Dubai Property Glossary
Every Dubai real estate term explained simply — from DLD and RERA to Oqood, Ejari, and freehold ownership.
DLD — Dubai Land Department
The government authority responsible for all property registrations, transfers, and regulations in Dubai. Every property transaction in Dubai must be registered with the DLD. The DLD charges a 4% transfer fee on all secondary market property purchases and maintains the official property ownership records.
RERA — Real Estate Regulatory Agency
The regulatory arm of the DLD that oversees Dubai's property market. RERA licenses real estate brokers, regulates developer escrow accounts, manages rental disputes, and publishes the rental index used to determine legal rent increases. All brokers and developers must be RERA-registered.
Freehold
Full ownership of a property and the land it stands on, with no time limit. Foreign nationals can buy freehold property in designated freehold zones in Dubai. There are over 60 freehold areas including Dubai Marina, Downtown Dubai, Palm Jumeirah, JVC, Business Bay, and Dubai Hills Estate.
Leasehold
The right to use a property for a fixed term, typically 10-99 years, without owning the land. At the end of the lease, ownership reverts to the freeholder. Leasehold properties are less common in Dubai than freehold but do exist in some older developments.
Title Deed
The official legal document issued by the DLD that proves ownership of a property. The title deed contains the owner's name, property details, size, and location. It is issued on the day of transfer at a DLD trustee office. For off-plan properties, the title deed is issued at handover.
SPA — Sales and Purchase Agreement
The legally binding contract signed between a buyer and developer (for off-plan) or buyer and seller (for secondary market) that outlines the terms of the property purchase, including price, payment schedule, and handover date. Always read the SPA carefully before signing.
MOU — Memorandum of Understanding
Also called Form F, the MOU is a preliminary agreement signed between buyer and seller of a secondary market property once a price is agreed. It includes the agreed price, 10% deposit details, and completion date. The MOU is typically prepared by the real estate agent.
NOC — No Objection Certificate
A certificate issued by the developer confirming that the seller has no outstanding payments (service charges, mortgage, etc.) and the developer has no objection to the property being transferred to a new buyer. Required for all secondary market transfers in Dubai.
Oqood
The DLD's online registration system for off-plan property contracts. When you buy off-plan, your Sales and Purchase Agreement is registered with Oqood and you receive an Oqood certificate as proof of ownership during the construction period. The Oqood registration fee is 4% of the property price.
Ejari
The mandatory tenancy registration system in Dubai managed by RERA. All rental contracts must be registered through Ejari. Registration costs AED 220 and is typically done by the landlord or property manager. Ejari registration is required to connect DEWA utilities and for visa renewals.
DEWA
Dubai Electricity and Water Authority — the government utility provider for electricity and water in Dubai. Property owners must register with DEWA when taking possession of a property. The DEWA security deposit is AED 2,000 for apartments and AED 4,000 for villas, refundable when you disconnect.
Service Charge
An annual fee paid by property owners to cover the maintenance of common areas, building facilities, security, and community management. Service charges in Dubai range from AED 3 to AED 35 per square foot annually depending on the building. Always check service charges before buying — they significantly impact net yield.
Off-Plan Property
A property purchased from a developer before or during construction. You pay in stages according to a payment plan linked to construction milestones. Handover is typically 2-4 years from purchase. Off-plan offers lower entry prices and flexible payment plans but no rental income until handover.
Ready Property
An existing completed property bought from the current owner on the secondary market. The transfer happens within 30-60 days of agreeing a price. Ready property gives immediate rental income and mortgage access but requires full payment upfront and costs 6-7% in transaction fees.
Gross Rental Yield
Annual rental income divided by property purchase price, expressed as a percentage. Gross yield does not account for any costs. Dubai apartments average 6-7% gross yield citywide, with high-yield areas like JVC and Dubai South delivering 7-9%.
Net Rental Yield
Annual rental income minus all costs (service charges, vacancy, management fees, maintenance) divided by purchase price. Net yield in Dubai is typically 2-3 percentage points below gross yield. Net yield is the more accurate measure of actual investment returns.
LTV — Loan to Value
The ratio of mortgage loan to property value. In Dubai, UAE residents can borrow up to 80% LTV (20% down payment) on their first property under AED 5 million. Non-residents are limited to 60-70% LTV. Higher LTV means lower down payment but higher monthly payments.
DBR — Debt Burden Ratio
The UAE Central Bank's rule that caps total monthly debt payments at 50% of gross monthly income. All existing loans, credit cards, and the new mortgage payment are included in this calculation. If your DBR exceeds 50%, banks will not approve your mortgage.
Trustee Office
A DLD-approved private company that processes property transfers in Dubai. Both buyer and seller (or their POA holders) must attend the trustee office in person to complete a transfer. The trustee fee is AED 2,000 for properties under AED 500,000 and AED 4,000 for properties above.
Golden Visa
A UAE long-term residency visa valid for 10 years, renewable, and self-sponsored. Property investors can qualify for the Golden Visa by owning property worth AED 2,000,000 or more. The Golden Visa covers spouse, children, and domestic workers, and has no restriction on time spent outside the UAE.
Escrow Account
A DLD-supervised bank account that holds off-plan buyer payments until construction milestones are verified. UAE law requires all off-plan developers to collect payments into a registered escrow account. This protects buyers — if a project is cancelled, funds are returned from escrow.
Snagging
The process of inspecting a newly completed off-plan property before handover to identify defects, unfinished work, or items that do not match the agreed specifications. Buyers have the right to a snagging inspection before accepting handover. Developers must fix snags within a specified period.
POA — Power of Attorney
A legal document authorising one person to act on behalf of another in property transactions. Useful for overseas buyers who cannot attend the transfer in person. A UAE POA must be notarised and attested. The POA holder can sign documents and attend the DLD transfer on the owner's behalf.
Strata Law
UAE law governing the ownership and management of jointly owned properties such as apartment buildings. Under strata law, each unit owner owns their unit plus a share of common areas. The Owners Association manages common areas and collects service charges from all owners.
Owners Association (OA)
The body responsible for managing common areas, facilities, and services in a jointly owned property (apartment building or villa community). All property owners are members of the OA and pay annual service charges. The OA is registered with RERA and must follow RERA guidelines.
Handover
The moment when an off-plan developer officially transfers a completed property to the buyer. At handover, the buyer pays the final instalment, receives the keys, and is issued a title deed. Buyers should conduct a snagging inspection before accepting handover.
Post-Handover Payment Plan
An off-plan payment plan where a portion of the purchase price (typically 30-50%) is paid over 2-5 years after the property is handed over. This allows investors to use rental income to fund remaining payments. Popular with investors who want to limit upfront cash outlay.
DTCM Permit
A permit issued by the Department of Tourism and Commerce Marketing required to operate a short-term holiday home rental in Dubai. Annual cost is AED 1,520 for studios and 1-bedroom units, AED 2,320 for larger units. Not all buildings allow short-term letting — check with building management before buying.
Capital Gains
The profit made when selling a property for more than the purchase price. Dubai has zero capital gains tax — all profit from property sales is kept by the seller with no government deduction. This is one of the key advantages of Dubai property investment versus markets like the UK or India.
Rental Index
A database published by RERA showing average market rents across Dubai by area, property type, and size. Landlords must consult the rental index before increasing rent to determine whether an increase is legally permissible under Decree 43 of 2013. Available at the DLD website and Dubai REST app.
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