Property Glossary

The resale of an off-plan unit by the original buyer to a new buyer before the property completes. It is usually permitted once a developer-defined percentage of the price has been paid, and requires a developer No Objection Certificate (NOC) and transfer fees.

A yearly fee paid by owners for the upkeep of shared areas, security and building amenities, quoted per square foot and set annually by the Owners Association and approved by RERA. It typically ranges from around AED 3 to AED 30 per sq ft depending on the community and facilities.

The total internal floor area of a property measured to the outer face of its walls, including the usable suite plus a share of common walls and, for villas, features like balconies and covered parking. It is usually larger than the net internal 'suite area'.

A broker who represents the buyer’s interests in a transaction — sourcing suitable properties, arranging viewings, carrying out due diligence and negotiating price and terms on the buyer’s behalf.

The increase in a property’s market value over time, realised as profit when you sell. In Dubai it is a key driver of off-plan and prime-area investment returns, and — unlike many countries — is not subject to capital gains tax.

A property where the cost of air-conditioning (cooling) is included in the rent or service charge rather than billed separately to the occupier. It makes budgeting simpler, as cooling can otherwise be a significant monthly cost in Dubai.

The final stage of a purchase when ownership officially transfers from seller to buyer at the Dubai Land Department, the balance is paid and the new title deed is issued.

The cost of air-conditioning a property, often supplied by a district cooling provider such as Empower and billed on consumption plus a fixed capacity charge. In 'chiller-free' properties this cost is absorbed by the landlord.

Dubai Electricity and Water Authority — the utility provider you connect to when moving into a property. A refundable security deposit is required to activate an account (higher for villas than apartments).

A centralised system that produces chilled water at a plant and pipes it to multiple buildings for air-conditioning, common in Dubai communities. Providers such as Empower and Emicool bill a consumption charge plus a fixed capacity fee.

The Dubai Land Department — the government authority that regulates, registers and records all real-estate transactions in Dubai, issues title deeds and levies the 4% property transfer fee.

The government fee charged by the Dubai Land Department to register a change of ownership, set at 4% of the purchase price (plus a small admin fee). It is commonly paid by the buyer at the transfer appointment.

The Emirates Interbank Offered Rate — the benchmark interest rate at which UAE banks lend to one another. Most variable-rate mortgages are priced as EIBOR plus a fixed margin, so your repayments move with EIBOR after any fixed period ends.

The official RERA system for registering tenancy contracts in Dubai (the word means 'my rent' in Arabic). Registration is mandatory and makes a lease legally recognised — it is required to connect DEWA, sponsor family visas, enrol children in school and file any rental dispute.

A regulated bank account, supervised by the DLD/RERA, into which off-plan buyer payments are deposited. Funds are released to the developer only against certified construction milestones, protecting buyers if a project is delayed or cancelled.

The RERA listing agreement signed between a property seller and their broker, authorising the agent to market the property and generating the Trakheesi permit number used to advertise it legally.

The RERA agreement between a buyer and their broker, setting out the terms under which the agent represents the buyer in a purchase.

The Memorandum of Understanding — the RERA sales contract between buyer and seller that sets out the agreed price, deposit and terms. Signing Form F and paying the deposit (typically 10%) commits both parties to the transaction ahead of transfer.

Outright ownership of both the property and the land it sits on, in perpetuity, with the right to sell, lease or bequeath it. Freehold ownership is available to all nationalities within designated freehold areas of Dubai.

The transfer of property between first-degree relatives (such as parent to child or between spouses) at a reduced DLD fee, supported by documentation proving the relationship. It is a common tool for family and estate planning.

A long-term, renewable UAE residency visa (typically 10 years) available to property investors who own real estate worth AED 2 million or more, among other categories. It offers greater stability than a standard investor visa and can include family members.

A contractually agreed window — often up to 12 months beyond the anticipated completion date — during which an off-plan developer may hand over without being in breach. Delays within this period are generally not grounds for penalty.

Annual rental income expressed as a percentage of the property’s purchase price, before deducting expenses. For example, AED 100,000 rent on a AED 1.5 million property is a 6.7% gross yield.

The point at which a completed property is delivered to the buyer with keys and access, ready to occupy or lease. For off-plan purchases it follows final payment, snagging and DLD registration.

A renewable UAE residency visa granted to property owners, generally available for real estate worth AED 750,000 or more. It allows the owner to reside in the UAE and, subject to income thresholds, sponsor family members.

A building or community where individual units are privately owned but common areas are shared, governed by the Jointly Owned Property Law. Owners collectively fund and manage the shared areas through service charges and an Owners Association.

The right to use and occupy a property for a fixed term (commonly up to 99 years) without owning the underlying land. At the end of the term, rights revert to the freeholder unless renewed.

