Glossary
Dubai property terms
The terms used in Ledgard reports and articles, explained in plain words.
Buying and fees
- Title deed
- The official record of ownership, issued by the Dubai Land Department once a property is registered in the buyer's name. It shows the owner, the property number, the area and the type of property.
- Title deed area
- The size of the property as registered on the title deed. For apartments it usually includes balconies and terraces, so it is often larger than the internal area quoted in some listings.
- Ledgard compares prices per square foot on the registered area, so that every figure is measured the same way.
- Land Department fee (4%)
- The transfer fee the Dubai Land Department charges when a property is registered to a new owner: 4% of the price, plus small administration and title deed charges. By convention the buyer pays it.
- Oqood
- The Land Department system that registers off-plan sales before the building is finished. The buyer receives an Oqood certificate instead of a title deed, and the title deed follows after handover.
- Memorandum of understanding (Form F)
- The standard sale agreement between buyer and seller on a resale in Dubai, set by RERA. It records the price, the deposit, the dates and who pays which costs. It is signed before the transfer at the Land Department.
- NOC (no objection certificate)
- A letter from the developer confirming it has no objection to the sale, usually because the service charges on the property are paid up. The Land Department needs it before it registers a transfer.
- RERA
- The Real Estate Regulatory Agency, the regulatory arm of the Dubai Land Department. It licenses brokers and agencies, approves service charges and sets the standard contracts.
- Trakheesi permit
- The permit an agency needs before it can advertise a property in Dubai. Each advert should carry its permit number, which can be checked against the listing.
- Freehold
- Full ownership of the property and the land beneath it, with no end date.
Off-plan
- Off-plan
- A property bought before it is built or finished, usually from the developer and usually paid for in stages. A ready property is one that is already built and can be lived in or let.
- Payment plan
- The schedule on which an off-plan buyer pays the developer: for example 10% on booking, payments during construction and the balance on handover or after it. The cost of paying later is usually built into the price.
- Escrow account
- A bank account opened for each off-plan project, into which buyers' payments must go under Dubai law. The developer can draw on it only as construction progresses.
- Interim register
- The Land Department register for properties that do not yet have a title deed, mostly off-plan units recorded through Oqood. A sale registered there is recorded as off-plan, even if the building is already finished.
- Handover
- The point at which the developer completes the property and gives the buyer the keys. The final payment is often due then, and the title deed is issued after it.
Prices
- Registered sale
- A sale recorded with the Dubai Land Department, showing the price actually paid. Ledgard builds its price evidence from registered sales only.
- Asking price
- The price a seller advertises. It shows what the seller hopes to receive, not what properties sell for, so it is never used as evidence of market price.
- Comparable sale
- A registered sale of a similar property, ideally in the same building, with the same number of bedrooms and within the last twelve months. Comparable sales are the evidence a price is judged against.
- Median
- The middle figure when all the figures are put in order: half are above it and half below. Unlike an average, it is not pulled up or down by one very high or very low sale.
- Middle half
- The range that holds the middle half of all the sales, leaving out the cheapest quarter and the most expensive quarter. It shows where most sales actually took place.
- Price per square foot
- The price divided by the size. It lets you compare properties of different sizes. One square metre is 10.764 square feet.
- Valuation
- An estimate of a property's value by a registered valuer, usually for a bank lending against it. A valuation can differ from the price at which the property sells.
Renting and running costs
- Ejari
- Dubai's system for registering tenancy contracts. Every lease must be registered there, which is why registered rents are reliable evidence of what tenants actually pay.
- Mollak
- The Land Department system for buildings with shared ownership. Service charges are approved and published there, building by building.
- Service charge
- The yearly fee an owner pays for the upkeep of the building's shared areas and services, charged per square foot and approved by RERA. It is paid by the owner, not the tenant.
- Gross yield
- The yearly rent divided by the price, before any costs. A property bought for AED 1,000,000 and let for AED 60,000 a year has a gross yield of 6%.
- Net yield
- The yearly rent after costs such as service charges, maintenance and management, divided by the price. It is what the property actually returns, and it is always lower than the gross yield.