Leasehold ownership Dubai: term, rights and costs (2026)

Updated 10 November 2026.

How does leasehold differ from freehold?

Freehold has no fixed time limit under Article 4. Leasehold has a term, so the years remaining belong in your comparison beside the asking price.

Dubai Land Department (DLD) describes usufruct as use and benefit of someone else's property for up to 99 years. Ask which right your offer actually grants. For a development proposal, read the musataha agreement checklist.

A free-zone address raises a separate question about business licensing. The free zone and freehold comparison explains what to check if a company will buy.

Sources · Checked 10 November 2026 · Dubai Supreme Legislation Committee, Law No. 7 of 2006, Articles 4 and 24 · DLD, usufruct registration.

Are you buying a fresh 99-year term?

Read the start and expiry dates. “99-year leasehold” in an advertisement doesn't tell you how much time you'd have left.

Hypothetical example: a lease starts on 1 January 2007 and ends on 1 January 2106. A purchase on 1 January 2027 leaves 79 years: 2106 − 2027. These invented dates show the calculation; check the dates in your lease.

Ask the seller to show whether your transaction transfers the existing term or grants a new one. Put the answer and supporting clause beside the sale and purchase agreement.

Watch out: the statutory maximum of 99 years isn't a promise that every lease lasts that long or renews automatically.

Which documents should you check before signing?

1. Request the current property record and complete lease. Include amendments, plans and any renewal or transfer consent. Match the unit and land references throughout.
2. Open DLD's Verify Title Deed service if a deed is supplied. It asks for the deed number, year and property type. The owner-and-property option also asks for the owner's name.
3. Ask DLD or a registration trustee about the intended transaction. Confirm the right, buyer eligibility and registration route for this property. DLD is the registrar for the long-term leasehold contracts covered by Article 4.
4. Have your adviser read the expiry and exit clauses. Ask what happens to the home, improvements and unpaid obligations at the end.

Keep the seller's identity documents private. If the deed result or property reference doesn't match, ask the seller and DLD to resolve the difference before proceeding.

Sources · Checked 10 November 2026 · DLD, Verify Title Deed · Law No. 7 of 2006, Article 6. The document-review steps are our checklist.

What are the registration fees?

DLD's service card lists 2% of rental value for the owner and 2% for the lessee for a long-term lease. It also lists certificate, map and service-partner charges.

Ask the trustee what “rental value” means for your agreement and who pays each charge. Don't substitute the sale price or one year's rent yourself. Today's total for your transaction remains unknown until you have that assessment.

The card directs applicants to registration trustee centres. Its individual-document list includes a developer e-NOC in freehold areas, seller identification and a legal power of attorney where represented. Confirm the list for your case before attending. DLD support is 8004488.

Keep annual bills separate. Use the service-charge guide to request the building's current charges and area basis.

Source · DLD, Usufruct/Musataha registration service, documents and fees · Checked 10 November 2026. No transaction-specific fee quote was obtained.

What should you ask about renewal, resale and financing?

Send your adviser these questions with the proposed lease:

• Renewal: who can approve an extension, by when, and how is its price set?
• Transfer: whose consent is needed, and what fees or restrictions apply?
• Financing: will your lender accept this right and its remaining term? Ask for written terms for this property.
• Expiry: what must you hand back, and does the agreement provide for improvements or compensation?

Your lease must answer these questions. Ask the landowner about renewal costs and your lender about financing; neither is confirmed here.

Frequently asked questions

Can a foreign buyer hold leasehold property in Dubai?

Article 4 allows non-UAE nationals leasehold or usufruct rights in areas determined by the Ruler. Ask DLD to confirm the exact property and proposed buyer before you pay.

Does a leasehold purchase turn into freehold later?

Don't price an assumed conversion into your purchase. Ask for the written basis, required approvals and registration process for any conversion promised by the seller.

Does an Ejari certificate answer these ownership questions?

For an ordinary residential tenancy, use the Ejari renewal guide. For a proposed long-term property right, ask DLD which record confirms that right and its expiry. Take both the agreement and property reference to the enquiry.

Before making an offer, ask for the complete lease and mark its expiry, renewal, transfer and payment clauses for review.