Freehold vs. Leasehold Property in Dubai

Ownership Types

• What is the difference between freehold and leasehold when buying off-plan in Dubai?

  In Dubai, freehold property ownership gives you full ownership of the property and land indefinitely, allowing you to sell, lease, or transfer it freely. In contrast, leasehold ownership grants the right to use the property for a fixed period (usually 30 to 99 years), after which ownership reverts to the landlord or developer. Freehold areas are typically available to all buyers, including expatriates, while leasehold properties may have restrictions based on location or developer policies. 

• Can expatriates buy freehold properties in Dubai?

  Yes, expatriates can buy freehold properties in designated areas across Dubai. These areas allow foreign buyers to own property outright with full rights to sell, lease, or transfer ownership. Dubai’s government has developed many freehold communities to encourage foreign investment, making it one of the most accessible real estate markets for international buyers. 

• What are the ownership rights under a leasehold property?

  Under a leasehold property arrangement in Dubai, buyers have the following rights:

  • Right to use and occupy the property for a fixed lease term (usually between 30 to 99 years)
  • Right to sell or transfer the leasehold interest within the lease period (subject to developer or landlord approval)
  • Responsibility for property maintenance and fees during the lease term
  • No ownership of the land, which remains with the landlord or developer
  • Lease expires at the end of the term, after which ownership reverts to the landowner

• How long is a typical leasehold period in Dubai?

  The typical leasehold period in Dubai ranges from 30 to 99 years, depending on the agreement between the buyer and the landowner or developer. Leasehold terms are fixed and clearly stated in the contract, after which ownership rights revert back to the original owner.

• Are there differences in fees or taxes between freehold and leasehold properties?

  Yes, there are differences in fees and taxes between freehold and leasehold properties in Dubai. Both typically incur Dubai Land Department (DLD) registration fees, which are around 4% of the property price. Leasehold properties often have a lower initial cost compared to freehold, but may involve additional long-term expenses such as lease renewal fees and registration charges.