What is the difference between freehold and leasehold properties in Dubai?
In Dubai, a freehold property gives you complete ownership of both the property and the land it stands on, while a leasehold property grants you the right to use the property for a fixed period, usually 30 to 99 years, after which ownership reverts to the freeholder.
So what does this mean for buyers and investors? Freehold offers greater flexibility, long-term security, and stronger resale potential, while leasehold can be more affordable and may appeal to those with specific short- to medium-term plans.
Freehold Properties
- Ownership: Buyer owns the property and the land outright.
- Eligibility: Available to both UAE nationals and foreigners in designated areas.
- Rights: Full rights to sell, lease, or pass on the property to heirs.
- Popular Areas: Downtown Dubai, Palm Jumeirah, Dubai Marina, and Dubai Hills Estate.
Leasehold Properties
- Ownership: Buyer leases the property for 30–99 years; land remains with freeholder.
- Rights: Can use, rent, or sell the lease within its term.
- Expiry: Ownership reverts to the freeholder when lease ends, unless renewed.
- Common Uses: Often found in established areas where freehold is restricted.
Pros & Cons at a Glance
| Aspect | Freehold | Leasehold |
| Ownership | Full ownership of land + property | Right to use property for lease term |
| Resale Value | Typically higher due to permanent ownership | Lower resale potential as lease term decreases |
| Cost | Higher entry price | More affordable in many cases |
| Investor Appeal | Favoured by expats & long-term investors | Useful for medium-term living or business needs |
In short, freehold property offers the strongest security and long-term value, while leasehold can be a more accessible option for those who do not require permanent ownership. Choosing the right option depends on your budget, goals, and how long you plan to stay invested in Dubai.