Freehold vs Leasehold in the UAE: What Foreign Buyers Need to Know

Foreign nationals can own property in the UAE, but only in areas each emirate has designated for it. The type of ownership matters as much as the location.

Freehold

Freehold means you own the property — and your share of the land — outright and without a time limit. You can sell it, rent it, mortgage it and pass it on to your heirs. In Dubai, foreign ownership has been possible since 2002 and is governed by Law No. 7 of 2006, which limits it to designated freehold areas.

Most of the areas international buyers know are freehold: Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, Jumeirah Village Circle, Dubai Hills Estate and many more.

Leasehold

Leasehold gives you the right to use the property for a fixed term — up to 99 years — after which it returns to the freeholder unless extended. You can usually sell the remaining term or rent the property out, but you do not own the land. Leasehold is found in some older or centrally located districts.

Usufruct and musataha

These are long-term rights to use (usufruct) or to build on and use (musataha) a property, for a set number of years. They are more common in Abu Dhabi and for commercial property.

Other emirates

• Abu Dhabi: foreigners can own freehold in designated investment zones, including Yas Island, Saadiyat Island, Al Reem Island and Al Raha Beach.
• Sharjah: foreign ownership is permitted in specific approved projects, such as Aljada.
• Ras Al Khaimah and Ajman: freehold in designated developments, for example Al Marjan Island, Al Hamra Village and Al Zorah.

How to check

• Ask to see the title deed — it states the type of ownership.
• For off-plan, check that the project is registered with the land department of that emirate.
• If the listing says “GCC nationals only” or “UAE nationals only”, it is not in a freehold area.

Every area guide on our site says whether foreigners can buy there. Start with the area guides or browse freehold properties for sale.

Fees and rules change. Confirm current figures with the Dubai Land Department (DLD) or your advisor before you commit — this guide is general information, not legal or financial advice.