Valuation And Pricing

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    Property valuation has been practiced since private ownership had been found,  estimating the value of a property is necessary to calculate the benefits of acquiring/disposing/investing/ a property.

    For many other reasons, this tool is essential even for governmental reasons, such as estimating the future return of a piece of land or a workshop  or any other property to define the governmental taxes and acquisition of duties; estimating the value of an asset for inheritance reasons.

    The huge diversity of location features, property specifications and utilities made each property has unique characteristics which directed the valuation activities and process to be much more careful and professional in order to correctly estimate: the fair market value in a competitive open market.

    Property Valuation can be defined as the current worth of a future estimated benefits that came from the acquisition or a disposal of an ownership of a certain property.

    Each asset has its own unique characteristics so estimating the value of the property depend on several elements as follows:

    • Location; the neighborhood surrounding the property area, its residents, their behavior], and activities. It is vital to consider: the social level and socio-cultural threats of population and its effect on the value of a property; the area density; infrastructure; accessibility; traffic and other similar elements.
    • Floor plan: every property has a distinguished floor plan in the same building, as well as space usability, geometric structures, height and view that would give an advantage or disadvantage for a property.
    • Legal documents and ownership: there are many types of ownership that can describe the right of the property owner in benefit from a place such as full ownership, temporary ownership, usufruct, full registered documents, usage licenses, old rental contracts or partial registration that affect widely the price/value of a property.
    • Utilities and amenities: electricity, property age, drainage network, water, gas, property status, pools, landscape, security, etc highly affect the value of rent/sale of a property.
    • ROI: a number of properties gets their value from its returns specially in commercial units, retails, factories and warehouses. The volume of return has to be calculated correctly putting in consideration the value of running cost, depreciation of utilities, property taxes and internal rate of return (IRR) and future value of the property returns and annual increases.
    • Social and economic trends: the value of a property is directly affected by the state of the country or regional economy as the value of the property  is a snapshot of time benefits and is sensitive to the changes in interest rates, taxes, different new governmental regulations and social transformation. An evaluator should give attention to the market trends to address the fair value.
    • Demand: the main reason of valuation practices is to define a price that can possibly lead to sell the property and regardless of the value concluded for the property, the real determinant is if the current market demand will absorb this property price or not.

    Get your property valuated today by true real estate experts.

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