DUBAI REAL ESTATE MARKET TERMINOLOGY FOR INVESTORS

Dubai remains a top destination for global investors, though some may face challenges. These challenges largely stem from differences in local laws and market regulations compared to other countries. In Dubai, there are several mandatory requirements that investors must fulfill before purchasing property. These include buying real estate in designated freehold zones and registering the property with the Dubai Land Department. Dubai also has its own set of rules and terminology that may differ from other emirates. As such, understanding the specifics of the local market will make navigating the investment process much smoother.

General Terminology in the Dubai Real Estate Market

• OFF-PLAN – This refers to properties that are currently under construction but available for sale. Payments are typically made in installments as the construction progresses. The Dubai Land Department oversees these transactions to ensure the protection of both investors and developers.

• FREEHOLD – Foreigners without UAE residency can purchase property only in designated freehold areas. There are around 60 such zones in Dubai, including both central and suburban locations. More details on these zones are covered in a separate article.

• EMIRATES ID – An identity card issued to all UAE citizens and residents.

• GOLDEN VISA – A special Dubai government program designed to attract more investment to the emirate. One way to qualify for a Golden Visa is by investing a specified amount in business or residential real estate. The program grants residency to the investor and their family for several years, with the option to obtain full UAE citizenship.

• AL SA'FAT – A term used to describe a construction system that adheres to high environmental sustainability standards. This applies to all types of residential developments, from apartment complexes to villas and townhouses.

• DLD – The Dubai Land Department, the regulatory authority overseeing all real estate transactions and new construction projects in the emirate. If you plan to sell or rent out a property, you must register the transaction with the DLD.

• IJARAH – A rent-to-own system where tenants pay monthly rent until they have fully paid for the property. Upon completing the payments, the tenant becomes the full owner of the property.

Licenses and Services for Working with Dubai Real Estate

• DEWA – The Dubai Electricity and Water Authority is the sole provider of utility services in the emirate, covering electricity and water. DEWA offers various convenient platforms for bill payments and utility connections, including a website, service centers, and a mobile app.

• EJARI – An online database that stores all long-term real estate lease agreements. Property owners must register their rental agreements in the Ejari system when leasing out their properties.

• Holiday Home Permit – A license required for short-term rentals. Investors who hold this permit can lease up to eight properties, provided they also have a Unit Permit.

• Unit Permit – A permit granted after an apartment is registered in the Dubai Tourism and Commerce Marketing (DTCM) system, allowing the property to be rented out on a short-term basis.

• NOC – A No-Objection Certificate from the developer, required when selling a property to a third party. It certifies that the property owner has no outstanding debts.

• FORM F – A purchase agreement between the developer and the buyer, detailing the price, payment schedule, and other terms of the property purchase.

• MAKANI – A building numbering system implemented in Dubai, where each building is assigned a unique 10-digit code for easy identification.

Differences in Terms Across Emirates

While most of the terminology and services are consistent throughout the UAE, some emirates use different systems for real estate transactions and investor dealings. Here are some examples:

• Ejari (Dubai) vs. Tasdeeq (Ajman) – Both systems serve as databases for registering rental agreements, but Ajman uses Tasdeeq instead of Ejari.

• Tawtheeq (Abu Dhabi) – Similar to Ejari, Tawtheeq is used to register rental agreements in Abu Dhabi. Notably, the registration process can take up to a month.

• Estidama (Abu Dhabi) – This program is similar to Al Sa’fat in Dubai, focusing on sustainable development and environmentally friendly construction practices in new developments.

  
  

Understanding these nuances will help investors navigate the real estate market more efficiently and avoid potential challenges.