Leasehold Property in Dubai (2025 Guide)

To make smart investment decisions in Dubai’s property market, understanding leasehold ownership is essential. In this 2025 guide, we explain everything you need to know about leasehold properties in Dubai: what they are, who can buy them, where they’re available, how much they cost, and whether you can convert them into freehold ownership.

Whether you’re an expat, a resident investor, or a first-time buyer looking for affordable options, leaseholds might be the right entry point into Dubai real estate. Let’s explore how it works.

What is Leasehold Property?

With a leasehold property, you do not buy the land or the building outright. Instead, you buy the right to use the property for a long, fixed period, typically up to 99 years. The land remains under the ownership of the freeholder, and you lease the right to occupy or use the unit.

This model is widespread in Dubai, especially in established areas. According to 2023 data, leasehold transactions made up 28% of the city’s total real estate, valued at around AED 73 billion.

Important note: The freeholder retains control over key aspects of the property. For example, subletting usually requires their permission.

Who Can Buy Leasehold Property in Dubai?

• UAE Nationals: Eligible to buy both leasehold and freehold properties across all areas of Dubai.
• Expatriates: Can purchase leasehold properties in a significantly larger number of locations than freehold.

Dubai began allowing foreign ownership of leasehold properties in 2001, followed by freehold ownership in 2002. These regulatory changes played a key role in attracting international real estate investment.

By Q1 2024, off-plan sales increased by 73%—a trend partially driven by the relative affordability of leasehold units.

Where Are Leasehold Properties Located?

While freehold zones have grown, leasehold areas remain attractive for affordable and long-term investment. Key leasehold communities include:

Legal Protection for Leasehold Buyers

The leasehold property market in Dubai is governed by strong legal frameworks enforced by:

• Dubai Land Department (DLD): Handles title registration and transfers.
• Real Estate Regulatory Agency (RERA): Ensures transparency and fairness.

Registration Rules:

• Over 10-year leases: Must be registered with the DLD.
• Under 10-year leases: Registered with Ejari (managed by RERA).

Dispute Resolution:

• Rental Dispute Settlement Centre (RDC) and Real Estate Violation System (RVS) are available to resolve legal issues.

Pros of Leasehold Ownership

• Lower purchase price than freehold
• No responsibility for major repairs (usually handled by the freeholder)
• Flexibility: Ideal for short- to medium-term living or investment
• Amenities included: Maintenance of common areas is often covered
• Less financial burden for structural upkeep

Risks and Limitations of Leasehold

• Modifications require approval from the freeholder
• The lease period is finite, usually maxing out at 99 years
• Ongoing service charges and ground rent can add up
• Depreciation risk: Properties may lose value as the lease term shortens

Step-by-Step: How to Buy a Leasehold Property

1. Property Search: Define your budget and location. A trusted real estate agent helps.
2. Negotiation: Discuss lease terms, price, and conditions with the freeholder.
3. Lease Agreement: Sign a clear, binding document.
4. DLD Registration: Required for leases over 10 years.
5. Payment: Pay the lease amount, registration fees (typically 4%), and agent charges.
6. Transfer of Rights: The DLD officially registers your leasehold ownership.

Leasehold Costs & Fees

Service Charges: Annual fees for building upkeep, ranging from $15 to $60 per sqm. These cover:

• Security
• Landscaping
• Shared amenities (pool, gym)
• Facility maintenance

Utility Bills: Include water, electricity, garbage, and sometimes separate chiller fees.

Can You Convert Leasehold to Freehold?

Yes, but only in specific zones.

In January 2025, the DLD opened up 128 plots on Sheikh Zayed Road and 329 plots in Al Jaddaf for conversion to freehold.

If you’re in one of these areas, consult a legal expert to begin the process.

Final Thoughts: Is Leasehold Right for You?

Leasehold ownership in Dubai is an excellent, low-barrier entry point for new buyers. With lower upfront costs and reduced maintenance responsibilities, it’s ideal for:

• Young professionals
• Expats
• Budget-conscious investors

But be sure to consider the long-term implications, including lease expiration and resale value.

Explore Leasehold Properties with Entralon

Looking for leasehold options tailored to your lifestyle and budget? At Entralon, we make it simple:

• Pre-verified listings in top leasehold zones
• Legal guidance from our local experts
• Transparent pricing, no hidden fees

Browse Leasehold Properties Now →