What is Mark-to-Market?
Assets को historical cost के बजाय current market value पर value करना।
Description
Mark-to-market (MTM) is an accounting and valuation practice that adjusts the recorded value of an asset to its current market price. In real estate, this means periodically reappraising properties based on recent comparable sales, rental income, and market conditions rather than carrying them at historical cost. MTM provides a more accurate picture of an investor's true portfolio value.
DIFC and ADGM-regulated real estate funds are required to mark properties to market regularly, typically quarterly, using independent RICS-qualified valuers. If a property was acquired for AED 10M and the current valuation shows AED 12M, the fund's NAV increases by AED 2M. This unrealised gain is reflected in investor statements even though the property has not been sold.
How to interpret
Mark-to-market valuations reflect current market prices rather than historical cost. For investors, this means that portfolio values reported by funds or platforms reflect what the assets could achieve if sold today, not what was paid for them. Unrealised gains shown in mark-to-market reports are only realised when the asset is actually sold.
The timing of mark-to-market valuations affects the reported performance of funds and portfolios. Quarterly valuations by independent appraisers are the standard for regulated funds. Valuations conducted at market peaks capture unrealised gains that may not persist to the eventual sale date, potentially creating a gap between reported and realised performance.
दुबई मार्केट संदर्भ
Independent property valuers in Dubai must be registered with RERA to conduct valuations for regulated purposes including mortgages, insurance, and fund reporting. RICS-qualified valuers applying the RICS Red Book methodology are required for DIFC and ADGM-regulated fund valuations. The Red Book approach uses comparable sales, income capitalisation, and discounted cash flow methods depending on the property type.
Dubai's DLD transaction database provides one of the most transparent comparable sales datasets in the region, which supports accurate mark-to-market valuations. Valuers can access actual transaction prices for comparable units in the same building or community, reducing reliance on asking price data that can be aspirational rather than transactional.
Frequently asked questions
The practice of revaluing an asset or portfolio to reflect its current market price rather than its historical purchase price or book value.
Mark-to-market (MTM) is an accounting and valuation practice that adjusts the recorded value of an asset to its current market price. In real estate, this means periodically reappraising properties based on recent comparable sales, rental income, and market conditions rather than carrying them at historical cost.
Mark-to-market valuations reflect current market prices rather than historical cost. For investors, this means that portfolio values reported by funds or platforms reflect what the assets could achieve if sold today, not what was paid for them.
Independent property valuers in Dubai must be registered with RERA to conduct valuations for regulated purposes including mortgages, insurance, and fund reporting. RICS-qualified valuers applying the RICS Red Book methodology are required for DIFC and ADGM-regulated fund valuations.
Oliva feeds Mark-to-Market into a proprietary 6-dimension score that rates eparticularly Dubai project on Financial Value, Market Dynamics, Location, Developer Trust, Risk, Macro Context, and Liquidity. This keeps comparisons consistent across hundreds of listings.
If a property was acquired for AED 10M and the current valuation shows AED 12M, the fund's NAV increases by AED 2M. This unrealised gain is reflected in investor statements even though the property has not been sold.
Stop reading theory. See mark-to-market on real Dubai projects.
Oliva shows this metric live on 1,000+ Dubai projects, alongside 7 other data points that actually predict returns. DLD and RERA licensed, free to browse.
This content is for educational purposes only and does not constitute investment, financial, legal, or tax advice. Yields, returns, and market data referenced are historical or estimated and are not guaranteed. Capital is at risk. Seek independent professional advice before making investment decisions. Oliva is a licensed Dubai real estate advisor (DLD Broker Card: 92025, RERA BRN: 1573501). Read our Key Risks Disclosure and Disclaimer.