The ratio of a mortgage loan to the property’s value, expressed as a percentage. A higher LTV means a smaller deposit; UAE regulations cap LTV at up to 80% for resident expat first-time buyers on properties under AED 5 million.

A guaranteed cheque drawn on and certified by a bank, commonly required to pay the balance at a property transfer because the funds are secured. It gives the seller certainty that the payment will clear.

The DLD-regulated system that governs and collects service charges for jointly owned properties in Dubai. It brings transparency to how community fees are calculated, invoiced and spent by management companies.

The maximum loan-to-value a bank will lend against a property — typically up to 80% for resident first-time buyers on homes under AED 5 million, lower for higher values, off-plan and non-residents.

A DLD fee to register a mortgage against a property, charged at 0.25% of the loan amount plus a small admin fee. It is paid in addition to the standard 4% transfer fee on a financed purchase.

A long-term right (up to 50 years, renewable) to develop, use and dispose of buildings on land owned by another party. It is used mainly for development and commercial arrangements rather than residential ownership.

Annual rental income as a percentage of the purchase price after deducting operating costs such as service charges, management fees, maintenance and void periods. It gives a more realistic picture of returns than gross yield.

No Objection Certificate — a document issued by the developer confirming there are no outstanding service charges or dues on a property. It is required before ownership can be transferred at the DLD.

A property purchased before or during construction, directly from the developer, usually at a lower launch price with a staged payment plan tied to build milestones. Buyer funds are protected in a regulated escrow account.

The initial registration of an off-plan unit with the DLD (the word means 'contracts' in Arabic), securing the buyer’s interest before the project completes and the final title deed is issued.

The body representing all owners in a jointly owned property, responsible for managing and maintaining common areas, setting the annual service charge budget and appointing a management company.

The schedule of instalments for an off-plan purchase, expressed as a split such as 70/30 (70% during construction, 30% on handover) or a post-handover plan where part of the price is paid after you receive the keys.

An off-plan payment structure where a portion of the price is paid in instalments after handover — for example 60% during construction and 40% over two to three years afterwards — easing cash flow and letting rental income help fund payments.

A notarised legal document authorising another person to act on your behalf — for example to sign contracts, register Ejari or complete a property transfer — useful for overseas owners who cannot attend in person.

The sale of new property directly from developers, including off-plan launches and newly completed units. It contrasts with the secondary (resale) market of properties sold by existing owners.

A completed property available to occupy or lease immediately, sold either by a developer or on the secondary market. It lets buyers see the exact unit and start earning rental income straight away.

The Real Estate Regulatory Agency — the regulatory arm of the Dubai Land Department that licenses brokers and developers, oversees escrow accounts, maintains the rental index and sets the rules that govern the market.

The official tool that determines the maximum permitted rent increase at renewal, based on how far the current rent sits below the average market rate for similar units. If the rent is close to market, no increase is allowed.

A measure of an investment’s profitability, combining rental income (yield) and capital appreciation relative to the total cost. In Dubai, ROI is often quoted as the rental yield but a full view also accounts for value growth and costs.

The binding contract between a buyer and a developer for an off-plan or primary-market purchase, detailing the price, payment plan, specifications, completion date and both parties’ obligations.

The resale market of completed properties sold by existing owners rather than developers. Transactions typically involve a Form F (MOU), developer NOC and a transfer at the DLD.

A refundable sum paid by a tenant at the start of a tenancy — typically 5% of annual rent for unfurnished and 10% for furnished homes — returned at the end of the lease subject to the property being in good condition.

Recurring fees paid by owners for the maintenance of common areas, security, cleaning and shared facilities, set per community and regulated through the DLD’s Mollak system.

A reserve within the service-charge budget set aside for major long-term repairs and replacements — such as lifts, façades or roofing — so large future costs do not fall on owners as sudden one-off charges.

Inspecting a newly handed-over property for defects and unfinished work so the developer can rectify them, usually during a defects-liability period, before you move in or lease the property.

The official legal document issued by the Dubai Land Department that proves ownership of a property, showing the owner’s name, property details and area. It is the definitive record of freehold ownership.

The Dubai permit system through which brokers obtain a licence number to advertise a property legally. A valid Trakheesi permit number on a listing confirms the advertisement is authorised and RERA-compliant.

A DLD-approved registration centre where property transfers are completed and title deeds issued. Buyer and seller (or their representatives) meet here to finalise the transaction, and a trustee fee applies.

A long-term right to use and benefit from a property owned by another party — including leasing it out — for a fixed term of up to 99 years, without owning the underlying asset. It is common in leasehold arrangements.

A bank- or RICS-certified assessment of a property’s market value, used for mortgage approval and sale purposes. Lenders base the loan amount on the valuation figure, which can differ from the agreed price.

A period during which a rental property sits empty and earns no income, for example between tenants. Minimising voids through good management and pricing is central to protecting an investment’s net yield.