Dubai’s real estate laws draw a clear distinction between unrestricted freehold ownership and limited-term rights such as usufruct and long-term leasehold, even though all appear on Dubai Land Department (DLD) title deeds. This guide translates leasehold vs. freehold in Dubai into practical terms, empowering you to interpret your deed and understand the implications of a 99‑year term. EGSH, a licensed government service centre, expertly navigates these procedures with the relevant authorities on behalf of clients.
The article draws on Dubai Real Property Registration Law No. 7 of 2006, the UAE Civil Transactions Law (Civil Code), and official DLD and UAE Government guidance as its backbone. You will see how freehold and 99‑year rights are registered, what a freehold title deed Dubai looks like compared with a leasehold/usufruct title deed, and what the law provides when the contractual period ends.
Why Title Deed Types Matter in Dubai
Dubai law distinguishes several real property rights: full freehold ownership, usufruct (a long‑term right to use and benefit from property), and leasehold rights of up to 99 years in designated areas. According to the UAE Government’s portal, foreigners buying property in Dubai freehold areas may hold either full freehold, usufruct, or long‑term leasehold rights, depending on the project and the approvals obtained by the developer.
Under Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai, all these rights are real rights recorded in the DLD Property Register—not just private contracts between the parties. The title deed shows the specific type of right and, for leasehold/usufruct, the duration. This determines who is legally recognised as holding the right and what happens at expiry, transfer, or termination. Misunderstanding this can lead to incorrect assumptions about 99‑year property ownership in Dubai, resale options, and succession.
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Legal Framework: How Dubai Records Property Rights
Dubai Real Property Registration Law No. 7 of 2006 sets out who can own what and how. Article (4) states that UAE and GCC nationals, companies fully owned by them, and public joint stock companies may own real property in Dubai. It also provides that, with the Ruler’s approval, non‑UAE nationals may, in designated areas, obtain either full freehold ownership without time limit or usufruct/leasehold rights for a period not exceeding ninety‑nine (99) years.
Article (6) designates the Dubai Land Department as the sole authority that may register these real rights and the long‑term leasehold contracts referred to in Article (4). Article (7) requires DLD to maintain an official Property Register that records all real property rights and any amendments. That register has absolute evidentiary value against all parties except in cases of fraud or forgery, which means that for legal purposes, the register is the definitive statement of who holds which right.
Article (9) goes further and provides that any transaction creating, transferring, amending, or extinguishing a real property right is not valid against third parties unless it is recorded in the Property Register. In practice, this means that a sale, transfer of a 99‑year leasehold Dubai right, or termination of a usufruct must be formally registered to have full legal effect. Chapter Ten of the same law obliges DLD to issue title deeds based on the information contained in the Property Register and confirms that these deeds have full evidentiary value to prove the registered rights.
The DLD now issues these documents as electronic title deeds in Dubai through its smart services. Whether the right is freehold, usufruct or long‑term leasehold, the Dubai Land Department title deed is therefore the outward evidence of what is recorded in the Property Register and of the exact legal position.
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What Is a Freehold Title Deed in Dubai?
Freehold ownership is an unlimited, time‑indefinite right over real property. A freehold owner may use, occupy, lease, mortgage, or sell the property, subject to planning, building, and other regulations. Under Article (4) of Law No. (7) of 2006, UAE and GCC nationals and qualifying companies can generally own freehold throughout the Emirate. Non‑UAE nationals may hold freehold only in areas specifically designated and approved by the Ruler.
When a freehold right is registered, DLD records the owner and the nature of the right in the Property Register. It then issues an Electronic Title Deed as formal proof. DLD’s e‑services, such as title‑deed modification and property gift registration, list the “Electronic Title Deed” among the outputs. This reflects new or amended freehold ownership. The deed states the type of real right, plot or unit details, and the registered owner’s name.
Under Law No. (27) of 2007 regulating jointly owned real property in Dubai, a person recorded as the freehold owner of a unit is an “Owner” for the purposes of building management and the owners’ association. This allows the freehold holder to participate in service‑charge decisions, community rules and other matters of joint ownership. In a leasehold vs freehold title deed comparison in Dubai, the freehold deed is the document that evidences the most extensive bundle of rights, with no time limit.
What Is a 99‑Year Leasehold or Usufruct Title Deed?
Long‑term rights, such as usufruct and leasehold rights of up to 99 years, are also formally recognised and registered in Dubai, although they are time‑limited. For many expatriate buyers, these rights are the practical alternative to freehold in specific projects, and they appear on their own DLD title deed in broadly the same format as freehold but with an explicit term.
