Imagine this: It’s May 2025. Your major hotel project in Dubai is ready for launch, and you’re counting on essential bank financing—only to be told your funding is on hold. Why? Your property's valuation report was prepared by an affiliate firm, which now fails to meet the UAE's new independent valuation requirements. Your project, and business reputation, now hangs in the balance. 

Far-fetched? Not at all. For MNCs, developers, and large businesses in the UAE, this scenario is no longer hypothetical. With new property valuation regulations, lending compliance has evolved from a box-ticking exercise into a survival issue. 

In this guide, we’ll dissect the UAE property valuation 2025 landscape, explore the real threats and opportunities, and show how a proactive approach can turn these challenges into a competitive edge. 

Understanding the 2025 UAE Valuation and Lending Landscape 

Why has valuation become the crux of bank lending in the UAE by 2025? 

• Regulatory Overhaul: As of August 2025, enhanced real estate laws in Abu Dhabi and Dubai require independent, accredited valuations for key property transactions—especially for financing and loan security purposes. 
• Deadline Pressure: The UAE Central Bank’s new framework comes with a strict deadline. After a prudential observation period (with compliance phases initiated from late 2024), banks will face increased capital requirements and risk weighting for real estate exposures lacking compliant, independent valuations. This will lead to significantly tighter lending conditions or potential refusal of new facilities. 
• Ecosystem-Wide Impact: The framework covers all on-balance-sheet loans and off-balance-sheet exposures linked to real estate. That includes everything from small housing loans to major commercial project finance. 
• Global Alignment: The laws align the UAE market with global best practices, following the example of leading jurisdictions, enhancing both credibility and investor confidence. 

Recent Evolution Timeline: 

• Q4 2024: Law amendments announced; regulatory bodies and banks begin streamlining internal valuation protocols. 
• December 2024: CBUAE’s new real estate exposure rules come into effect, triggering a one-year grace period for compliance. 
• August 2025: Abu Dhabi’s Law No. (2) of 2025 strengthens regulatory oversight of real estate activities, including surveying and valuation, by mandating licensing and transparent reporting. This underscores the increasing importance of accredited valuer involvement for property assessments in the Emirate. 
• July 2025: Ministerial Decision No. 173/2025 formalizes tax treatment for Investment Properties held at fair value, allowing for a deemed depreciation deduction for Corporate Tax purposes. This provides a clear tax benefit for entities aligning their accounting with fair value principles. 

Key Regulatory Features: 

• Introduction of licensed/accredited valuer requirements for property assessments. 
• Mandatory interval for revaluations (often every 12 months). 
• Banks facing increased risk weighting for non-compliant valuations may refuse new loan applications, limit financing, or impose higher costs, going beyond simple administrative fines on the bank. 
• Oversight and appeals channels via the Abu Dhabi Real Estate Centre and the Dubai Land Department. 

Common Challenges and Business Pain Points 

What hurdles are businesses in the UAE market facing as 2025’s valuation deadline approaches? 

1. Compliance Complexity 

• Understanding the shifting web of tax, lending, and property registration rules has become a key headache. The new regulations are rigorous—lenders must ensure valuations are conducted by truly independent, accredited third parties, not in-house or affiliate firms. 

2. Increased Transaction Friction 

• Projects in both Abu Dhabi and Dubai have reported delays in loan disbursal and property transfers owing to incomplete or outdated valuation reports, especially for off-plan and newly developed properties. 

3. Cost and Expertise Barriers 

• Accredited valuations incur additional costs—application fees (e.g., AED4,000–10,000 per property), mandated document packs, and periodic reassessment. Smaller firms and first-time investors face cash flow pressures. 
• Finding value capacity is an issue. The rush to compliant reporting has caused bottlenecks at licensed valuation firms and government departments, as seen in reported delays in Golden Visa-related assessments. 

4. Project Financing Threats 

• Financing can stall or be lost entirely if a borrower’s property cannot be valued by regulators and lenders. Cases have emerged in Q1 2025 where significant projects faced delays or temporary holds on funding due to an inability to secure compliant independent valuations. For one major developer, this led to a 15-day delay in a AED 50 million loan disbursement, resulting in substantial holding costs and operational disruptions. 

5. Operational Uncertainty 

• Developers expanding portfolios or rolling out phased launches are seeing internal planning disrupted due to unpredictable valuation result cycles. 

