Freehold vs Leasehold in the UAE: What Buyers Should Know

House To Own Real Estate Management LLC
Nov 19, 2025
1 min read

When buying property in the UAE, one of the most important decisions is choosing between freehold and leasehold ownership. Understanding the difference helps you invest with confidence and avoid future surprises.

Freehold ownership gives buyers complete ownership of the property and the land it sits on. This means you can sell, lease, or pass it on without restrictions. Many key investment areas in Dubai and Abu Dhabi such as Saadiyat Island, Yas Island, Al Reem, and Al Fahid Island offer freehold opportunities for both residents and foreign investors. Freehold properties are often preferred by long-term investors because they offer stronger capital appreciation and more control.

Leasehold ownership, on the other hand, gives you the right to use the property for a fixed period usually 30 to 99 years. The land remains under the ownership of the freeholder. Leasehold can be a more affordable entry point into prime locations, and it often attracts buyers looking for lower initial investment. However, renewing leases can involve additional costs, and selling leasehold units may take longer due to market preference for freehold.

So, which is better?

If you’re looking for maximum control, long-term flexibility, and higher ROI, freehold is the top choice. Leasehold can still be a good option for budget-conscious buyers who want access to established communities.

No matter what you choose, working with a trusted agency ensures transparency and smooth transactions.