Nature of Usufruct and Long‑Term Lease Rights
Under the UAE Civil Transactions Law, a usufruct is a right in rem that allows the usufructuary to use and exploit real estate owned by another for the duration of the usufruct. That duration is set out in the establishing instrument, and under Article 1344, the usufruct ends upon the expiration of this period, along with other listed causes of termination. In Dubai, Article (4) of Law No. (7) of 2006 allows non‑UAE nationals to hold such Dubai usufruct rights for 99 years at most, in designated freehold areas.
This must be distinguished from an ordinary lease, which is typically a shorter-term, purely contractual arrangement. Lease provisions in the Civil Code also govern use, return of the property, and rent. In practice, DLD describes these registered 99‑year or similar rights as a long-term leasehold structure in Dubai for 99 years. They remain real rights in rem—not simple occupancy contracts. The Civil Code also regulates musataha, a separate right to build or plant on another’s land. Its term may not exceed 50 years under Article 1356, which is shorter than the 99‑year ceiling for usufruct.
Registration and Title Deed for 99‑Year Rights
From a registration perspective, usufruct and long‑term lease rights are treated similarly to freehold. Article (6) of Law No. (7) of 2006 requires DLD to register these rights in the same Property Register. DLD’s dedicated usufruct/musataha right registration service describes these as long‑term leases, and confirms that once registered, DLD issues a “Certificate of Title / Title deed and maps” for the usufruct or long‑term lease.
Other DLD services, such as property gift registration, list “Usufruct Title Deed” among the documents produced. There is a specific form of title deed for these time‑limited rights. Under Article (9) of Law No. (7) of 2006, such rights are not effective against third parties unless registered. Relying on an unregistered contract alone is inconsistent with Dubai's long‑term lease registration requirements. For jointly owned buildings, Law No. (27) of 2007 includes holders of long‑term leasehold or usufruct rights within the definition of “Owner.” They can participate in the owners’ association during the term.
Rights and Obligations During the 99‑Year Term
During the agreed term, the usufructuary or long‑term leaseholder may use and benefit from the property within the limits set forth in the establishing deed and applicable law. In economic terms, this often resembles ownership: the right can frequently be transferred, mortgaged or sublet, provided the underlying contract and relevant law permit it, and DLD registers any such dealings. Despite this, the underlying freehold remains registered in the name of the original owner, and the usufructuary acquires only a time‑limited right in rem.
Civil Code provisions require the usufructuary or lessee to use the property prudently and maintain it, and to return it upon termination in the condition in which it was received, save for normal wear and tear and loss not attributable to them. Article 1341 states that once the usufruct ends, if the usufructuary delays returning the property without justification and it deteriorates or is lost, they may be liable for its value. These rules form part of the rights and obligations upon the end of usufruct in the UAE and underpin the reversion of the property to the underlying owner.
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What Happens When the 99‑Year Term Expires?
A central concern for many buyers is what happens when a 99-year leasehold arrangement in Dubai reaches its contractual end. Legally, expiry is primarily governed by the Civil Code, with the provisions reflected administratively through DLD procedures.
Automatic End of the Usufruct / Leasehold Right
Article 1344 of the UAE Civil Code provides that a usufruct right ends upon expiry of the period specified in the deed creating it, or upon the occurrence of other grounds such as loss of the property, renunciation, or court-ordered termination. The right is therefore time-limited by its terms, and, in principle, no further act by the parties is required for the usufruct to cease at the end of its agreed duration.
While a usufruct may be granted for a long term—up to 99 years under the Civil Code—it is legally distinct from a long-term leasehold right, and each is governed by its own rules on creation, use, and termination.
DLD’s usufruct termination service operationalises this legal rule. It describes its purpose as terminating the usufruct term over a property and returning the property to its actual owner. Upon termination, DLD issues a new Certificate of Title/Title deed and an updated map that no longer shows the usufructuary’s right. In line with Law No. (7) of 2006, this change is recorded in the Property Register, and because the register has absolute evidentiary value, third parties must treat the recorded freehold owner as holding full rights again.
Reversion to the Underlying Owner and Practical Scenarios
Once the usufruct or leasehold term has expired and DLD has registered the termination, the underlying owner (for example, the landowner or original developer) regains unencumbered rights as shown in the Property Register and on the updated title deed. The Dubai Land Department’s description of termination makes clear that the property is returned to its actual owner, and any existing usufruct title deed ceases to have effect. Under Civil Code lease rules, if a lessee or former usufructuary remains in possession after expiry and the owner accepts this, the lease may be deemed renewed under similar terms; if not, the occupier must pay rent equivalent to that of a similar property for any unauthorised continued use.
