K|Wise · Glossary
Property Valuation
An independent assessment of a property's market value, commissioned by the lender. The lender uses the lower of the valuation or the purchase price to calculate the LTV.
In plain English
An independent assessment of a property's market value, commissioned by the lender. The lender uses the lower of the valuation or the purchase price to calculate the LTV.
What Property Valuation means in practice
The valuation is the bank's own view of what the property is worth, produced by an approved valuer it instructs. It exists to protect the lender, not to advise the buyer.
When the valuation and the agreed price differ, the lower figure governs the loan-to-value calculation. A price agreed above the valuation does not increase what the bank will lend — it increases what you have to fund yourself.
How it works in the UAE
UAE lenders instruct valuations from their own approved panel, and the report is typically valid for a limited period. Down-valuations are a routine cause of deals collapsing late, particularly on off-plan handovers where the price was agreed years before the property was finished.
A worked example
A buyer agrees AED 2,000,000 but the valuation returns AED 1,900,000. At 80% the bank lends AED 1,520,000 rather than AED 1,600,000, so the buyer must find an extra AED 80,000 on top of the planned deposit.
Terms that come up alongside Property Valuation
Buy-to-Let Mortgage
A mortgage used to purchase a property that will be rented out rather than occupied by the borrower. Lenders assess the deal on projected rental income alongside the borrower's personal income.
Read the definitionConveyancing
The legal process of transferring property ownership from seller to buyer, including title checks, NOC issuance, mortgage registration, and the final Land Department transfer.
Read the definitionEquity
The portion of your property you own outright — the current market value minus the outstanding mortgage balance. Equity grows as you pay down the loan and as the property appreciates.
Read the definitionEquity Release
Borrowing against the equity built up in a property you already own, usually through a cash-out refinance. Funds can be used for further investment, business, or consolidation.
Read the definitionFreehold
A form of property ownership where the buyer holds the title indefinitely. Designated freehold areas in Dubai (e.g. Dubai Marina, Downtown, Palm Jumeirah) are open to foreign ownership.
Read the definitionHandover
The point at which an off-plan property is completed and the keys are transferred to the buyer. Final mortgage drawdown on off-plan units typically occurs at handover.
Read the definition