Glossary of Terms for real estate in the UAE
Glossary of Terms for real estate in the UAE
Common terms and abbreviations used in buying or renting UAE property.
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This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
There are certain terms that come up in real estate in The United Arab Emirates that you may not be familiar with. These terms are useful to know when looking into real estate and living in the UAE.
UAE
United Arab Emirates is a constitutional federation made up of 7 emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah
EMIRATE
A political territory that is ruled by a dynastic Islamic monarch styled emir. It also means principality.
DEWA
Dubai Electric and Water provide power and water.
DIRHAM
The UAE Dirham (AED or Dhs) is the currency, which is divided into 100 fils which is used across the UAE.
EIBOR
The Emirates Interbank Offered Rate, set by the Central Bank of the UAE which oversees the national economy and stability of the currency.
FREEHOLD
A property arrangement meaning you own the property and the land it sits on.
INVESTMENT ZONES
Expats are allowed to purchase interests in properties located only in areas of Abu Dhabi known as Investment Zones.
LEASEHOLD
A property arrangement which can limit the period of ownership ranging from 30-99 years.
MOU
Memorandum of Understanding is a formal agreement between two or more parties to establish official partnerships. MOUs are not legally binding but they carry a degree of seriousness and mutual respect, stronger than a gentlemen's agreement.
MUSATAHA
A 50-year development lease which allow you to build on undeveloped land.
NOC
No Objection Certificate is a legal certificate issued by any agency, organization, institute or in certain cases, an individual, that does not object to the covenants of the certificate.
OFF-PLAN
A property which has not been completed but is available for purchase (alternative to ‘resale’).
RERA
Real Estate Regulatory Agency.
RESALE
An existing property and available for purchase (alternative to ‘off-plan’).
USUFRUCT
A lease where you can enjoy 99-years leases of already built-up land.
If you are unsure of any terminology or meanings, it is recommended to consult your local professional real estate agent and lawyer.
See also:
How to buy and rent property in the UAE
This article and the above linked artciles are not complete and are intended as preliminary guides only. These guides refer to some elements to consider prior to starting any property dealings or due diligence. Property dealings are often complex areas, especially in foreign countries and we highly recommend you seek independent professional advice... read more...
