The rapid change of property prices in Dubai is turning the art of valuation from a science into a guessing game, analysts say.
Dubai property prices have turned into a guessing game, say analysts
The downturn in Dubai has turned the science of property valuation in to something of a guessing game, industry experts said today.
Richard Paul, associate director for Cluttons in Dubai, said it was "very, very difficult" to place an exact price on property.
The old formulas simply do not work in the current market, analysts say. In many areas there are little or no recent transactions to use as comparisons. Prices paid a few months ago may not have any relevance in today's market.
David Quinn, head of Cushman & Wakefield's Dubai office, said: "Values are changing rapidly and you have to be conscious of that."
More than ever before, analysts are forced to use judgment instead of math in making determinations. It is not unusual for three different experts to come up with three different prices for a property, they say.
Clients do not always like the results, especially if the price is lower than expected.
"You have to bear in mind, are the prices achievable?" Mr Quinn said. "There is definitely denial. The shock factor is greater."