Mortgage basics
What is the difference between leasehold and freehold property in the UAE?
Freehold ownership in the UAE gives you full title to both the property and the land it sits on, with no expiry. Leasehold gives long-term rights, commonly up to 99 years, to use and occupy the property, but the underlying land remains owned by the freeholder, which can affect mortgage terms and resale.
What each type actually means
Freehold areas, designated by each emirate, allow full property and land ownership, including for most non-UAE nationals. Leasehold arrangements are more common outside designated freehold zones or in certain older developments, granting a long lease (often up to 99 years) rather than outright ownership of the land.
Why it matters for your mortgage
- Most UAE banks only finance freehold properties in designated freehold zones
- Leasehold properties can face stricter LTV limits or may not be financeable at all, depending on the remaining lease term
- A shorter remaining lease term can reduce the maximum mortgage term a bank will offer
- Title deed wording differs, see what is a title deed for how ownership is recorded
Comparing the two
| Feature | Freehold | Leasehold |
|---|---|---|
| Land ownership | Yes | No, land owned by freeholder |
| Typical duration | Indefinite | Often up to 99 years |
| Mortgage financing | Widely available | Limited, depends on remaining term |
| Non-UAE national eligibility | Yes, in designated zones | Varies by emirate and development |
How lease term affects loan term
Banks generally won't offer a mortgage term that outlasts the remaining lease. If a leasehold property has 40 years remaining, for example, the maximum mortgage term a bank offers will typically sit within that window, even if you'd otherwise qualify for the standard 25-year maximum, which is one reason leasehold financing is more restrictive.
Checking before you buy
Always confirm the ownership type and remaining lease term (if leasehold) with the Dubai Land Department or relevant registry before applying for pre-approval, since it directly affects which banks will lend and at what LTV.
Common mistakes
- Assuming all UAE property is freehold; many areas remain leasehold-only or mixed
- Not checking the remaining lease term before making an offer
- Confusing 99-year leasehold with freehold when comparing listings
- Skipping direct verification with the registry and relying only on an agent's description
What to do next
Confirm ownership type with the registry, then get pre-approved so you know which banks and terms are realistically available for that specific property.
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Last reviewed 11 August 2026
