This glossary covers essential real estate investment terms from F to L.
F
Fair Market Value
The price a property would sell for on the open market between willing buyer and seller.
Flip
Buying a property, improving it, and selling for profit in a short timeframe.
Freehold
Complete ownership of property and land in perpetuity. Common in Dubai designated areas.
Forced Appreciation
Increasing property value through improvements rather than market conditions.
G
Golden Visa
UAE long-term residence visa available to property investors meeting certain thresholds.
Gross Yield
Annual rental income divided by property price, before expenses.
H
Holding Costs
Ongoing expenses of owning a property: service charges, utilities, insurance, etc.
Holding Period
The length of time an investment is held before sale.
I
IRR (Internal Rate of Return)
Annualized return accounting for timing of cash flows. Professional investment metric.
Illiquid
Assets that cannot be quickly converted to cash without significant value loss.
J
Joint Venture
Partnership between two or more parties for a specific investment project.
K
KYC (Know Your Customer)
Verification process to confirm investor identity and suitability.
L
Leasehold
Ownership of property for a specified period, after which it reverts to the freeholder.
Leverage
Using borrowed money to increase investment potential. Amplifies both gains and losses.
Liquidity
The ease of converting an asset to cash without significant value loss.
Lock-Up Period
Time during which invested capital cannot be withdrawn from an investment.
LTV (Loan-to-Value)
Ratio of loan amount to property value. Higher LTV means more leverage.
Understanding these terms enables effective communication with professionals and informed decision-making.
