Essential Real Estate Terms: A Complete Dubai Property Glossary

Understanding the language of real estate is crucial when navigating Dubai's dynamic property market. Whether you’re an investor, buyer, or tenant, this comprehensive glossary covers all the essential terms you need to know—from visa options to legal processes and financial considerations. Equip yourself with the knowledge to make informed decisions in Dubai’s fast-paced real estate landscape.

Visa Options

Green Visa (5-Year Visa)

A renewable 5-year residency visa introduced in September 2022, the Green Visa allows skilled professionals, freelancers, and investors to reside in the UAE without sponsorship.

10-Year Golden Visa for Property Investors

Property investors in Dubai can obtain 10-year Golden Visa. The property must be fully owned and not mortgaged. Multiple properties can be combined to meet the AED 2,000,000 threshold. This visa is renewable and can also be extended to the investor's spouse and children. It offers long-term residency security and is part of the UAE's Golden Visa initiative.

2-Year Visa for Property Owners (“Taskeen”)

The "Taskeen" program allows property investors to obtain a renewable 2-year residency visa. The property must have a minimum value of AED 750,000. If financed, at least AED 750,000 must be paid as equity.

Retirement Visa

Available since September 2020, the Retirement Visa allows retirees worldwide to settle in Dubai. Applicants must meet specific financial requirements, such as owning a property worth over AED 2,000,000 or having liquid assets of AED 1,000,000.

Legal Procedures

Unified Sales Contract (Form F)

Also known as "Form F," this standardized contract is used for property sales in Dubai. It details the terms of the property transaction and is required by the Dubai Land Department.

Transfer Fee

A 4% fee levied by the Dubai Land Department (DLD) for transferring property ownership. This fee is usually paid by the buyer, although in some cases, the buyer and seller may agree to split the cost. The fee is calculated based on the purchase price of the property and is a standard part of the property transaction process in Dubai.

Transfer

The process where the involved parties (seller, buyer, lender, and their legal representatives) visit the Dubai Land Department or a registered trustee office to complete the transfer of ownership. Payment of relevant amounts to the respective parties is also finalized during this procedure.

Title Deed

Issued by the Dubai Land Department, the Title Deed is a legal document proving property ownership, including any restrictions or obligations (e.g., mortgages). Title Deeds are issued for completed properties, while Off-Plan properties are documented with an Oqood Certificate (see "Oqood").

Power of Attorney (PoA)

A legal document authorizing a third party to act on behalf of the property owner in legal matters, including property transactions. In the UAE, PoAs must be notarized and are valid for up to two years.

Non-Objection Certificate (NOC)

A document issued by the developer that grants permission to transfer property ownership in Dubai. The seller must obtain this before the transfer, and a fee of up to AED 5,000 may apply.

Memorandum of Understanding (MoU)

In Dubai, the MoU outlines the terms of a property transaction, including the purchase price and payment terms. It’s often used in addition to the mandatory "Form F."

Registration Trustee

An escrow office accredited by the Dubai Land Department that offers registration of property transactions outside the DLD's official premises and business hours.

Financial Terms

Yield

Yield is the percentage return on your investment property, calculated by dividing the annual rental income by the total investment cost. This figure is crucial for assessing the profitability of real estate investments in Dubai.

Return on Investment (ROI)

ROI measures the profitability of an investment, calculated by comparing the profit generated to the total investment. It’s essential for evaluating the success of your real estate investments.

CAP Rate (Capitalization Rate)

The CAP Rate indicates the relationship between a property's net income and its purchase price, considering operating expenses. A higher CAP Rate suggests a better return on investment.

Gross Rent Multiplier (GRM)

The GRM is a metric that compares a property's price to its potential gross rental income, excluding ongoing costs. A lower multiplier suggests a higher gross rental yield.

Collateral

In Dubai, collateral is typically provided to the lender to secure a property loan. When using a bank loan to purchase a property (mortgage), the property itself is used as collateral. This security is recorded in the property register at the Dubai Land Department and noted on the Title Deed.

