
Freehold vs Leasehold Property in Dubai
Dubai offers two main types of property ownership for buyers: Freehold and Leasehold. Understanding the difference between them is essential before making a purchase, as it affects your rights, responsibilities, and long-term options.
What Is Freehold Ownership?
Freehold ownership means that you own both the property and the land it sits on with no time limit. Your name is registered with the Dubai Land Department, and you receive a title deed confirming your full ownership rights. Freehold property can be sold, rented out, or passed on to heirs, giving buyers long-term security and control.
Foreigners are allowed to purchase Freehold property in designated areas of Dubai. Popular Freehold locations include Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, Jumeirah Lake Towers, and Dubai Hills Estate. In addition, buying Freehold property of a certain value may qualify owners for long-term UAE residency visas
What Is Leasehold Ownership?
Leasehold ownership gives the buyer the right to use a property for a fixed period, usually up to 99 years. While the buyer owns the building during the lease term, the land remains with the Freehold owner. At the end of the lease, ownership of the property returns to the landowner unless the lease is renewed.
Leasehold property is often more affordable than Freehold, making it an attractive entry point for buyers. However, certain restrictions may apply, such as needing approval for structural changes or limitations on usage rights like subletting or pet ownership. Leasehold properties are typically found in older developments and areas like parts of Jumeirah and Dubai Festival City.
Which Option Is Right for You?
The choice between Freehold and Leasehold depends on your goals. Freehold ownership offers maximum control and long-term security, making it ideal for buyers who see Dubai as a permanent base or want to pass the property on to family. Leasehold can be a good option for those seeking more affordable housing or buyers who plan to stay in Dubai for a limited period.
Both Freehold and Leasehold ownership structures are designed to give buyers flexibility while protecting their rights under Dubai law. By understanding the difference between the two, you can choose the type of property ownership that best fits your budget, lifestyle, and long-term plans.