Understanding Dubai Property Ownership: Freehold vs Leasehold Explained

Property Ownership in Dubai

Dubai offers two main types of property ownership: freehold and leasehold. Understanding these types is crucial for making informed investment decisions.

Freehold Ownership

Freehold ownership grants complete ownership rights over both the property and the land it stands on. Owners can sell, lease, or transfer the property without restrictions. Most popular areas including Dubai Marina, Downtown Dubai, Business Bay, and JVC are designated freehold zones.

Leasehold Ownership

Leasehold provides ownership rights for a fixed period, typically 99 years. While less common for residential properties, some areas still operate under leasehold arrangements. At lease end, ownership may revert to the landlord unless renewed.

Foreign Ownership Areas

Expats can purchase property in designated freehold areas including: Dubai Marina, Downtown Dubai, Business Bay, Dubai Sports City, Jumeirah Village Circle/Triangle, Arabian Ranches, Palm Jumeirah, and Dubai Silicon Oasis.

Benefits of Freehold Ownership

Complete ownership, potential for capital appreciation, ability to mortgage the property, rental income opportunities, and eligibility for investor residence visa (for properties over AED 750,000).

Legal Considerations

All property transactions must be registered with Dubai Land Department (DLD). Work with licensed brokers like ATAM Properties to ensure compliance with all regulations and smooth transfer of ownership.