27 Investment properties

	2022	2021
	AED’000	AED’000
At 1 January	3,500	7,925
Reclassified during the year	–	-4,425
Changes in fair value	600	–
	————————-	————————-
At 31 December	4,100	3,500
	=============	=============

 

Investment properties comprises a villa in Green Community, Dubai with a market value of AED 4,100 thousand (2021: 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 392 thousand (2021: AED 336 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.