Freehold vs leasehold property in Dubai

Property ownership in Dubai continues to attract global attention, with 2025 expected to see sustained interest from both investors and expats. Understanding the different types of ownership available is crucial for making informed real estate decisions.

Whether you're eyeing a property for personal use, rental income or long term capital appreciation, knowing the difference between freehold and leasehold ownership could be the difference between a sound investment and an unexpected headache.

In this guide, we break down the essentials of property ownership types in UAE, compare freehold vs leasehold Dubai properties and help you determine the best fit based on your goals.
 

Understanding property ownership types in Dubai

Dubai offers two main types of property ownership: freehold and leasehold. The rules around who can buy what type of property vary depending on nationality and location.

• Freehold properties can be bought outright by foreign nationals in designated areas. Buyers have full ownership of the property and the land it sits on.
   
• Leasehold properties typically grant a lease term ranging from 10 to 99 years. Ownership reverts to the freeholder after the lease expires unless renewed.

These frameworks are regulated by the Dubai Land Department (DLD) and vary slightly for Emiratis, GCC nationals and non-GCC expatriates.
 

What is freehold property in Dubai?

Freehold ownership gives buyers absolute ownership rights over both the property and the land. You can:

✔ Sell
✔ Lease
✔ Renovate
✔ Pass the property on through inheritance

This model is particularly attractive to expats and international investors.

Popular freehold zones

• Dubai Marina
• Downtown Dubai
• Arabian Ranches
• Mirdif Hills

See the full list of freehold areas in Dubai

Freehold property is often the preferred option for those seeking long term security, Golden Visa eligibility and high resale value.
 

What is leasehold property in Dubai?

Leasehold ownership grants the right to use a property for a set number of years (typically 10 to 99). The land remains with the freeholder and your rights may be limited when it comes to modification or resale.

At the end of the lease period, ownership reverts back to the original landowner, unless renewed. Leasehold contracts may allow for renewal, but terms vary by agreement.

Common leasehold areas in Dubai

• Umm Suqeim
• Jumeirah
• Al Barsha

Explore leasehold areas in Dubai

While leasehold is less common among expats, it may offer access to locations that are otherwise unavailable for foreign buyers.
 

Freehold vs leasehold – What’s the difference?

Ownership rights and control

Freehold owners enjoy full autonomy. You can renovate, sublet or sell without needing landlord permission. Leasehold rights are more limited, often requiring consent for major changes.

Freehold also allows for inheritance and succession planning, which leasehold does not always guarantee.

Duration of ownership

• Freehold: Unlimited ownership.
• Leasehold: Time-limited (10–99 years), with renewal depending on lease agreement.

Renewal negotiations can be complex and may involve added fees.

Costs and government fees

Freehold:

✔ DLD registration fee: 4% of property value
✔ Title deed issuance
✔ Oqood registration (for Off Plan properties)

Leasehold:

✔ Lower upfront costs in some cases
✔ Ongoing lease fees
✔ Renewal charges (if applicable)

Both models may include annual service charges and maintenance fees depending on the property type.

Financing and mortgages

Freehold properties are easier to finance via UAE banks. Most banks offer standard mortgage options with long tenures.

Leasehold properties can be harder to finance. If available, mortgages tend to have:

• Shorter tenures
• Stricter conditions

Mortgage approval may depend on lease duration and remaining term.

Investment potential and resale value

Freehold:

✔ Higher resale value
✔ More attractive to long term investors and international buyers
✔ Eligible for Golden Visa opportunities

Leasehold:

✔ Lower purchase prices in prime locations
✔ Less attractive for capital appreciation
✔ Better suited for temporary or midterm living

Use cases – who is each type suited for?

Freehold:

✔ Foreign investors
✔ Long term residents
✔ Buyers seeking UAE Golden Visas

Leasehold:

✔ GCC nationals looking for short term flexibility
✔ Residents needing access to non-freehold zones
✔ Budget-conscious buyers prioritising location
 

Which is better for property investors in Dubai?

From an investment standpoint, freehold properties generally offer better ROI and resale opportunities, especially in sought after areas like Downtown Dubai, Business Bay and Dubai Hills Estate.

However, leasehold can provide affordability and location-specific value for those with smaller budgets or shorter holding periods.

When deciding, consider:

✔ Your investment timeline
✔ Desired location
✔ Liquidity needs

Review our Dubai Real Estate Investment Playbook for detailed guidance.
 

Common mistakes non-resident investors should avoid

Investing in Dubai property from abroad can be rewarding, but avoid these common errors:

• Not understanding regulations: Foreigners cannot buy freehold property in every area.
• Skipping due diligence: Always verify developer credibility, service charges and building history.
• Forgetting exit strategies: Consider resale and rental potential before buying.
• Underestimating ongoing costs: Annual service charges and maintenance fees can be significant.

Ensure your Dubai property ownership for expats aligns with long term goals.