This glossary covers essential real estate investment terms from M to R.
M
Market Value
The most probable price a property would bring in a competitive market.
Mortgage
A loan secured by real property, with the property as collateral.
MOU (Memorandum of Understanding)
Preliminary agreement outlining terms before formal contract.
N
Net Operating Income (NOI)
Gross income minus operating expenses, before debt service.
Net Worth
Total assets minus total liabilities. Often used for investor accreditation.
NOC (No Objection Certificate)
Document from developer confirming no objection to property transfer.
O
Off-Plan
Property purchased before or during construction, based on plans.
Operator
The company managing a real estate investment on behalf of investors.
P
Passive Income
Earnings from investments requiring minimal active involvement.
Portfolio
Collection of investments held by an individual or entity.
Preferred Return
Minimum return investors receive before profit sharing with operator.
Principal
The original amount invested, excluding returns or interest.
R
Ready Property
Completed property available for immediate occupancy, as opposed to off-plan.
RERA
Real Estate Regulatory Agency. Dubai's real estate regulator.
Return on Investment (ROI)
Profit divided by investment amount, expressed as percentage.
Risk-Adjusted Return
Return evaluated relative to the risk taken to achieve it.
Mastering this vocabulary helps investors navigate real estate discussions confidently.