Any extension beyond the original term, therefore, requires a fresh agreement between the parties, and to bind third parties, it must be registered with DLD in accordance with Article (9) of Law No. (7) of 2006. Without such registration, an agreed renewal remains vulnerable and may not be recognised against subsequent purchasers or creditors. From a buyer’s perspective, the key question is whether a 99-year leasehold property reverts to the owner in Dubai, which is determined by the combination of the Civil Code's expiry rules and DLD’s termination procedures.
Table: Legal Position Before and After 99‑Year Expiry
| Stage | Registered Right at DLD | Name on Usufruct / Leasehold Title | Right to Occupy / Use | Obligation to Return Property |
|---|---|---|---|---|
| Before expiry (during term) | Usufruct / long‑term lease + underlying freehold | Usufructuary / leaseholder | Holder may use and benefit within legal limits | Must maintain property and prepare to return at term end |
| After expiry and termination | Freehold only (usufruct/lease removed from register) | Freehold owner only | Former holder has no right unless new contract | Must vacate; liable for unauthorised occupation or damage if they delay |
Freehold vs 99‑Year Leasehold: Key Differences for Buyers
The core difference between usufruct and freehold Dubai structures lies in duration and residual control, not in the fact of DLD registration. Both are recorded in the same Property Register and are evidenced by electronic title deeds of strong evidentiary value.
Comparing Duration, Control, and Registration
For freehold, the Property Register records the right as full ownership with no time limit, and DLD issues an electronic title deed showing the owner as holding that right indefinitely. The owner controls the property, subject to applicable laws, and there is no automatic expiry or reversion based solely on time.
For a 99‑year leasehold or usufruct, the register records a separate real right in favour of the usufructuary for a defined period that cannot, under Article (4) of Law No. (7) of 2006, exceeding 99 years for non‑UAE nationals in designated areas. DLD issues a usufruct or leasehold title deed in Dubai, indicating the nature and duration of the right. When comparing leasehold vs freehold Dubai options, buyers should therefore focus on how long the registered right lasts and what happens at the end of that term, rather than assuming all title deeds confer the same category of ownership.
Impact on Resale, Succession and Joint Property Participation
Because both freehold and 99‑year rights are registered real rights, each can, in principle, be transferred, mortgaged, or otherwise dealt with, provided the underlying contract and Dubai law permit it, and the transaction is registered in the DLD Property Register under Article (9). The closer a 99‑year right is to its expiry date, the shorter the remaining term available to any buyer or lender, so parties often carefully review the remaining term as part of their due diligence.
Law No. (27) of 2007 provides that holders of long‑term leasehold or usufruct rights are “Owners” for jointly owned real property during their term, meaning they can participate in owners’ association decisions much like freehold owners. Succession and inheritance of such rights, however, must be analysed in light of their time‑limited nature and applicable inheritance rules. For these structuring questions, including the difference between usufruct and freehold Dubai in a family or investment context, individuals should seek specific legal advice rather than relying on general information.
Comparison Table: Freehold vs 99‑Year Usufruct / Leasehold
| Aspect | Freehold Ownership | 99‑Year Usufruct / Leasehold |
|---|---|---|
| Duration | Unlimited | Fixed term, maximum 99 years for non‑UAE nationals |
| Underlying owner in DLD Register | Same person as freehold holder | Freehold owner plus separate registered usufructuary |
| What is registered | Full ownership right | Real right in rem to use/benefit, plus underlying freehold |
| At term end | No automatic change | Usufruct/lease ends; DLD terminates it and updates freehold |
| Role in owners’ association | “Owner” under Law No. (27) of 2007 | Also treated as “Owner” during the validity of the right |
Questions to Ask Before Buying a 99‑Year Right in Dubai
Anyone considering 99‑year property ownership in Dubai should treat the DLD records and the underlying contract equally critically in their decision. A clear understanding at the outset reduces the risk of misunderstanding what happens decades later at expiry or termination.
Before committing, it is prudent to clarify at least the following points and, where necessary, obtain professional advice:
- What type of right is stated or expected on the DLD title deed: freehold, usufruct, or long‑term lease, and how does this align with the sales and purchase agreement?
