Real Estate Investment

Dubai Real Estate

Freehold vs Leasehold Property in Dubai: What Buyers Need to Know

May 24, 2025
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Dubai Real Estate

Buying property in Dubai is more accessible than ever — but before you sign, you’ll come across two terms that carry huge implications for your rights as a property owner:

  • Freehold
  • Leasehold

Whether you’re an expat investing long-term or a resident buying a family home, understanding the difference between freehold and leasehold will help you make a smarter, legally sound decision.

What is Freehold Property?

In a freehold property, the buyer owns:

  • The property

  • The land it stands on

  • Full ownership rights for life (and can pass it on as inheritance)

This is the most complete form of ownership, and it’s what most international investors and end-users prefer when they buy property in Dubai.

Key Benefits of Freehold Ownership:

  • You can sell, lease, or live in the property with no limitations

  • Property can be passed to heirs

  • Ownership is registered in your name at Dubai Land Department (DLD)

  • You can modify or renovate (with approvals)

Examples of freehold zones: Arjan, Downtown Dubai, Business Bay, JVC, Dubai Marina

What is Leasehold Property?

In a leasehold arrangement, you’re essentially leasing the property for a fixed period — usually 30 to 99 years — from the landowner or master developer.

You do not own the land, and your rights are governed by the lease agreement.

Limitations of Leasehold:

  • You can’t make structural changes without consent

  • Lease terms must be renewed after expiry

  • Developer/landowner may set conditions on resale or subletting

  • Resale value may decline as lease term shortens

Examples of leasehold zones: Green Community, Discovery Gardens, Dubai Silicon Oasis (some projects)

Freehold vs Leasehold: Key Differences Table

Feature Freehold Leasehold
Ownership Full Long-term lease
Land Rights Yes No
Resale Flexibility High Limited
Modifications Allowed Yes (with approval) Restricted
Inheritance Rights Yes No (unless defined)
Popular Among Foreign investors, families Budget-conscious buyers, short-term expats

Which Should You Choose?

Choose Freehold If You:
  • Want full control and long-term ownership

  • Are buying as an investment or family residence

  • Prefer high resale and rental potential

  • Plan to apply for UAE residency or Golden Visa


Choose Leasehold If You:
  • Want a lower entry price

  • Plan to stay short-term

  • Are okay with developer restrictions

  • Don’t need to pass property to heirs



Price Comparison Snapshot (2025)

Area Type Avg. 1 BHK Price (AED)
Freehold (Arjan, JVC) 600K–850K
Leasehold (Older Areas) 450K–650K

While leasehold units are cheaper, the long-term value of freehold often far outweighs the savings.

Pearlshire Offers 100% Freehold Projects in Prime Zones

At Pearlshire, all our developments —  including Bond Enclave in Arjan — are freehold, giving buyers:

  • Total legal ownership

  • Full capital control

  • Access to residency pathways (Golden Visa eligibility)

Whether you're a first-time buyer or seasoned investor, buying freehold property in Dubai ensures peace of mind and lasting value.

👉 Explore Freehold Projects

Need Help Navigating Dubai’s Property Laws?

Our legal and sales team is here to guide you through every step of buying the right home in the right zone.

👉 Talk to Pearlshire

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