Market value is the estimated price a property would achieve in an open, arm’s-length sale between a willing buyer and a willing seller. It is the benchmark used to judge whether an asking price or an offer is reasonable.
Where you’ll see it
You’ll see market value referenced in valuations, bank lending, and negotiations. It is informed by recent comparable sales, the property’s condition and location, and current demand — not by what a seller hopes to get or what an owner originally paid.
Why it matters
Market value anchors realistic pricing and lending. A bank lends against it, a buyer should not overpay relative to it, and a seller who prices far above it may struggle to sell. Understanding it keeps expectations grounded in evidence.
What it is not
Market value is not the asking price, which is what a seller advertises, nor the transaction price actually agreed. It is an estimate of likely open-market worth, which may differ from both.
Example
A seller asks a high figure, but comparable recent sales place the property’s market value lower; the eventual transaction price settles closer to that evidenced market value.
Connected documents and parties
Valuation, comparable sales data; buyer, seller, valuer, bank.
Going deeper: related reading: valuation certificate and price per square foot.
Related Terms
How we define terms
Every definition on glossary.ae follows a controlled structure: what the term is, what it is not, when it is used, and where you will see it. Read our editorial methodology to understand how terms are selected, reviewed, and maintained.
Read editorial methodology →