Buying Property

Freehold vs Leasehold – What's the Difference?

Understand the types of property ownership in the UAE.

Updated: September 2026 5 min read

Freehold vs leasehold in Dubai comes down to time. Freehold means you own the property outright, with no end date. Leasehold, and the similar usufruct right, lets you use and benefit from a property for a fixed term of up to 99 years. When the term ends, your rights end with it.

What Dubai law says

Dubai Law No. 7 of 2006 on Real Property Registration (Article 4) lets non-UAE nationals hold two kinds of rights in areas the Ruler designates: freehold ownership without time restriction, or usufruct or leasehold for up to 99 years. Regulation No. 3 of 2006 lists the designated plots. Most allow either right, but one plot in Nad al-Sheba (Plot 224) is open to foreigners on usufruct or leasehold only. So a property being in a designated area does not by itself tell you which right you are buying. For who may buy at all, see Who Can Buy Property in the UAE?

What freehold means

You own the property with no expiry date and can sell it, rent it out, mortgage it or leave it to your heirs.
In an apartment building, the building is registered as one property and the register records each owner's apartment and the common areas (Law No. 7 of 2006, Article 23).
Owners in shared buildings and communities pay annual service charges for the common parts (Law No. 6 of 2019, Article 25).
Your ownership is proved by the title deed, which the law gives absolute evidentiary value (Law No. 7 of 2006, Article 24).

What leasehold and usufruct mean

You hold the right to use the property, and usually to take income from it, for a fixed term. The landowner keeps ownership.
In Dubai the term cannot exceed 99 years, and the Dubai Land Department is the only body that registers these long-term leases (Law No. 7 of 2006, Article 6).
What you may do during the term, such as sub-letting, altering or selling on the remaining term, depends on the contract. Read it before you pay.
The right shrinks every year. The less time is left, the less you have to sell, so ask any bank whether it will lend against a leasehold interest and on what terms.

Leasehold is not the same as renting

A long leasehold is a registered property right bought for a lump sum. An ordinary tenancy is a rental contract, usually for a year at a time, registered on Ejari and governed by Dubai's landlord and tenant law. Buying a 99-year leasehold does not make you a tenant, and renting a flat does not give you a leasehold.

How to tell which one you are buying

Ready property: ask for the title deed. Any conditions or restrictions on the right are recorded against the unit in the DLD register (Law No. 7 of 2006, Article 24).
Check the deed is genuine with the DLD's online Title Deed Verification service, using the deed number, year and property type.
Off-plan: the sale and purchase agreement and the Oqood registration certificate should state the type of right. If they do not, ask the developer in writing.
Other emirates set their own rules on foreign ownership. Check with that emirate's land department.

Before you commit

Confirm in writing whether the right is freehold, leasehold or usufruct, and for how long.
For leasehold, note the start date and the years left, and read the renewal and end-of-term terms.
Ask what happens to buildings on the land when a leasehold ends.
Check the annual service charges for the building before you sign.
Get independent legal advice for anything other than a standard freehold unit.

Frequently asked questions

What happens when a 99-year leasehold ends in Dubai?

Your rights end with the term. Leasehold and usufruct let you use a property for a fixed period while the landowner keeps ownership, so read the renewal and end-of-term terms and ask what happens to buildings on the land when the leasehold ends.

Is a leasehold the same as renting a property?

No. A long leasehold is a registered property right bought for a lump sum. An ordinary tenancy is a rental contract, usually for a year at a time, registered on Ejari and governed by Dubai's landlord and tenant law.

How do I know if a Dubai property is freehold or leasehold?

For a ready property, ask for the title deed: any conditions or restrictions on the right are recorded against the unit in the DLD register. For off-plan, the sale and purchase agreement and the Oqood certificate should state the type of right; if they do not, ask the developer in writing.

Can I get a mortgage on a leasehold property?

Ask each bank before you buy. A leasehold right shrinks every year, and the less time is left, the less you have to sell, so check whether a bank will lend against a leasehold interest and on what terms.

Sources

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