We performed a portfolio valuation of 199 properties across 4 cities and 42 townships financed by a commercial bank. The purpose was to mark to market the bank’s lending exposure.
The portfolio included 106 residential properties (69 villas, 20 building, and 16 compounds), 26 commercial properties (office buildings, 3 hotels, and 9 other commercial/retail properties), 38 land plots, 25 properties under construction, 3 public service properties, and 1 mixed used property. We inspected all properties over 2 months.
Total estimated market value of all properties was in excess of AED 8 bln (USD 2.4 bln).
Each property was valued individually using appropriate valuation approach and as per RICS standards. We applied market approach for common residential lands, houses and apartments with necessary adjustments, income methodology for residential and commercial properties, and profit valuation approach for trading properties.
The report also covered
- General economic overview of the country and various towns.
- Real estate market overview per property type and related neighborhoods.
- Current market prices, rents, risks, and yields per type of property.
- Real Estate market outlook including major upcoming developments.
- Management Analysis detailing the estimated market values of the properties by owner (including 10 large exposures), property type, development type, and location of the properties.
- Valuation of individual property.
The report also clearly stated key observations, analysis and assumptions made on both individual property and portfolio levels. We used documents and information provided by stakeholders (bank and owners), real estate transactions data provided by the Ministry of Justice, Land Department, market comparatives, and our internal market database.