Leasehold
Leasehold: A form of property ownership granting use rights for a fixed period (typically 30–99 years) in Dubai.
What is Leasehold?
Leasehold ownership in Dubai grants the buyer use and occupancy rights to a property for a fixed term, typically 30, 50, or 99 years. At the end of the lease term, ownership reverts to the underlying landowner (often a government entity or the master developer). Leasehold is less common than freehold in Dubai's designated foreign-friendly zones (most are freehold), but some older Bur Dubai and Deira mixed-use buildings, some Sharjah developments, and certain Abu Dhabi communities operate under leasehold. Leasehold property can be sold, inherited, and rented out during the lease term but cannot be held indefinitely. Pricing is typically 10–25% below comparable freehold properties to reflect the time-bound rights. Mortgages on leasehold property are available but with shorter tenors (banks won't fund a 25-year mortgage on a 30-year-left lease).
Example
A leasehold apartment in a Bur Dubai mixed-use building sold to a foreigner for AED 900,000 (vs ~AED 1.2M for a comparable freehold unit) on a 99-year lease starting 2020. The buyer can live in or rent the property until 2119; thereafter ownership reverts to the underlying landowner.
FAQ — Leasehold
Can foreigners buy leasehold property in Dubai?+
Yes — leasehold is available to foreigners in most areas (more areas than freehold). The pricing discount reflects the time-bound rights.
What happens at the end of a 99-year lease?+
Ownership reverts to the underlying landowner unless the lease is renewed. Most Dubai 99-year leaseholds are still in their early decades, so this hasn't been tested yet — practice in mature markets (UK, HK) varies from renewal at modest fees to outright reversion.
Related terms
Last refreshed: 2026-05-26