Dubai real estate terms, explained

Freehold

Full, perpetual ownership of a property and the land it sits on. In Dubai, foreign nationals can own freehold property within designated freehold areas, which cover most investor communities.

Leasehold

The right to occupy and use a property for a fixed term (commonly up to 99 years) without owning the land outright. Less common than freehold for investor stock.

Off-plan

A property purchased from a developer before completion, paid for over a schedule tied to construction milestones or fixed dates, with handover on delivery.

Ready property

A completed property available for immediate handover and rental, offering income certainty versus the delivery risk of off-plan.

DLD (Dubai Land Department)

The government authority that registers and regulates real estate transactions in Dubai. It charges a property transfer fee of 4% of the purchase price.

RERA (Real Estate Regulatory Agency)

The regulatory arm of the DLD that licenses developers and brokers, oversees escrow accounts, and sets the rules that protect buyers.

ORN (Office Registration Number)

A RERA-issued number identifying a licensed real estate brokerage or office. A visible ORN signals a registered, regulated firm.

Oqood

The DLD's official registration of an off-plan sale, recording the buyer's interest in a unit before the title deed is issued at handover.

Title Deed

The official DLD document proving ownership of a completed property. Issued to the buyer once the unit is handed over and registered.

SPA (Sale and Purchase Agreement)

The binding contract between buyer and developer (or seller) setting out the price, payment plan, specifications, and handover terms.

Escrow account

A regulated, project-specific account into which off-plan buyer payments must be deposited. Funds are released to the developer against verified construction progress, protecting buyers.

Service charge

An annual fee per square foot paid by owners for the upkeep of shared areas and amenities. It varies widely by building and is the main reason gross and net yield diverge.

Sinking fund

A reserve, funded through service charges, set aside for major future repairs and replacements (lifts, façades, etc.).

Gross yield

Annual rent divided by the property's purchase price, expressed as a percentage — before costs such as service charges and management.

Net yield

Annual rent less running costs (service charges, management, maintenance) divided by the purchase price — the figure that reflects true cash return.

Capital appreciation

The increase in a property's market value over time, separate from the rental income it produces.

Payment plan

A developer's schedule of instalments for an off-plan purchase, tied to construction milestones or fixed dates, with a final amount on handover.

Post-handover payment plan

A payment plan that lets the buyer continue paying instalments after taking possession of a completed unit, easing cash flow.

LTV (Loan-to-Value)

The share of a property's value a bank will lend. UAE residents can typically borrow more than non-residents, who often need a larger down payment.

Golden Visa

A renewable 10-year UAE residency. A property investment of AED 2 million or more can qualify the owner, subject to current rules.

Ejari

The mandatory registration system for tenancy contracts in Dubai, which formalises the landlord-tenant relationship.

NOC (No Objection Certificate)

A developer-issued letter confirming no objection to a sale or transfer, often required to resell an off-plan unit or transfer ownership.

Snagging

The inspection of a newly completed unit to identify defects for the developer to fix before or shortly after handover.

Handover

The point at which a completed property is delivered to the buyer, who then takes possession and can register the title deed.

Usufruct

A long-term right to use and benefit from a property (including renting it out) for a defined period, without owning it outright.

DEWA

The Dubai Electricity and Water Authority — the utility provider; accounts must be set up on handover or tenancy.

Want any of these applied to a specific deal? Start with our complete Dubai investment guide or book a consultation.