25 Investment properties
Investment properties
| 2023 | 2022 | |||
| AED’000 | AED’000 | |||
| At 1 January | 4,100 | 3,500 | ||
| Acquisition | 29,525 | – | ||
| Disposed | (4,100) | – | – | |
| Changes in fair value | 1,417 | 600 | ||
| At 31 December | 30,942 | 4,100 |
Investment properties comprise a commercial property located in Ajman Industrial 2, a flat in Al Raha, Abu Dhabi and three flats in Business Bay, Dubai with a fair market value of AED 30,942 thousand (2022: a villa in Green Community, Dubai with fair market value of AED 4,100 thousand).
The independent valuers adopt 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 during the year is AED 423 thousand (2022: AED 336 thousand) and is recognised in the consolidated statement of profit or loss 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.
