Should I buy Leasehold or Freehold Property?

It was only during the start of the early 2000s when foreigners were authorized to invest in properties on a leasehold followed by freehold basis.

The market has been booming with eager investors with many properties rising every year. Whether you are a buyer or an investor coming to Dubai for business endeavors, it is extremely important to thoroughly understand the terms and conditions that go along with Freehold and Leasehold Properties.

Many forgo this factor and only consider location, amenities and budget without realizing the true importance of property ownership.



In simple terms, leasehold grants the buyer rights to only the property for a maximum of 99 years which can be extended and renewed if both parties comply. Hence, the buyer has ownership of only the unit but not the land it sits on. Many choose the leasehold route because of its limited liability and no additional responsibilities in regards to maintenance and repair. But there could be underlying restrictions that would have to be approved by the freehold owner before the necessary action is carried out

Dubai Silicon Oasis is a prime location for leasehold properties that offers properties on a leasehold basis with studios for AED304K to apartments from AED470K


The buyer possesses full ownership of both the property and land with the ability to freely sell or lease as they please. Here, they are registered as land owner through Dubai Land Department where then they are eligible for the title deed. This ownership is under perpetuity meaning it is family inherited. The owner has full control over renovation but has to deal with the additional expenses such as maintenance under the developer’s guidelines. Additionally, freehold offers long term visa perks for them and their immediate family that encourage them to invest in future years to come. But freehold visas are very limited in specific places such as Downtown Dubai offering a studio from AED480k.

What to choose?

After going through the terms for both leasehold and freehold, it is still hard to make perplexed decisions. Everyone has their own opinion which is why it is strongly recommended to consider pros, cons and review your own financial goals. Know your perspective since both ownership differs with the amount of control allocated for the buyer.

Make the right decision to avoid future disappointment with Indus Real Estate.

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Image source: property search; James edition