Answers
What happens if the valuation is lower than the price?
A short answer, with the article it comes from.
The answer
The bank lends against its valuation, not the price you agreed. The Central Bank defines loan to value against the appraised value of the property and requires an independent valuation before any commitment to lend, so if the valuation comes in low, the gap is added to the cash you need.
CBUAE Circular 31/2013 Articles 1, 2.5 and 3.2, checked 2 October 2026.
Article 1 of the circular defines loan to value as "the ratio of the amount of the loan outstanding to the appraised value of the residential property". Article 2.5 requires "an independent on-site valuation of the property" by "a professional third party who is suitably qualified and independent of the borrower, seller, developer/contractor and the loan decision process", drawn from a board approved list.
A valuation may not build in growth: appraisal reports "should not reflect expected future house price appreciation". In a rising market, a valuation can therefore trail the asking price.
An example. On a price of AED 2,000,000 with a valuation of AED 1,900,000, an expatriate buying a first home can borrow up to 80 percent of AED 1,900,000, which is AED 1,520,000. The deposit becomes AED 480,000 rather than AED 400,000, before fees.
A low valuation can force a purchase to be restructured, and it is better known before you sign than after. A specialist can tell you what your options are if the figure comes in short.
Rules are the easy part. Your file is the question.
Worried a valuation will come in short? Talk to a Specialist before you sign.