Category: Lexicon

Off-plan property

An off-plan property is a property that is still in the planning or construction phase and is offered for sale before completion. This form of investment is particularly popular in Dubai as it often offers attractive price advantages and flexible payment plans. The purchase is based on construction plans, visualisations and sample flats. The purchase of an off-plan property in [...]

Ready Property

A ready property is a fully completed property in Dubai that can be occupied or rented out immediately after purchase. These properties already have all the necessary connections, permits and fixtures and fittings and allow you to move in immediately without having to wait any longer. Ready properties occupy a special position in Dubai's dynamic property market. In contrast to off-plan projects, [...]

Mixed-Use Development

A mixed-use development is a property project that combines different types of use such as living, working, retail and leisure in an integrated concept. This modern form of urban development creates lively microcosms that are characterised by short distances and a wide range of possible uses. In Dubai, mixed-use developments represent a central component of the urban development vision of a networked, future-orientated metropolis. In Dubai, [...]

Rent Cap

The rent cap in Dubai is a legal regulation that limits the maximum annual rent increase. This rent cap was introduced to protect tenants from excessive rent increases and at the same time ensure a stable property market. The amount of the permitted rent increase is based on the deviation of the current rent from the average market price. The rent cap is an important [...]

Loan-to-value (LTV)

Loan-to-value (LTV) refers to the ratio between the amount of a property loan and the market value of the financed property. This important ratio is expressed as a percentage and is strictly regulated in Dubai. It largely determines how much equity you as a buyer need to raise to purchase a property. The loan-to-value (LTV) ratio plays a central role in the Dubai property market [...]

Mortgage Pre-Approval

The Mortgage Pre-Approval is a provisional commitment from a bank regarding the maximum amount of a possible mortgage loan. This pre-approval is based on a comprehensive review of your financial situation and gives you, as a potential property buyer in Dubai, planning security when looking for a property. It is usually valid for 60-90 days. The Mortgage Pre-Approval plays a central role in Dubai's property market, especially [...]

Security Deposit

The security deposit is a deposit that must be paid by the tenant to the landlord when renting a property in Dubai. It serves as financial security for possible damage to the property or outstanding payments. In Dubai, this security deposit usually amounts to 5% of the annual rent and is refunded if the tenancy is terminated in accordance with the contract. The security [...]

Renewal Clause

The renewal clause is a contractual provision in rental agreements that defines the conditions and modalities for a contract extension. It regulates important aspects such as the extension period, notice periods and possible rent adjustments in the event of a contract extension. In Dubai, this clause is particularly relevant as it offers both tenants and landlords legal certainty in the dynamic property market. In the context [...]

Tenancy Contract

The tenancy contract is the legally binding rental agreement between the landlord and tenant of a property in Dubai. This standardised contract must comply with the regulations of the Real Estate Regulatory Agency (RERA) and be registered in the Ejari system. It regulates all key aspects of the tenancy, such as the rental period, payment terms and obligations of both parties. In Dubai, the tenancy contract differs [...]

Gross Floor Area (GFA)

The Gross Floor Area (GFA) refers to the total gross floor area of a property, which is the sum of all covered and enclosed areas of all floors. In Dubai, the GFA is a decisive parameter for property valuation, construction planning and price calculation, which is calculated according to the guidelines of Dubai Municipality. The Gross Floor Area (GFA) plays an important role in the property market [...]

Rental Yield

The rental yield refers to the annual rental yield of a property in relation to its purchase price. It is an important indicator of the profitability of a property investment and is used as a key indicator for investment decisions, particularly in the Dubai property market. A distinction is made between the gross and net rental yield. The rental yield plays a particularly important role in the Dubai property market, [...]

Early Settlement Fee

The Early Settlement Fee is a fee charged by banks in Dubai for early repayment of a property loan. According to the UAE Central Bank's guidelines, this is limited to a maximum of 1% of the outstanding loan amount or AED 10,000, whichever is lower. This fee serves as compensation for the bank's loss of interest income. The Early Settlement [...]

Owners Association

The Owners Association (OA) is the legally prescribed owners' association in Dubai, which is made up of all the owners of a property complex. It is responsible for the management and maintenance of the communal areas and facilities. The OA is managed in accordance with the guidelines of the Dubai Real Estate Regulatory Authority (RERA) and represents the interests of all owners. The Owners [...]

Notice Period

The notice period is the legally or contractually stipulated period of notice that must be observed when terminating a tenancy in Dubai. This period gives both parties - tenant and landlord - the necessary time to adapt to the change and make appropriate preparations. In Dubai, the notice period is subject to clear legal regulations, which are [...]

Sub-Developer

A sub-developer is a property developer who develops a specific sub-area within a larger master project in Dubai. These developers acquire land or development rights from a master developer and are responsible for the planning, development and marketing of their assigned project areas. In Dubai's dynamic property market, sub-developers play a central role in the realisation of large-scale development projects. They act as an important [...]