Valuation accuracy: A critical commentary on the availability of real estate market information in Dubai (United Arab Emirates)
||Valuation accuracy: A critical commentary on the availability of real estate market information in Dubai (United Arab Emirates)
||19th Annual European Real Estate Society Conference in Edinburgh, Scotland
||The issue of valuation accuracy is important for property professionals and investment analysts, particularly given the recognition that real estate has now become a major global asset. Property valuations are a significant driver in investment and broader purchasing decisions, both through market transparency and consumer confidence. There is increasing institutional, legal and professional acceptance that valuation uncertainty exists and persuasive grounds to expect its presence (RICS, 1997; Bowles, McAllister and Tarbert, 2001). Values can be difficult to assess due to different concepts of value, its inherent subjectivity and the heterogeneity of property. That said, inaccuracy or ‘valuation bias’ can be exacerbated with the addition of uninformed local practices or mis-information and lacking transparency (market efficiency). Addressing the latter, a large and increasingly reliable database has been established via the Information Property Databank (IPD) to serve property professionals in mature markets, namely the United Kingdom (UK), the United States of America (USA) and Australia. However, limited attention has been given to examining emerging global markets. With the recent global prominence in relation to its rapid growth in both real estate development, and investment, Dubai serves as an ideal case study in which to place this PhD research. In the preliminary stages of this PhD research, the author is seeking to examine the extent of valuation error introduced by not adopting standardized features within its market, including that of property market information. Recent research including that of Dunse, Jones & White (2010) supports the premise of this research in that “valuation accuracy is a function of information availability”¯ The research findings presented in this discussion paper seek to explore the perception of valuation accuracy in the market place and establish a theoretical response to the availability of real estate market information in Dubai’s/United Arab Emirates’ (UAE) Real Estate Sector. Key observations borne out from this research include that the lack of information flows within Dubai’s real estate industry and the high levels of secrecy surrounding the sharing or pooling of market data amongst firms and practitioners. Furthermore, the main provider of real estate information, REIDIN, has been reported as being fundamentally flawed and lacks the credibility of information sources available in more mature markets.
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||PhD Poster Session
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