Trends and Innovations Shaping the Next Phase 

As regulations drive new pain points, they are also fueling much-needed change: 

• Standardization and Digitalization: 
  • Platforms like the Dubai REST app now offer instant market value estimates, supporting both rapid compliance and investor confidence, while reducing opacity in residential and commercial valuation. 
  • Real-time integration with mortgage and registration systems means property data is becoming more transparent, reducing the scope for valuation disputes. 
• Accredited Valuer Networks: 
  • Major banks and consulting groups have begun creating networks of “fast-track” accredited valuers, benefiting businesses with streamlined access and lower risk of bottlenecks. Still, the shortage of qualified independent assessors remains a risk, especially for complex/hospitality assets. 
• Regulatory Guidance: 
  • Abu Dhabi’s new real estate laws now require dedicated valuer licensing, register transparency, and specialist training. Dispute-resolution mechanisms have also become clearer and more accessible—a step forward in protecting both lender and borrower. 
• Tax Incentivization: 
  • Under the 2025 Ministerial Decision, properties recorded at fair value (not just historical cost) can qualify for depreciation allowances, supporting advanced planning for tax, IFRS, and investor reporting—an incentive for prompt compliance. 

What’s the downside? 

• Bottlenecks are already forming, and regulatory “grey areas” remain, especially where off-plan or phased projects intersect with lending or Golden Visa assessments. Some experts warn that, unless the valuer network scales rapidly, a segment of the housing/project finance pipeline may slow down—especially for SME or non-prime developments. 

Practical Strategies for Navigating UAE Valuation Compliance 

Success hinges on a proactive and tailored approach: 

Step-by-Step Roadmap: 

1. Audit Your Portfolio: 
   Review all properties linked to lending or tax reporting—ensure independent, current valuations are in place or scheduled. 
2. Engage Accredited Valuers Early: 
   Work with networks or directly with government-approved professionals via the Dubai Land Department or Abu Dhabi Real Estate Centre before applying for loan facilities or refinancing. 
3. Centralize Documentation: 
   Keep all required documents ready: property deeds, municipality maps less than 12 months old, tenancy contracts, financial statements, and No Objection Certificates as required. 
4. Stay Abreast of Regulatory Updates: 
   Assign internal compliance or work with specialized advisors for real-time update tracking via platforms like ASC Group’s regulatory tracker or government portals. 
5. Incorporate Valuation Schedules: 
   Factor regular (often annual) revaluations into financial planning, especially for assets critical to ongoing credit facilities. 
6. Leverage Advisory Support: 
   Engage consulting and assurance firms with regional experience for audits, efficiency upgrades, and strategic negotiations with lenders. 

Checklist Summary: 

Need sector-specific help? Contact ASC Group’s UAE compliance experts for an audit of your current valuation and bank lending risk. 

Key Takeaways: UAE Property Valuation & Lending Compliance 2025 

• Mid-2025 Shift: UAE banks will increasingly impose stricter lending conditions, higher risk weights, or potentially refuse new facilities for properties lacking compliant, independent valuations, under evolving real estate and banking regulations. 
• Widespread Impact: Applies to all major loans, project finance, and Golden Visa-linked transactions. 
• Business Risk: Delayed or non-compliant valuations can halt funding, trigger fines, and damage investor trust. 
• Strategic Opportunity: Early compliance allows firms to access tax benefits, reduce audit friction, and maintain financing continuity. 
• Immediate Action Required: Review current property portfolios, engage accredited valuers, and implement compliance schedules now to avoid regulatory disruptions. 

A Bold New Era—Or a Risk of Stagnation? 

As we approach the valuation deadline, the message is clear: independence and compliance are no longer "niceties" in the UAE. They are the bedrock of business continuity and access to capital. For those who act early, these evolving standards are a catalyst, not a constraint. Businesses that embed robust, accredited assessment frameworks will benefit from sustained funding access, greater investor confidence, and reduced friction in projects and acquisitions. 

For those who delay, significantly tighter lending conditions, potential denial of new funding for non-compliant assets, missed launches, and reputational headaches may soon be the new cost of inaction. 

Want to safeguard your projects and tap into leading-edge banking and advisory resources? 

Contact ASC Group for a free property valuation compliance audit, or download our UAE property assessment checklist today.