uses algorithmic valuation based on recent comparable sales, adjusted for floor level, view, condition, and building factors. For less-traded properties (large villas, unusual units), Madhmoun valuations can be conservative. ### 2. RERA-Approved Valuer Report (Dubai) Dubai uses private RERA-approved valuation firms (CBRE, JLL, Cluttons, Asteco, and others). These are required for: - Mortgage applications (bank commissions the valuer, buyer pays fee of AED 2,500–6,000) - DLD dispute resolution - Court proceedings - Certain off-plan resale transfers The RERA valuer inspects the property and produces a formal report. Turnaround: 3–7 business days. Bank receives the report directly; you receive a copy. ### 3. Agent Comparative Market Analysis (Both Emirates) For the purpose of setting a sale price, agents conduct a comparable market analysis — reviewing the last 3–6 months of RERA/ADREC transaction data for similar properties in the same building and community, adjusting for floor, view, condition, and furnished/unfurnished status. This is not a formal valuation report but is the most practical tool for pricing a sale. District Real Estate provides free CMAs for any property we are advising on. ## How to Get an Accurate Valuation for Sale 1. Ask your agent to pull ADREC (Abu Dhabi) or DARI/DLD (Dubai) transaction data for your building, filtering by bedroom count and floor level, from the last 6 months 2. Request comparable listings currently active to understand where buyers are searching 3. Adjust for your unit's specific attributes: view, floor level, condition, furnishing 4. Price within 5% of comparable completed transactions — not 15–20% above hoping to negotiate down ## How to Get a Mortgage Valuation The bank orders the valuation from their approved panel. You cannot instruct the bank's valuer directly. Pay the valuation fee (AED 2,500–6,000 in Dubai; AED 1,500–4,000 in Abu Dhabi for ADREC-approved valuer). The valuation takes 3–7 working days. If the bank valuation comes in lower than the agreed purchase price, the mortgage is based on the lower valuation figure — you must make up the difference in cash. This is called a valuation shortfall and affects approximately 15% of Dubai mortgage transactions. ## DRE Advisory Note Before accepting any offer, District Real Estate provides sellers with a full transaction data analysis from ADREC/DARI for their building. This ensures pricing is anchored to actual market data, not aspirational asking prices on portals.