Many investors and end users have questions about ownership of property in Dubai. As each emirate is entitled to create its own real estate laws, these regulations apply only to Dubai. In Dubai, there are two types of ownership – freehold and leasehold.

Freehold Freehold title is ownership of the both the land and the structure for an indefinite period of time. Freehold property can be sold, leased or devised (inherited by heirs) freely by the owner. UAE and other GCC nationals are allowed to purchase property anywhere in Dubai. Other foreign nationals are restricted to purchasing within Designated Areas (also known as Freehold Areas) of Dubai. There are currently around 50 Designated Areas, although no official list or map of all of the Designated Areas exists at this time, most real estate brokers are familiar with them.

Leasehold Leasehold title is ownership of a temporary right to the structure, but not the land. In Dubai this is from a period of more than 10 years to 99 years. The leasehold owner will have his interest registered with the Dubai Land Department, and receive a Title Deed with his leasehold interest. The leasehold title owner can sell or devise the property for the remaining balance of time in the Leasehold Agreement. At the end of the leasehold term, the parties (or their heirs) can decide to renew the agreement, if not, the property reverts back to the land owner. As with freehold property, in Dubai, UAE/GCC nationals may own leasehold rights anywhere, and foreign nationals are limited to Designated Areas. Although leasehold properties can be found in many areas of Dubai, the two predominantly leasehold areas are the Green Community in Dubai Investments Park and Silicon Oasis.

The decision of whether to purchase a freehold or leasehold property will be based on whether the purchaser is comfortable with the idea of not owning the land, and only owning rights to the property for a limited amount of time. Also, price is a consideration, as leasehold properties tend to be cheaper than freehold.

This blog is intended for informational purposes only, and should not be considered legal advice.