The Dubai real estate market presents a multitude of opportunities. Whether you’re seeking a major investment, the perfect family home, or a career as a real estate agent, the options are endless. However, before diving in, it’s essential to understand some of the terminology specific to Dubai’s real estate sector. We’re here to help you with that!
Real Estate Terms in Dubai: Regulatory Bodies and Frameworks
This glossary of real estate terms begins with an overview of the regulatory agencies and procedures responsible for ensuring the smooth operation of real estate businesses. These agencies also oversee the legitimacy of transactions within the industry.
Dubai Land Department (DLD)
In Dubai, the main regulatory body for real estate is the Dubai Land Department (DLD). This organisation is responsible for overseeing and ensuring safe and transparent real estate transactions in the city. As a government agency, it provides a robust regulatory framework, a mechanism for dispute resolution, and various customer services to protect the interests of investors, landlords, and tenants.
Read more about: All you need to know about DLD’s Deposit Service
Real Estate Regulatory Authority (RERA)
The Real Estate Regulatory Agency (RERA Dubai), a division of the DLD, establishes the regulations for the Dubai real estate market. These guidelines encompass everything from local laws regarding renting and purchasing property to the legalization and registration of various real estate transactions through specific RERA forms.
The Rental Disputes Center (RDC)
Located in the Dubai Land Department building in Deira, the Rental Dispute Center (RDC) ensures the swift and effective resolution of rental disputes in Dubai, fostering a vibrant real estate market for both landlords and tenants. The RDC is a crucial part of our glossary of real estate terms in Dubai, as it addresses rental disputes and tenancy law violations that the involved parties are unable to resolve independently.
Makani
“Makani,” which translates to “my location” in Arabic, is a digital navigation system that employs a unique 10-digit identification code known as the “Makani number.” This system is used to pinpoint every public space, building, and residence in Dubai.
Al Sa’Fat
If you work in the construction industry, it’s important to be familiar with the term “Al Safat” in relation to Dubai real estate. Also known as the Dubai Green Building System, Al Safat regulates and promotes sustainable construction practices in the UAE.
Trakheesi
An essential Arabic term for aspiring real estate agents is “Trakheesi,” which is relevant in Dubai. The Trakheesi system provides licenses and permits to brokerage companies and real estate agents operating in the city.
Dubai Real Estate Terms: Ejari – Specialized Contracts and Services
Ejari is certainly one of the most commonly used real estate terms in Dubai, whether you’re a tenant or a property owner. Ejari refers to the standardized process for registering tenancy agreements in Dubai. To access various essential services in the city, such as securing a new connection with the Dubai Electricity and Water Authority, signing up for phone and internet services, and even sponsoring dependents, you must be registered with Ejari.
Oqood
Oqood is a key term in the study of commercial and residential real estate, particularly regarding off-plan properties. Similar to the Ejari system, Oqood automates, registers, and manages off-plan real estate transactions in Dubai. Additionally, this platform offers real estate developers various services to ensure transparency in the management of their off-plan developments.
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Musataha
In Dubai and the United Arab Emirates, a real estate agreement known as “Musataha” allows you to lease land from the owner for up to 50 years, enabling you to build a home or utilize it for other approved purposes. Any structures erected on land obtained through Musataha operate similarly to leasehold ownership. Once the lease term ends, the builder’s rights to the land and any improvements are forfeited. The duration that the lease is valid is referred to as the lease period.
Commercial and Residential Real Estate Terms in Dubai
Freehold
In Dubai, a buyer of freehold property holds full legal rights until they decide to sell it to someone else. Foreign investors looking to enter the real estate market can purchase properties designated as freehold, but only in certain areas of Dubai.
Leasehold
Buyers are allowed to use and occupy a leasehold property for a specified duration. In Dubai, an initial leasehold term of 99 years can be renewed.
BUA
The total area being developed on the property is known as the BUA (Built-Up Area). It represents the gross floor area of a building or multi-story structure.
Saleable Area
The next term in our glossary of real estate terms in Dubai is “saleable area.” This phrase refers to the total square footage of the property’s gross floor area. Common or shared spaces, such as elevators, hallways, lobbies, and staircases, are not included in the saleable area.
SPA
A Sales and Purchase Agreement (SPA) is one of the most frequently used terms in Dubai’s real estate market. The SPA is a legally binding document between the buyer and seller that details the terms and conditions of the sale.
POA
A power of attorney (POA) legally designates a representative to act on behalf of the individual who issues the POA in their absence. Any decisions made by the appointed representative, as well as any documents they sign, are binding. By law, a POA must have the appropriate notarizations and attestations.
Title Deed
The Dubai Land Department accepts and registers title deeds, which serve as proof of ownership. This document officially registers a particular property with the appropriate emirate authorities.
Form ‘A’ & ‘B’
There are two different types of forms involved. Both are mandated by RERA and create a contractual obligation between the parties. Form ‘A’ is signed by both the buyer and the agent; it outlines their working relationship and highlights the agent’s responsibilities. Therefore, signing Form ‘A’ is essential when hiring an agent. The same principles apply to Form ‘B,’ which must be signed by the seller and the agent.
Escrow Account
Escrow accounts function as a form of third-party funding. Once an escrow agreement is finalized, the seller gains access to the funds transferred by the buyer.
Post-Handover Payment Plan
The payment that is due after the building is completed and the owners receive their keys is known as the “Post-Handover Payment Plan.”
Snags
Any potential issues that may occur in newly built homes.
Non-freehold property
Any property that can be purchased exclusively by UAE citizens or GCC nationals.
Furnished Accommodation
Furnished accommodations include all essential amenities.
Unfurnished Accommodation
A place to stay that is unfurnished, with kitchen appliances potentially available or not.
Gated community
Residences in new freehold developments that feature security gates and 24-hour surveillance.
Off-Plan Property
Off-plan properties are those that have not yet been constructed or are currently in the process of being constructed by the developer. Dubai’s off-plan property market is vast. These are popular due to the exceptional payment options and rewards they offer.
Completion Bond
A completion surety guarantees that the constructor will finish his project for off-plan properties. The insured party may be a lender or a seller.