- What is the exact duration of the right and the expiry date that will be or is already recorded in the DLD Property Register?
- Who is the underlying freehold owner according to DLD, and how is the relationship between the freehold owner and the usufructuary or leaseholder documented?
- Are there existing registrations, such as a mortgage, sub‑lease, or musataha right that could affect the practical use or transferability of the right?
- What do the contract and project documentation say about possible renewal or extension, and how would any renewal be registered with DLD so that it is effective against third parties?
- If you are unsure how to check the type of property title deed in Dubai, have you obtained an official DLD extract or consulted a licensed government services centre, such as EGSH, to review the documentation?
FAQ
What happens when a 99-year lease expires in Dubai?
When the 99‑year term stated in the usufruct or long‑term lease deed ends, the right terminates by operation of Article 1344 of the Civil Code. The Dubai Land Department then processes termination, removes the usufruct/leasehold from the Property Register, and issues an updated title deed showing only the freehold owner. From that point, the former usufructuary has no registered right to occupy or use the property, unless a new agreement has been concluded and registered.
Does a 99-year leasehold property revert to the owner in Dubai?
Yes. Under the Civil Code and DLD’s usufruct termination procedure, once the agreed term ends and termination is registered, the property is “returned to its actual owner”. The updated title deed and map issued by DLD record only the freehold owner’s rights, and any continued occupation by the former leaseholder would require the owner’s consent and usually a new contract, or it may expose the occupier to rent and other liabilities.
Is a 99-year leasehold the same as ownership in Dubai?
A 99‑year leasehold or usufruct is a strong, registrable real right, but it is not identical to unlimited freehold ownership. It gives the holder extensive powers to use and benefit from the property during the agreed term, yet the underlying freehold remains with another person, and the right ends automatically at expiry unless renewed and re‑registered. In contrast, freehold has no time limit and does not revert by mere passage of time.
Can foreigners get freehold property in Dubai?
Non‑UAE nationals may obtain freehold property in Dubai only in areas designated for foreign ownership and approved by the Ruler, as provided in Article (4) of Law No. (7) of 2006 and confirmed by the UAE Government portal. Outside these designated zones, foreigners may instead hold registered usufruct or leasehold rights of up to 99 years where permitted. In all cases, the nature of the right must appear on the DLD title deed for it to be fully effective.
How does DLD register leasehold and usufruct rights?
DLD registers leasehold and usufruct rights in the same Property Register used for freehold, based on the application and supporting documents submitted by the parties. For long‑term rights, DLD’s services describe these as long‑term leases and, once registration is complete, issue a Certificate of Title / Title deed and maps proving the registered right and its duration. Any subsequent transfer, amendment, or termination of the right must also be lodged and recorded with DLD to be valid against third parties.
What is a usufruct title deed in Dubai?
A usufruct title deed in Dubai is an electronic title issued by DLD that records a registered usufruct or long‑term lease right, including details of the property, the usufructuary, and the term of the right. It is distinct from the freehold deed and evidences a time‑limited right in rem to use and benefit from real estate owned by someone else. According to Law No. (7) of 2006, this deed has full evidentiary value in proving the registered usufruct until it is terminated or expires.
What is the difference between a freehold title deed and a usufruct title deed in Dubai?
A freehold title deed records an unlimited ownership right, with the holder shown as the sole owner in the Property Register and no expiry date linked to the right itself. A usufruct title deed records a separate, time‑limited right in favour of a usufructuary, alongside the underlying freehold owner, and clearly states the start and end dates of that right. When the term ends and termination is processed, the usufruct deed’s effect ceases, and the freehold deed alone reflects full ownership.
Who is considered the owner under the Dubai Joint Property Law?
Under Law No. (27) of 2007 on jointly owned real property, the term “Owner” includes not only freehold owners but also persons registered as holding long‑term leasehold or usufruct rights for a specified period. This means that a usufructuary under a registered 99‑year right is treated as an owner for purposes such as participation in the owners’ association and payment of service charges during the term. Once the registered right ends and is removed from the DLD register, that status ceases, and only the freehold holder remains the “Owner” in law.
Explained by
Muneer Juma Al Balushi
Real Estate Registration Trustee Consultant
Muneer Juma Al Balushi has six years of experience in the real estate registration system of the Dubai Land Department. He specialises in accurate, secure, and legally compliant property registration.
This article is intended to provide general information based on official UAE sources, and does not constitute personalised legal advice. Before acting, applicants should verify the current rules and fees directly with the relevant authority or an authorised service centre.
