Annual Appreciation

Projected growth in the market value of the asset over one year.

For example, if you purchase a property for AED 1,100,000 (including buying costs) and later sell it for AED 1,500,000 (net of selling costs), your capital appreciation is AED 400,000 or 36.4%.

Yearly Investment Return

Total ROI over a holding period (e.g., 5 years) averaged on an annual basis, including net yield and annual appreciation.

For example, if a property provides a 50% ROI over 5 years, the yearly investment return averages to 10% per year.

Gross Yield

Projected annual percentage return generated by a property before deducting expenses.

For example, a property bought for AED 1,000,000 and rented for AED 100,000 per year yields a gross return of 10%.  

Net Yield

Projected annual percentage return after deducting all expenses like service charges, management fees, and maintenance.

For example, if a property rents for AED 100,000 yearly with AED 25,000 in expenses, the net yield is 7.5% (AED 75,000/AED 1,000,000).

ROI (Return on Investment)

The ratio of profit from an investment (rental income plus appreciation) relative to the original purchase price.

For example, a property purchased for AED 1,000,000 and sold for AED 1,300,000 after 5 years, while generating AED 250,000 in rent, would have an ROI of 55% [(1,300,000 - 1,000,000 + 250,000) / 1,000,000].

Title Deed

An official document from the Dubai Land Department confirming ownership of a property.

For example, once a property transaction is complete, the buyer receives a Title Deed confirming legal ownership.

Transaction Costs

Additional costs incurred beyond the property’s purchase price during a transaction.

For example, in Dubai, transaction costs include transfer fees, trustee fees, and registration charges payable to the Dubai Land Department.

DLD (Dubai Land Department)

The government authority overseeing property registration and transactions in Dubai.

For example, all property purchases and title deed issuances in Dubai are processed through the DLD.

Oqood

A pre-registration document for off-plan properties issued by the DLD, confirming your ownership during the construction phase.

For example, if you buy an off-plan property, you will receive an Oqood until the project is completed and the Title Deed is issued.

Service Charges

Recurring fees paid by property owners for the maintenance of common areas and building facilities.

For example, owners in a Dubai apartment building pay annual service charges for amenities like pools, gyms, and security.

Ejari

An online system for registering tenancy contracts with the Dubai Land Department to legalise rental agreements.

For example, when you rent out your property, you must register the tenancy contract through Ejari to comply with Dubai law.

Off-Plan Property

A property purchased from a developer before construction is complete, usually at a lower price with staged payments.

For example, buying an apartment in Business Bay during the construction phase is considered an off-plan purchase.

Ready Property

A completed property ready for immediate handover, occupancy, or rental.

For example, a villa with a Title Deed and utility connections is considered a ready property.

Mortgage Pre-Approval

A bank’s confirmation of the loan amount you qualify for, helping you understand your purchasing power.

For example, getting pre-approved for AED 1,000,000 allows you to confidently make offers on properties within that budget.

Rental Yield

Annual rental income expressed as a percentage of the property’s purchase price.

For example, AED 80,000 in annual rent on a AED 1,000,000 property equals an 8% rental yield.

Capital Gains Tax

A tax on profits earned from selling an investment property.

For example, Dubai currently does not impose capital gains tax, allowing you to retain 100% of your profit on property sales.

Freehold Ownership

Allows full ownership of a property and the land it stands on, available in designated areas in Dubai.

For example, foreign investors can purchase apartments in Downtown Dubai under freehold ownership.

No Objection Certificate (NOC)

A document from the developer confirming no outstanding payments or issues, allowing property transfer.

For example, before selling your Dubai property, you need to obtain an NOC from the developer to proceed with the transfer.

Tenancy Contract

A legally binding agreement outlining the terms and conditions of renting a property.

For example, when leasing your apartment, you and the tenant sign a tenancy contract detailing rent, duration, and obligations.

Down Payment

The upfront payment made towards purchasing a property, with the balance paid later or via mortgage.

For example, a 20% down payment on a AED 1,000,000 property would require an upfront payment of AED 200,000.

Developer Escrow Account

A secure, regulated account where buyer payments for off-plan properties are held until construction milestones are met.

For example, your payments for an off-plan purchase in Dubai are deposited into a DLD-regulated escrow account to protect your funds.

Handover Date

The date on which the property is completed and officially transferred to the buyer for occupancy.

For example, the handover date for your off-plan apartment will be when construction is complete and keys are handed over.