Freehold vs leasehold in Dubai: what foreigners can actually own

Before 2002, foreigners could not own property in Dubai outright. That changed when Sheikh Mohammed bin Rashid Al Maktoum issued the Freehold Decree, which carved out designated areas where non-UAE nationals could buy and own real estate with full freehold rights. That single decree transformed Dubai into the global property market it is today.

Today, foreign buyers — whether resident in Dubai or based anywhere in the world — have two main ownership options: freehold ownership in designated zones, or leasehold rights elsewhere. Understanding the difference matters because it affects what you can do with the property, how long your rights last, and what happens when you sell or pass it on.

Freehold: full ownership, no time limit

Freehold ownership means you own the property and the land it sits on, in perpetuity, with no time limit. You can sell whenever you want, rent it out, mortgage it, modify it (within building regulations), and pass it on to your heirs. There is no annual ground rent payable to anyone. You are the registered owner with the DLD, and your name appears on the Title Deed.

Freehold ownership for foreigners is restricted to specific geographic zones called "designated areas" or "freehold areas". Inside these zones, any nationality can buy. Outside these zones, foreigners generally cannot buy freehold property — though leasehold options often exist.

The main freehold areas in Dubai

The list of freehold areas has expanded over time. As of 2026, the main freehold zones where foreigners can buy include:

• Dubai Marina
• Downtown Dubai (Burj Khalifa district)
• Palm Jumeirah
• Jumeirah Beach Residence (JBR)
• Business Bay
• Jumeirah Lake Towers (JLT)
• Dubai Hills Estate
• Arabian Ranches I, II, and III
• Emirates Hills
• The Meadows, Springs, Lakes
• Dubai South (formerly Dubai World Central)
• Mohammed Bin Rashid City (MBR City)
• Tilal Al Ghaf
• Al Furjan
• International City
• Discovery Gardens
• Damac Hills, Damac Lagoons
• Dubai Sports City
• Dubai Production City
• Town Square (Nshama)
• Dubai Creek Harbour
• The World Islands

Leasehold: long-term rights, but not ownership

Leasehold gives you the right to use a property for a fixed term — typically up to 99 years — without owning the underlying land. Under Dubai law, the maximum leasehold term for foreigners is 99 years, with renewable options in some cases.

During the leasehold term, you can usually treat the property much like a freehold: live in it, rent it out, sell your remaining leasehold rights, or pass them to heirs. The key difference is that at the end of the term, ownership reverts to the original freeholder (typically a master developer or government entity). In practice, 99-year leases extend well beyond a buyer's expected use, but the residual value declines as the term winds down.

Which gives more value

For most foreign buyers, freehold in a designated area is the better option whenever it is available. The price premium is typically modest, and the long-term resale value, financing options, and inheritance simplicity all favour freehold. Leasehold makes sense if you want a specific location outside a freehold zone, or if you have a clear time horizon that fits the lease term.

Inheritance rules — what happens to your property

Property inheritance in Dubai falls under UAE Federal Law unless you make a Will registered with the DIFC Wills Service Centre (or in Abu Dhabi, the ADJD Will). Without a registered Will, the default inheritance rules apply Sharia principles — which may not match what you want.

Both freehold and leasehold rights can be inherited, but freehold passes cleanly and indefinitely while leasehold passes only the remaining term of the lease.

The legal foundations

The legal framework for foreign property ownership in Dubai rests on a few key instruments:

• Decree No. 4 of 2002 — the original Sheikh Mohammed decree opening freehold to foreigners
• Law No. 7 of 2006 — codified property registration and DLD authority
• Law No. 13 of 2008 — formalised the interim property registry (Oqood) for off-plan
• Law No. 27 of 2007 — joint ownership of properties (covering apartments and common areas)
• Various subsequent decrees expanding the list of freehold designated areas

Special structures and edge cases

A few specific situations are worth being aware of:

• Joint ownership: foreigners can co-own property with other foreigners or with UAE nationals. The Title Deed lists all owners and their shares.
• Company ownership: a Dubai-licensed company can hold freehold property anywhere it is permitted, regardless of the shareholders' nationalities. This is sometimes used for portfolio purchases.
• GCC nationals: have broader ownership rights than other foreigners and can own freehold outside the designated zones.
• Government land: certain plots remain government-owned and are leased out under specific terms. Most major commercial towers in DIFC, for example, are on long-term land leases.