Final Offer Letter

A document issued by the lender to the borrower, offering financing for a property purchase in Dubai with specified terms (loan amount, collateral, interest rate, duration). Before receiving the Final Offer Letter, the borrower must obtain pre-approval from the bank.

Escrow Account – Off-Plan Property

For Off-Plan property purchases, payments must be made into escrow accounts held by developers at authorized banks. This ensures funds are used according to RERA regulations.

Mortgage

A legal instrument used to secure a loan for property purchase in Dubai. The mortgage is registered in the Dubai Land Department's property register and noted on the Title Deed.

Mortgagor

The borrower who uses a loan to purchase a property in Dubai and agrees to have a mortgage (lien) placed on the property as collateral.

Mortgagee

The financial institution or bank that provides a loan for property purchase and secures the loan with a mortgage registered in the Dubai Land Department's property register.

Property Types

Freehold Title

Freehold ownership allows you to own both the land and the buildings indefinitely in designated areas of Dubai. Non-GCC citizens can acquire full property ownership in areas like Dubai Marina, Palm Jumeirah, and Downtown Dubai.

Leasehold

Leasehold ownership means you own the building but not the land, typically for 10 to 99 years. Leaseholds can usually be transferred for the remaining term and are registered with the Dubai Land Department.

Off-Plan Property Purchase

Purchasing a property under construction, known as Off-Plan, is common in Dubai. Buyers receive an Oqood Certificate as proof of ownership and are listed in the Interim Real Estate Register.

Oqood

A registration system maintained by the Dubai Land Department for Off-Plan property purchases. Upon registration, the buyer receives an Oqood Certificate, which outlines the buyer's legal rights to the property.

Interim Real Estate Register

A property register maintained by the Dubai Land Department for Off-Plan properties still under construction (see also "Oqood").

Mixed-use Development

A development designed for multiple uses, such as residential, office, and commercial spaces. Popular mixed-use developments in Dubai include Downtown Dubai and Dubai Creek Harbour.

Designated Area (Freehold Property in Dubai)

Designated Areas, also known as Freehold Areas, are locations in Dubai where non-GCC nationals can acquire full property ownership. Ownership in these areas is documented by a Title Deed and recorded in the Dubai Land Department's property register.

Common Areas

Areas within a multi-unit property that are jointly used by the residents and owners, such as entrances, fitness areas, pools, stairwells, and corridors. Common areas are managed by the property’s Owners Association.

Property Management

Property Management

A service provided to property owners that includes managing tenancies, technical maintenance, and repairs. Effective property management ensures your investment is well-maintained and profitable.

Owners Association

An organization responsible for maintaining common areas within a multi-unit property, such as apartment buildings. The Dubai Land Department regulates Owners Associations.

Rental Dispute Settlement Centre (RDSC)

Operated by the Dubai Land Department, the RDSC offers arbitration services for resolving rental disputes between tenants and landlords.

Wear and Tear

Refers to the normal depreciation of a rental property due to regular use by tenants. Under Dubai rental law, tenants are not required to compensate the landlord for normal wear and tear.

Brokerage and Sales

Broker

A real estate agent in Dubai who acts as an intermediary between buyers and sellers. All brokers must hold a RERA card and a business license from the Department of Economic Development (DED).

Broker Registration Number

Each licensed real estate broker in Dubai is assigned a Broker Registration Number by the Dubai Land Department. This must be included in all marketing materials.

Commission

A fee charged by real estate brokers for facilitating a property transaction in Dubai. It is typically a percentage of the transaction value and subject to a 5% VAT since January 2018.

Form A

A broker agreement in Dubai where the seller and real estate agent agree to list and sell a property.

Form B

A broker agreement in Dubai in which the buyer and real estate agent agree to purchase or facilitate the purchase of a property.

Sale and Purchase Agreement (SPA)

A contract detailing all relevant terms for the purchase of Off-Plan properties in Dubai, including the purchase price, additional conditions, and payment terms. An SPA is typically used between buyers and developers for Off-Plan transactions.

