Last updated on December 23rd, 2025 at 07:38 am
Buying property in Dubai can feel confusing if you’re unfamiliar with real estate terms. Words like freehold, leasehold, Ejari, DLD fee, Oqood, and service charges are commonly used, but not always clearly explained.
This Dubai Property Terminology Guide breaks down the most important real estate terms every buyer must know, explained in simple, beginner-friendly language. Whether you’re an expat, first-time buyer, or investor, this guide will help you avoid costly mistakes.
Why Understanding Dubai Property Terminology Is Important?
Dubai’s real estate market follows specific laws and systems that may differ from those in other countries. Misunderstanding terminology can lead to:
- Unexpected costs
- Legal confusion
- Poor investment decisions
Knowing these terms helps you:
- Communicate better with agents
- Understand contracts clearly
- Make smarter property decisions
Freehold Property
Freehold property means you get full ownership of both the property and the land.
Key Points:
- Ownership is permanent
- Can be sold, rented, or inherited
- Available to foreigners in designated areas
Learn more: What Is Freehold Property in Dubai?
Leasehold Property
Leasehold property means you own the property for a fixed period, usually 30 to 99 years, but not the land.
Key Points:
- Ownership expires after the lease period
- Limited resale rights
- Less common for foreign buyers
DLD (Dubai Land Department)
The Dubai Land Department (DLD) is the government authority that regulates all real estate transactions in Dubai.
Role of DLD:
- Registers property ownership
- Collects registration fees
- Issues with title deeds
DLD Fee
The DLD fee is a mandatory government fee paid during property registration.
Important Details:
- 4% of property value
- Paid by the buyer (usually)
- Required for ownership transfer
Title Deed
A title deed is an official document issued by the DLD that proves property ownership.
Includes:
- Owner’s name
- Property details
- Registration number
Without a title deed, ownership is not legally complete.
Ejari
Ejari is an online rental registration system used in Dubai.
Why Ejari Is Important:
- Makes rental contracts legal
- Required for DEWA activation
- Protects tenant and landlord rights
Read more: What Is Ejari in Dubai?
Oqood
Oqood is the registration system used for off-plan properties (under-construction projects).
Key Facts:
- Used before project completion
- Links the buyer to the developer
- Converted into a title deed after handover
Off-Plan Property
Before construction is finished, an off-plan property is bought.
Common Features:
- Lower initial prices
- Flexible payment plans
- Higher risk compared to a ready property
Related comparison: Off-Plan vs Ready Property in Dubai
Ready Property
A ready property is entirely constructed and prepared to move in or rent out.
Benefits:
- Immediate rental income
- Lower risk
- Easier mortgage approval
Service Charges
Service charges are annual fees paid by owners for building maintenance.
Includes:
- Security
- Cleaning of common areas
- Maintenance of facilities
Charges vary by building and location.
Maintenance Fees
Maintenance fees cover repairs inside the apartment, unlike service charges.
Examples:
- Plumbing repairs
- Electrical issues
- AC maintenance
Mortgage
A mortgage is a loan provided by a bank to buy property.
Key Points:
- Available for residents and non-residents
- Requires a minimum down payment
- Subject to bank approval
Down Payment
The down payment is the upfront amount paid by the buyer.
Typical Rates:
- Residents: around 20%
- Non-residents: around 30–40%
Rental Yield
The amount of money a property makes in relation to its price is measured by its rental yield.
Formula:
Annual rent ÷ property price × 100
Related article: Rental Yield in Dubai Explained
Capital Appreciation
Capital appreciation refers to an increase in property value over time.
It’s essential for long-term investors planning to resell later.
Trustee Office
A trustee office is an authorized center where property transfers are completed.
Responsibilities:
- Verify documents
- Process ownership transfer
- Collect applicable fees
Power of Attorney (POA)
A Power of Attorney allows someone else to act on your behalf during property transactions.
Applicable for overseas buyers.
Final Thoughts
Understanding Dubai property terminology is essential before buying, renting, or investing. This guide gives you a solid foundation to navigate the Dubai real estate market confidently.
Whether you’re comparing properties, signing contracts, or calculating costs, knowing these terms will help you make smarter, safer decisions.
FAQs: Dubai Property Terminology
1. Is freehold property better than leasehold?
Yes, for long-term ownership and investment, freehold is generally better.
2. Is Ejari mandatory?
Yes, Ejari is mandatory for all rental contracts in Dubai.
3. What is Oqood used for?
Oqood is used to register off-plan property purchases.
4. Are service charges compulsory?
Yes, all property owners must pay service charges annually.
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