The top real estate terms a broker needs to know to work in Dubai (Part 2)

We continue to get acquainted with the main terms in the Dubai real estate market

To avoid getting into an awkward situation, read what is behind the seemingly complex acronyms. Spoiler: it's much simpler than you think. 

P.S. You can find the first part of the terms a broker needs here.

ROI

ROI is the main indicator for an investor in Dubai. From English, Return of Investment translates to "return on investment". ROI gives an idea of the return on investment and measures the net profit. 

Many buyers seek to purchase off-plan real estate and then resell it for a higher price. The estimated average ROI in such cases ranges from 10 to 12%. The profitability of real estate is also affected by the reputation of the developer, the location of the complex, the infrastructure of the area, the area. As practice shows, better rented one-room apartments, so ROI from them will be higher than from villas or multi-room apartments. 

SPA

SPA (Selling Purchase Agreement) is a contract of sale, in simple words, a kind of agreement between the developer and the buyer. When buying an apartment in a new building, when signing a contract with the developer, the client must necessarily sign an SPA.

Each developer has its own version of the agreement. Usually it spells out the following points:

- the cost of the property and the payment schedule;

- the layout of the apartment;

- the date on which the developer plans to complete the construction of the property;

- a clause on the terms of resale. 

In addition to the basic information, the SPA may also include other arrangements agreed upon by both parties.

The SPA is usually prepared within 1-4 weeks after the property is booked. If your client wants to purchase the apartment remotely, the SPA can also be concluded remotely. And the original documents will arrive via a delivery service anywhere in the world. 

Usufruct

This term is also a must know for the aspiring real estate broker in Dubai. "Usufruct" gives a title of ownership that is time-limited for ninety-nine years. Those realtors who have experienced buying or selling real estate in the UAE know that, in essence, the term Usufruct is similar to the term "lishold". The only big difference: ownership of housing on "usufruct" does not give the right to change the external (and partially internal) appearance of the property. That is, you can forget about remodeling, reconstruction or major repairs. 

Ejari

If your client is planning to rent out the property, you should familiarize yourself with the term "Ejari". It is an entire online system aimed at regulating the relationship between landlord and tenant in Dubai. 

Important information: if for some reason when renting out an apartment, the contract is not entered into the Ejari system, it will be considered invalid. Therefore, in case of difficult situations, none of the parties will be able to ask for support. First of all, the person who owns the apartment is responsible for its registration in the system. For the convenience of residents of Dubai, there is a special mobile application. 

What you need to pay attention to: the Ejari certificate is not automatically canceled. Therefore, when the lease expires, the contract will have to be canceled independently. 

Makani

From Arabic, this term translates to "my location". A real estate broker in Dubai needs to know that Makani is a kind of cipher that is located on every house. Shopping centers, residential buildings and landmarks have their own unique code consisting of ten characters.

And now let's get to the most interesting part: what is it for? The thing is that Dubai has developed an official Makani address system, which allows you to quickly determine where you are during an emergency. And in everyday life, the system will tell you how to quickly create a route to this or that object and will help you better navigate in the city. 

DEWA

This is the term your client will need when they move into their apartment. DEWA, or Dubai Electricity and Water Authority, is Dubai's sole utility operator. The company keeps up with the times: it cares about the environment and uses artificial intelligence. 

A brief guide to terms instead of the bottom line 

ROI - return on investment;

SPA - sale and purchase agreement;

Usufruct - the right to own real estate for a limited period of time without the possibility of renovation;

Ejari - an online system for landlord and tenant;

Makani - official address system;

DEWA - utility operator.