Leasehold in Dubai is the ownership structure people accept when they do not read the small print on an otherwise attractive listing.
Leasehold means you own the property but not the underlying land, for a fixed term (commonly 99 years, sometimes 50 or 30), after which ownership reverts unless the lease is renewed or renegotiated. Certain pockets of Dubai are structured this way, particularly in areas originally developed before freehold was opened to foreigners in 2002. It also shows up in some plots within otherwise freehold communities. The title deed looks similar. The legal position is materially different.
A client called me in 2024 excited about an AED 2.6M townhouse that came in about 12% below equivalent freehold stock in the same area. The reason for the discount was visible in one line of the title deed: 47 years remaining on the underlying lease. He was planning to hold for retirement. We walked.
Before you get excited about a listing priced below the local freehold comp, check whether it is freehold or leasehold, and if leasehold, how many years remain. A lease under 50 years is a very different asset from one at 99.
Related: Freehold, Usufruct, Title Deed, DLD.
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