Dubai 99-Year Leasehold: A Secure Option for Investors
- June 5, 2025
Complete Guide to 99-Year Leasehold Property in Dubai
Dubai’s real estate sector offers an array of opportunities for both regional and international investors. Among the various ownership structures available, the 99-year leasehold model stands out as a compelling alternative to full freehold ownership, especially in well-established, centrally located communities.
Whether you are a first-time buyer, an expatriate seeking a secure long-term residence, or a seasoned investor diversifying your portfolio, understanding what a 99-year lease in Dubai entails is essential. In this article, Homeland Realty Real Estate provides a clear, comprehensive, and professionally curated guide to this long-term lease model, addressing key legal considerations, ownership rights, and its investment potential in Dubai’s dynamic property landscape.
What Is a 99-Year Lease in Dubai?
A 99-year leasehold is a long-term real estate agreement that grants the leaseholder the right to occupy and use a property for 99 years, without owning the land on which it stands. The land typically remains under the ownership of the original developer or a government entity.
Leaseholders pay a one-time purchase price, not recurring rent, and are granted substantial control over the property. This includes the right to reside, rent it out, sell the lease, or even renovate—subject to applicable permissions.
Legal Rights of a 99-Year Leaseholder in Dubai
Under Dubai real estate regulations, leasehold property owners enjoy several legal protections and entitlements. These include:
- The right to use and occupy the property exclusively for 99 years
- The ability to lease, sublet, or assign the leasehold interest
- The right to sell or transfer the property during the lease period
- Permission to undertake modifications or renovations (subject to local authority approvals)
- Issuance of a title deed from the Dubai Land Department (DLD), specifying the leasehold status
Importantly, these rights are transferable to heirs in the event of the leaseholder’s passing, making this model a viable estate planning asset as well.
Can Foreign Investors Purchase Leasehold Properties in Dubai?
Yes, foreign nationals are permitted to purchase leasehold properties in specific areas designated by the Dubai government. These areas are part of Dubai’s broader initiative to attract foreign capital and expand foreign ownership rights within controlled zones.
Homeland Realty Real Estate can help you identify properties located in approved leasehold zones, ensuring full legal compliance and a smooth transaction process
Key Locations in Dubai Offering 99-Year Leasehold Properties
While freehold ownership is available in many newly developed areas, several of Dubai’s central and mature neighborhoods operate under leasehold structures. These include:
- Jumeirah – Known for its proximity to the coastline and villa-style living
- Oud Metha – A family-friendly district with easy access to schools and healthcare
- Al Safa – A serene residential area near Sheikh Zayed Road
- Al Manara and Al Mankhool – Ideal for long-term urban living with excellent infrastructure
These areas are often well-connected and highly desirable for residents seeking established communities.
Read more: Top Areas for Rental Yield in Dubai: Where to Invest
Pros and Cons of the 99-Year Leasehold Structure
Benefits:
- Lower purchase cost compared to freehold properties
- Access to central, high-demand neighborhoods
- Secure, long-term occupancy rights
- Properties are fully sellable and transferable
- Eligible for UAE residency, subject to investment value thresholds
Considerations:
- No land ownership, only building rights
- Uncertainty around lease renewal terms after expiry
- Limitations on structural changes or major renovations
- Market perception of leasehold can impact resale value over time
Can the 99-Year Lease Be Renewed?
Generally, yes—a 99-year lease can be renewed, but this is not automatic.
Renewal is contingent upon mutual agreement between the leaseholder and the landowner, and terms may vary based on prevailing laws and market values at the time of renewal. In most cases, especially in established zones, lease renewals are common practice and negotiated favorably.
What Happens When the Lease Expires?
If no renewal is agreed upon at the end of the 99-year term, the property reverts to the landowner. The leaseholder forfeits rights to occupy or manage the property.
However, Dubai’s real estate sector is still relatively young, and few properties are anywhere near the end of their lease term. It’s expected that future legislation will further define and regulate renewal processes as the market matures.
Read more: Short-Term vs. Long-Term Rental in Dubai: Which is Right?
How Is Leasehold Property Registered in Dubai?
All leasehold transactions must be registered with the Dubai Land Department (DLD). Upon completion of the transaction, the leaseholder receives an official title deed, clearly specifying the lease duration and legal rights.
This legal registration ensures full transparency and protects the interests of both the leaseholder and the landowner.
Is It Safe to Invest in Leasehold Property in Dubai?
Yes—when conducted correctly and through reputable channels, investing in leasehold property in Dubai is considered safe and legally sound.
Dubai's regulatory framework for leasehold ownership is robust, and registration with the DLD guarantees enforceability. That said, working with an experienced and licensed brokerage, such as Homeland Realty Real Estate, is key to avoiding contractual ambiguities or legal oversights.
Final Thoughts: Is Leasehold Ownership Right for You?
The 99-year leasehold model offers a practical, legally secure, and financially accessible path into Dubai’s real estate market. It’s particularly appealing to international investors and residents who seek long-term occupancy in established, high-demand areas, without the premium costs of land ownership.
As always, due diligence and professional guidance are essential. At Homeland Realty Real Estate, our team ensures your investment journey is informed, transparent, and aligned with your long-term goals.
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Frequently Asked Questions
Can I sell a 99-year lease property in Dubai?
Yes. Leasehold properties can be sold at any time, and the buyer will inherit the remaining lease period.
Is a 99-year lease the same as owning the property?
Not entirely. You own the building or unit, but not the land beneath it.
Will I receive a title deed?
Yes. The Dubai Land Department issues a leasehold title deed, with all lease terms clearly stated.
Does leasehold property qualify for UAE residency?
Yes, if the value of the property meets the required threshold (currently AED 750,000 or more), you may be eligible for a residence visa.
Are lease terms always 99 years?
Not necessarily. While 99 years is the standard, shorter lease terms such as 30 or 50 years may also be offered by developers.
Read more:
Dubai Rent Increase Rules 2025 | Tenant & Landlord Guide
Dubai Land Services (ِDLD): A Guide for Property Buyers and Renters