---
title: "Leasehold"
canonical: https://www.uaepropertyagents.com/glossary/leasehold
markdown: https://www.uaepropertyagents.com/md/glossary/leasehold.md
type: glossary-term
description: "Leasehold is the right to hold a property for a fixed term, up to 99 years in Dubai, after which it returns to the freeholder unless the lease is renewed."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# Leasehold

> Leasehold is the right to hold a property for a fixed term, up to 99 years in Dubai, after which it returns to the freeholder unless the lease is renewed.

Also known as: Long leasehold, 99-year lease.

## What Leasehold means for a buyer

A leasehold buyer owns the right to occupy and use a property for a set number of years, not the property itself. Dubai Law No. 7 of 2006 allows foreign nationals to hold leasehold rights of up to 99 years in designated areas, and such long leases are registered with the [Dubai Land Department](https://www.uaepropertyagents.com/glossary/dld) in much the same way as a sale. The registration fee is 4% of the value of the lease contract.

Most new off-plan homes sold to foreigners are [freehold](https://www.uaepropertyagents.com/glossary/freehold), so leasehold is the exception. You are most likely to meet it in a handful of older communities, in some projects on government-owned land, and in parts of the other emirates.

What to weigh:

- **Remaining term.** A lease is a wasting asset. Resale value and bank appetite fall as the term shortens, and some lenders will not lend on leasehold at all.
- **What happens at expiry.** Renewal is a matter for the lease and the freeholder, not an automatic right.
- **Restrictions.** Check whether you may sell, sublet or alter the property without the freeholder's consent.

Do not confuse leasehold with renting. An ordinary one-year tenancy registered in [Ejari](https://www.uaepropertyagents.com/glossary/ejari) is a different thing, covered under [long-term lease](https://www.uaepropertyagents.com/glossary/long-term-lease). Related rights you may see in Abu Dhabi are [usufruct](https://www.uaepropertyagents.com/glossary/usufruct) and [musataha](https://www.uaepropertyagents.com/glossary/musataha).

## Related terms

- [Freehold](https://www.uaepropertyagents.com/glossary/freehold): Freehold is outright ownership of a property with no time limit; foreign nationals can hold it only in areas each emirate has designated for foreign ownership.
- [Usufruct](https://www.uaepropertyagents.com/glossary/usufruct): Usufruct is the right to use, occupy and earn income from a property owned by someone else for a fixed term of up to 99 years.
- [Musataha](https://www.uaepropertyagents.com/glossary/musataha): Musataha is a long-term right to build on and use land that belongs to someone else, granted for up to 50 years and renewable.
- [Long-term lease](https://www.uaepropertyagents.com/glossary/long-term-lease): A long-term lease normally means a standard residential tenancy of a year, registered with the authorities; in law it can also mean a lease of 10 to 99 years.

## In depth

- [Can foreigners buy property in the UAE? Ownership rules emirate by emirate](https://www.uaepropertyagents.com/guides/can-foreigners-buy-property-in-the-uae)


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Source page: https://www.uaepropertyagents.com/glossary/leasehold. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.