Three prices of one square metre in Dubai: asking price, transaction price and bank valuation

A buyer researching Dubai listings runs into the first price early — the one the seller is asking. That is not the price that ends up in the contract, and it is definitely not the one the bank lends against. A single Dubai apartment carries three distinct figures at once, and the gap between them is not a mistake — it is a feature of how the market is built.

Three prices, three sources

• The asking price. Set by the seller or their agent, and almost always above what the unit will actually sell for: after years of a rising market, many sellers test demand with an ambitious number, expecting negotiation.
• The transaction price. The figure actually agreed between the parties and registered with the Dubai Land Department (DLD) — this is what lands in the open registry and anchors future buyers' and valuers' expectations.
• The bank valuation. A separate figure from an accredited valuer working for the lender, based on comparable registered transactions in the building and area — not on the price in this particular contract — and it can land above or below that price.

How wide the gap runs

Recent market estimates put asking prices roughly 6–9% above final transaction prices, with about 7% as a practical rule of thumb. The gap is widest on older resale units, large villas and overpriced secondary listings, and narrows close to zero on in-demand new launches where the buyer queue leaves no room to negotiate.

Bank valuation is a separate matter entirely: banks lend against their own figure, not the transaction price. Agree on AED 2 million and the valuer comes back at AED 1.8 million, and the loan is calculated off AED 1.8 million — the buyer covers the AED 200 000 gap in cash, on top of the planned down payment. The mismatch shows up most often when the two valuations are done weeks apart in a fast-moving market, long enough for the comparable transactions feeding each one to shift.

What this means in practice

Situation	What to do
Seller is asking well above registered deals in the building	Check the DLD registry before negotiating, not after the MOU
Bank valuation lands below the agreed price	Renegotiate the price, top up in cash, or exit under a financing clause if the MOU has one
Planning a golden visa at the AED 2 million threshold	Remember it is the DLD valuation that counts, not the asking price — a healthy contract price is no guarantee of clearing the bar

The gap between the three prices is not a reason to panic — it is a working tool: it shows how much room there is to negotiate and flags in advance how much cash to hold in reserve on top of the standard down payment.

For the step-by-step on checking the DLD registry, see how to check a Dubai apartment price in the DLD registry. For what protects your deposit if the bank valuation comes in low, see our guide to the MOU financing clause.