Insights · AXD Real Estate Dubai
Freehold vs Leasehold Dubai — DACH Difference
What is the difference between Freehold and Leasehold in Dubai?
Freehold means unrestricted full ownership of land and building, registrable in the Title Deed of the Dubai Land Department — without time limit, inheritable, mortgageable.
Leasehold is a long-term leasehold right (typically up to 99 years) to land owned by a UAE national or a Government Entity.
Since Decree 3/2006, foreigners may acquire full ownership in the designated Freehold zones.
Direct comparison
| Feature | Freehold | Leasehold |
|---|---|---|
| Term | Unlimited | Up to 99 years |
| Land ownership | Buyer | UAE national / Government |
| Inheritance | Freely inheritable | Remaining term inheritable |
| Sale | Freely transferable | With consent of landowner |
| Mortgage | Standard possible | Restricted |
| Golden Visa | Qualifies from 2 Mio. AED | Generally not qualified |
Where Freehold is permitted
The list of Freehold zones is maintained by the Dubai Land Department on the basis of Regulation 3/2006. Designated Areas include Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JVC, MBR City, Dubai Hills Estate, Emaar Beachfront, Dubai Creek Harbour and Dubai South.
Outside these zones, only Leasehold is available to non-UAE buyers.
What this means for DACH investors
AXD mandates are structured exclusively in Freehold zones — due to the unlimited holding period, clean succession and eligibility for the Golden Visa.
Leasehold is primarily an instrument for institutional users (hospitality, industry) — not for private DACH HNWI allocation.
The Title Deed is issued after DLD registration (4 % transfer fee) and is the sole proof of ownership.
In off-plan purchases, between SPA and Title Deed lies the Oqood registration as provisional DLD ownership protection prior to handover.
Sources
Regulation No. 3 of 2006 — Determining Areas for Ownership by Non-UAE Nationals
Dubai Law No. 7 of 2006 — Real Property Registration in the Emirate of Dubai
Dubai Land Department — public Freehold zone list
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