27 Investment properties

 

 

		2021		2020
		AED’000		AED’000
At 1 January		7,925		7,925
Reclassified during the year		(4,425)		–
		————————-		————————-
At 31 December		3,500		7,925
		=============		=============

Investment properties comprises a villa in Green Community, Dubai with a market value of AED 3,500 thousand (2020: AED 3,500 thousand)

An independent valuer for the valuation of this investment property adopts the comparable market value method in valuing the investment properties. This method calculates the value of the property by taking the market valuation of comparable properties, which reflects market sentiment and situation. The prime location, maintenance and occupancy levels are also considered.

The net rental income recognised is AED 336 thousand (2020: AED 403 thousand) and is recognised in the consolidated income statement under ‘other operating income’.

The fair value measurement for all the investment properties has been categorized as a level 3 fair value based on the inputs to the valuation technique used.