Freehold or leasehold in Dubai: what do you actually own?

In Dubai, freehold means you are registered as owner of the property and its share of the land, with no time limit. Leasehold means you hold a registered right to use someone else's land for a fixed term of up to 99 years, after which the property returns to the landowner. Both are recorded in the Land Department's Property Register and both carry a title deed (Dubai Land Department, Law 7 of 2006).

What can a foreign buyer legally hold in Dubai?

Non-UAE nationals may, in areas determined by the Ruler, be granted freehold "without time restrictions", or usufruct or leasehold "for a period not exceeding ninety-nine (99) years" (Dubai Land Department, Law 7 of 2006). Musataha, a right to build on another's land, is treated alongside them in the mortgage law of 2008 (Dubai Land Department, Law 14 of 2008). Each exists only once registered: a transaction creating or transferring it "will not be deemed valid unless recorded" in the Property Register (Dubai Land Department, Law 7 of 2006). A Dubai leasehold is a registered right, not a private contract.

What does each right mean in plain words?

Under a leasehold the land stays with the government or a private landlord (Bayut, 15 Jul 2025), and the leaseholder might pay ground rent where a freehold owner pays none (Betterhomes, 24 Mar 2026). Usufruct is a right under the UAE Civil Code to use and take the income of another's property; musataha is a right to build, own and use a building on another's land (Bayut, 12 Aug 2026), usually for 50 years (Bayut, 17 Aug 2026).

Where are the freehold and leasehold areas?

Freehold for foreign buyers is confined to designated areas, first listed by plot number in 2006 and extended since, now numbering dozens (Dubai Land Department, Regulation 3 of 2006). Trusted lists place Downtown Dubai, Dubai Marina, Palm Jumeirah, Dubai Hills Estate and JVC among them, noting that some areas "may also have leasehold properties" (Bayut, 31 Aug 2026; Betterhomes, 24 Mar 2026). Both sources name Green Community and Dubai Silicon Oasis as leasehold; Betterhomes adds Al Barsha, Umm Suqeim and Al Warqaa (Bayut, 7 Jul 2026; Betterhomes, 24 Mar 2026).

On 19 January 2025 the Land Department allowed owners on 457 plots on Sheikh Zayed Road and in Al Jaddaf to convert to freehold for 30 per cent of valuation, open to all nationalities, with eligibility checked in Dubai REST (Khaleej Times, 19 Jan 2025).

What does the title deed show?

The Land Department issues title deeds from the Property Register, and a deed has "absolute evidentiary value" (Dubai Land Department, Law 7 of 2006). Leasehold, usufruct and musataha title deeds exist alongside freehold deeds, so read the right and its expiry first (Bayut, 17 Aug 2026), and verify any deed free of charge on the department's website or in Dubai REST (Dubai Land Department, Verify Title Deed). A tenancy is different: it sits under landlord and tenant law, whereas a usufruct is registered with the department (Dubai Land Department, Frequently Asked Questions), as is a lease of more than 10 years (Bayut, 15 Jul 2025; Dubai Land Department, Law 14 of 2008).

For Davies+Harrison clients, the title deed, whatever right it records, sits with the contract, payments and every other document in D+H Invest, our private investor platform, and your adviser is a message away.

Can you mortgage, sell and pass on each?

Mortgage. The holder of a usufruct or a lease of 10 to 99 years "may mortgage his interest in the Real Property"; a musataha holder may mortgage the building, not the land. The lender must be licensed by the UAE Central Bank and the mortgage takes effect only on registration (Dubai Land Department, Law 14 of 2008).

Sale and letting. Freehold owners sell and let freely (Bayut, 7 Jul 2026). Leaseholders may sell and sublet, but alterations need the freeholder's written approval (Bayut, 15 Jul 2025); usufruct holders may let but may not make structural changes (Bayut, 12 Aug 2026).

Inheritance. Freehold passes to heirs (Bayut, 7 Jul 2026). A leasehold ends with its term, so ownership cannot pass beyond it (Betterhomes, 24 Mar 2026); usufruct rights can be inherited for the remaining term (Bayut, 12 Aug 2026). We advise a registered will: the DIFC Courts Property Will covers up to five UAE properties for AED 7,500, or AED 10,000 for mirror wills (DIFC Courts, Property Will).

What happens when a lease ends?

The property reverts to the freeholder; renewal is "subject to the lease agreement and the freeholder's approval" (Bayut, 7 Jul 2026; Betterhomes, 24 Mar 2026). Usufruct and musataha end the same way (Bayut, 12 Aug 2026). A lease is a wasting asset: the renewal clause and the remaining term deserve more attention than the headline price.

Who pays service charges and who has a say?

Law No. 6 of 2019 settles this: an "Owner" is a person registered as owner of a unit, "including the holder of a usufruct or long-term lease right". Leaseholders therefore stand where freeholders stand: each pays a share of the annual service charges; the management entity may not bill without RERA's approval; unpaid charges become a lien on the unit after notice and 30 days; and owners may sit on the RERA-appointed Owners Committee of up to nine members (Dubai Land Department, Law 6 of 2019). Approved charges per project are published in the Service Charge Index (Dubai Land Department, Service Charge Index).

Our view

In our experience, the buyers who regret a leasehold are the ones who priced it as freehold, and the buyers who dismiss it are the ones who never read the deed. We advise three checks before any offer on a non-freehold unit: read the right and its expiry on the registered deed; read the renewal and alteration clauses of the lease; and ask your lender in writing whether it will lend against that term.

Davies+Harrison is DAH Real Estate Brokerage L.L.C., RERA ORN 53447.