Property talk comes with short words that people use loosely, and a loose word can hide a big difference in what a number means. This glossary covers nine terms you will meet when you read about buying in Dubai. Each has a one-sentence meaning and a note on how it works in practice.
Terms from A to D
Asking price. The price a seller lists before any buyer agrees to it. In practice, treat it as the start of a negotiation, and compare it with what similar flats in the same building actually sold for. The gap between the two shows how far talks moved the price.
Capital growth. The rise in a property’s value over time, apart from the rent it earns. In practice, you receive it only when you sell. It can also be a loss, so never count it as income.
DLD. The Dubai Land Department, the government body that registers property deals in Dubai. In practice, its register is the record of what sold and when, and the building prices on dataHabibi come from it.
Terms from G to O
Gross yield. Yearly rent divided by the purchase price, shown as a percentage, before any costs. In practice, use it for a quick comparison, then move on to net yield. For example, a flat bought at AED 800,000 earns AED 48,000 in rent a year, so its gross yield is 6 percent.
Net yield. Yearly rent minus the costs of owning the flat, divided by the purchase price. In practice, costs include the service charge, repairs and any months without a tenant. If the same flat carries AED 8,000 of yearly costs, its net yield falls to 5 percent.
Off-plan. A flat sold before the developer finishes the building, usually from drawings and a plan of staged payments. In practice, compare the launch price with what finished flats nearby sell for today, so you see how the launch price relates to current values.
Terms from P to S
Price per square foot. The sale price divided by the flat’s size in square feet. In practice, it lets you compare flats of different sizes, but compare like with like, because a small flat often shows a higher figure than a large one in the same tower.
ROI. Return on investment: the total gain from a property as a share of the money you put in. In practice, ask what the figure counts. Suppose you put in AED 500,000, collect AED 30,000 of net rent in a year, and the flat gains AED 20,000 in value. Counting rent alone gives 6 percent. Counting the rise in value too gives 10 percent. Two ROI figures only compare when they count the same things.
Service charge. The yearly amount an owner pays towards running the building, such as cleaning, security and the upkeep of shared areas. In practice, it comes out of your rental income, so include it in net yield, and ask for the current figure before you buy.
How data tools use these terms
A data tool turns each term into a number it can work out for every building. It reads registered sales to get real prices, divides by size to reach price per square foot, and divides rent by price to reach a yield. A careful tool also says which version of a figure it shows: gross or net, asking or sold. It states the period too, because a yield worked out on last year’s rents differs from one worked out on today’s rents. At area level the tool repeats the same sums across many buildings, so a clear definition matters even more. When you see a yield or an ROI on screen, check which of the terms above sits behind it, and you will know what the number does and does not tell you.
Keep this list close the next time a listing, a report or a broker quotes a figure. If a term is unclear, ask for its meaning before you ask for the number. Clear terms make clear comparisons, whether you work in a spreadsheet or on a platform. datahabibi.ae shows a building’s yield, ROI and price history in one place.
