EN
Contact us
Equipment Dehumidifiers Solutions Blog
ENRU

Blog

Little things — the atoms of life, or owning property in Dubai

As in any country, the UAE has its own rules, laws, and peculiarities.
For example, there are different types of property ownership here — LEASEHOLD and FREEHOLD — which may initially seem like a rather odd concept, especially when we're talking not about commercial real estate, but the purchase of an ordinary apartment.
The difference between these forms of ownership affects the buyer’s rights.

Initially, in 2001, the Dubai government granted foreigners the right to own property only under leasehold terms. The law allowing full ownership (freehold) was introduced a year later, and in Abu Dhabi, for example, only relatively recently — in 2019.

LEASEHOLD – ownership by lease

If you purchase property under these terms, you are granted ownership rights for a fixed period of up to 99 years (in rare cases, less). However, you do not own the land the property stands on — the land remains with its original owner.

This form of ownership gives you rights only to the unit itself (for example, an apartment), not the land beneath it.
Such property can be sold or rented, but renting it out requires written consent from the landowner.
Once the lease period ends, ownership of the unit reverts to the landowner.
However, the leaseholder may have the opportunity to renew the lease at the end of the term (though such practices haven’t yet become established), and continue living in the property.
Tenants typically have limited responsibilities for maintenance, as these usually fall on the property owner. Any upgrades, renovations, or even repairs require written approval from the landowner.
The price for leasehold property might be lower (emphasis on “might”). But when reselling, the remaining lease duration will definitely be a factor for the next buyer.

FREEHOLD – full ownership rights

If you purchase property under freehold terms, you gain full ownership of both the property and the land it stands on. You’re free to sell, rent, or live in the property as you wish.

This is absolute ownership — of the apartment and the land beneath it. The Land Department registers the buyer as the legal landowner and issues a title deed confirming full property ownership. Freehold rights are indefinite. For instance, after the owner’s passing, the property can be inherited by their heir.

Buying freehold property gives the owner complete control over the property and the land. Any alterations, reconstructions, or renovations can be carried out at the owner’s discretion, provided they comply with existing construction norms and regulations.

The owner and their heirs can also apply for a UAE residency visa based on such property ownership.

How crucial these ownership conditions are — is ultimately up to the buyer to decide.