RERA Property Valuation and Market Analysis 2

Question 1

What is the difference between gross yield and net yield in Dubai property investment?

Accepted Answer

Gross yield is annual rent divided by property price; net yield deducts expenses (service charges, maintenance, vacancy) from annual rent before dividing by total investment cost

Answer

They are the same thing

Answer

Net yield is always higher than gross yield

Answer

Only gross yield matters for investors

Question 2

What are the key property market cycles that RERA brokers should understand?

Accepted Answer

Recovery, expansion, hyper-supply, and recession phases that affect pricing strategies, investment timing, and client advisory

Answer

Dubai property prices only go up

Answer

Market cycles do not exist in Dubai

Answer

Only one cycle has occurred in Dubai

Question 3

How should RERA brokers conduct a comparative market analysis (CMA)?

Accepted Answer

Analyze recent actual transaction data, adjust for property differences (size, floor, view, condition), consider current market conditions, and use DLD transaction records

Answer

Just use listing prices from property portals

Answer

Copy competitor pricing

Answer

Use only one comparable property

Question 4

What are the key areas where foreign investors focus in Dubai real estate?

Accepted Answer

Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JBR, Dubai Hills, and emerging areas like Dubai Creek Harbour and MBR City

Answer

All areas are equally popular

Answer

Only Downtown Dubai

Answer

Foreign investors cannot buy in specific areas

Question 5

What is the impact of Expo 2020 legacy on Dubai property values?

Accepted Answer

Enhanced infrastructure, new communities (District 2020), improved transport links, and increased international visibility have positively influenced property values in surrounding areas

Answer

No impact on property values

Answer

Only affected Expo site properties

Answer

Property values decreased due to Expo

Question 6

What role does the Dubai metro and transport infrastructure play in property valuation?

Accepted Answer

Properties near metro stations typically command 10-20% premium, and overall transport accessibility significantly influences both rental and capital values

Answer

Transport has no effect on property values

Answer

Only affects commercial properties

Answer

Metro reduces property values due to noise