We valued a freehold prime residential tower for a commercial bank for the market value of AED 321,700,000.
The property comprises 147 apartments built over Basement, Ground and 32 floors. The ground floor accommodates reception, restaurant, laundry shop and ATM room. The top floor houses health club facilities. Its land plot size is 3,983 square meters (sqm). Its built-up area is 39,950 sqm. The building is 5 years old. It is in a very good condition.
The property is leased to individual tenants on annual basis. It is 95% occupied.
We examined the title deed, built-up areas and leasable areas, floor plans and rental income by category of apartments.
Complying with RICS and IVS Standards, we applied Income Approach – Direct Capitalization Method to provide the market value the property. A market driven capitalization rate was factored for estimating the market value.