The key terms around buying property in Dubai, explained clearly and, where it counts, framed for your decision. No jargon for its own sake.
Off-Plan
Buying a property before or during construction, often with a payment plan.
Ready / Secondary Market
Completed properties from existing stock, ready to use or let immediately.
Freehold
Full, perpetual ownership, open to foreign buyers in designated zones.
Leasehold
Time-limited right of use, usually up to 99 years, without land ownership.
Title Deed
Official ownership certificate issued by the Dubai Land Department.
SPA (Sale and Purchase Agreement)
The binding purchase contract between buyer and seller or developer.
Oqood
Official registration of off-plan purchase contracts with the DLD.
NOC (No Objection Certificate)
The developer's clearance that nothing stands in the way of a sale.
Escrow Account
Trust account that protects buyers' off-plan payments.
Handover
Formal handover of the completed property to the buyer.
Snagging
Systematic defect inspection before the final handover.
Power of Attorney
Notarised power of attorney to complete the purchase remotely.
DLD Fee (4%)
Transfer fee of the Dubai Land Department, usually 4% of the purchase price.
Service Charge
Annual running costs for maintenance and shared areas, per square foot.
Payment Plan
Instalment structure for off-plan, such as 70/30 or 60/40.
Post-Handover Payment Plan
Part of the purchase price falls due only after handover.
Down Payment
First payment on purchase, often 10 to 20% of the price.
Agency Commission
The agent's fee, typically around 2% of the purchase price.
Golden Visa
Ten-year, renewable residence visa, e.g. from AED 2M in property value.
DLD (Dubai Land Department)
The land registry and registration authority for property in Dubai.
RERA
The DLD's regulator for developers, agents and projects.
Ejari
Official registration of tenancy contracts in Dubai.
DIFC Will
A will under common law for assets in the UAE.
Taxes in Dubai
No property, income or capital gains tax, but mind German rules.
Non-Resident Financing
Property loan without UAE residency, usually around 50% equity.
ROI / Gross Yield
Annual rental income relative to the purchase price, before costs.
Net Yield
Return after deducting all running costs, the realistic figure.
Capital Appreciation
Growth in the property's value over time, independent of rent.
Holiday Home
Short-term letting of furnished units, licensed via DET.
Community
A contiguous district, often planned by a master developer.