Letter of Intent (LoI)

A preliminary written agreement between two parties (e.g., buyer and seller) outlining the terms under which the buyer is willing to purchase the property. While an LoI has the form of a contract, it is usually not fully binding on the parties.

Letter of Expression (LoE)

A Letter of Expression (LoE), sometimes referred to as a Letter of Expression of Interest (LoEI), is a document used by a potential buyer or investor to formally express their interest in a property or business opportunity. The LoE is typically less formal than a Letter of Intent and is used earlier in the negotiation process. It serves to communicate serious interest but does not usually outline specific terms or conditions

Property Transactions

Site Plan

A plan recorded in the land registry at the Dubai Land Department, detailing the layout of individual units and common areas of a property.

Valuation

The process of estimating a property's value, typically conducted by a professional appraiser using various methods depending on the property type. Valuations are often commissioned by lenders or other parties involved in a real estate transaction.

Tenant

An individual or company that occupies or uses a rented property.

Lessor

Another term for "landlord," referring to the property owner who rents out a property.

Lessee

Another term for "tenant," referring to the individual or company renting a property.

Lease

A rental agreement between a property owner and a tenant, specifying the property's use, duration, and rent. In Dubai, a standardized document from the Dubai Land Department must be used as the base contract. Additional terms or clarifications are typically recorded in an addendum. The signed contract must be registered in the Ejari system.

Subdeveloper

A developer responsible for constructing individual buildings or complexes within a Master Community. The subdeveloper must adhere to the guidelines set by the Master Developer regarding planning and construction.

Master Developer

The main developer responsible for the planning and development of a Master Community, including infrastructure and utility connections.

Escrow Agent

A bank or financial institution registered and authorized by the Dubai Land Department to maintain escrow accounts for property transactions.

Ijara – Lease-to-Own Property Financing in Dubai

Since 2019, lease-to-own financing has been available for property purchases in Dubai. This Sharia-compliant financing model involves the lender (landlord/seller) leasing the property to the borrower (tenant/buyer) until the loan is fully paid off. The Dubai Land Department issues a special "Ijara" Title Deed for such lease-to-own arrangements.

Lien

A legal claim (mortgage) registered in the Dubai Land Department's property register that must be settled before a property can be sold.

Foreclosure

A legal process through which a lender repossesses a property in Dubai due to the borrower's failure to make mortgage payments.

Non-Disclosure Agreement (NDA)

A legal agreement that outlines the confidentiality obligations of the parties involved in a business transaction, such as a property purchase. The NDA details the rights and responsibilities of each party concerning the disclosure of confidential information.

EJARI – Registration of Rental Contracts in Dubai

EJARI is a system implemented and maintained by the Dubai Land Department for registering rental contracts. Registration is mandatory to activate utilities (electricity and water) and is required for filing cases with the Rental Dispute Resolution Center.

Rental Index

The RERA Rental Index is regularly published by Dubai's Real Estate Regulatory Agency (RERA) and provides market rent data based on a property's location and size. The legal rent cap in Dubai uses the RERA Rental Index as a reference.

Dubai Land Department (DLD)

The Dubai Land Department is responsible for registering property transactions, recording them in the property register, and issuing Title Deeds. The DLD also issues regulations related to property laws and offers a range of services to Dubai's real estate industry.

Real Estate Regulatory Agency (RERA)

RERA is the regulatory arm of the Dubai Land Department. It oversees and registers developers, Off-Plan projects, owners' associations, trustees, and tenancies. RERA also supervises other activities within Dubai's real estate sector.

Property Register

A registry maintained by the Dubai Land Department that records a property's description, location, and associated rights.

Conclusion

Navigating the Dubai real estate market requires a solid understanding of the key terms and procedures that govern property transactions in the emirate. This glossary is designed to serve as a valuable resource, helping you make informed decisions whether you are buying, selling, or renting property in Dubai. Bookmark this guide as you explore the exciting opportunities that Dubai’s real estate market has to offer.

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