Features of land ownership in the UAE

Real estate in the United Arab Emirates is regulated by special laws, especially with regard to land ownership. There are two main categories in Dubai: Leasehold et Freehold. Understanding these differences is critical for investors, especially as the city is experiencing rapid growth and change.

What is Leasehold and who is this property available to

Leasehold (rental property) is the right to lease land or real estate for a long-term period of up to 99 years. However, in this case, the actual ownership of the land or building remains with UAE citizens or land owners. Foreigners can only rent, without lifelong ownership.

It is important to understand that expats in Leasehold zones cannot acquire full ownership of land or housing — just enter into a long-term lease agreement.

What is Freehold and why is it attractive to foreign investors

Freehold — this is full ownership of real estate and a plot of land. For foreigners, this means the opportunity to:

• owning a home without a time limit,

• hereditary property transfers,

• resale, donation and rental without restrictions.

Freehold zones were originally limited to certain areas (e.g. Palm Jumeirah, Downtown, JVC, Business Bay), but now their geography is actively expanding.

How the Freehold Zone map is changing in 2025

Dubai's rapid development is making the market more and more open. An important example is townland Studio City — It previously belonged to the Leasehold Zone, but has recently been transferred to the Freehold category, becoming available for full ownership by foreigners.

Even more extensive changes:

• More than 100 sections along Sheikh Zayed Road received Freehold status.

• More than 300 sites in the area Al-Jaddaf — close to Dubai Creek, Downtown, and Business Bay — now they can also become the property of foreign investors.

This offers great opportunities:

• for individual buyers — purchase housing in central regions without restrictions;

• for investors — own commercial or residential real estate in promising locations with high growth potential.

What this means for the market and the future of investments

The transfer of large territories from Leasehold to Freehold is more than just a legal upgrade. This is a strategic signal to investors from around the world:

• Dubai enhances the open investment model;

• expands the participation of foreign capital;

• lowers entry barriers in key locations;

• and guarantees legal protection of property for non-residents.

Thus, real estate in the new Freehold zones may increase in value in the coming years, and projects in these areas will be in steady demand.

Conclusion

The opening of new Freehold zones is Dubai's next step towards full openness to investors. Real estate ownership is now possible in even more areas, including strategically important sites in the city center. If you're considering buying a home or commercial property, now is the perfect time to take advantage of this opportunity.