Buying Property in the UAE
Freehold vs Leasehold in Abu Dhabi and the UAE: What Foreign Buyers Actually Own
What foreign buyers own in Abu Dhabi since the 2019 law, the four forms of title, older 99-year deeds, and how to check a title before you pay.
Short answer. Freehold means you own the property and its land with no end date. Leasehold means you hold the right to use a property for a fixed term, up to 99 years, while someone else owns the land. Since April 2019, foreign buyers in Abu Dhabi’s investment zones can buy freehold. Today “leasehold” mostly means older titles bought before 2019, some arrangements on Al Reem Island, and leasehold properties in Dubai.
Freehold and leasehold at a glance
| Freehold | Leasehold, musataha or usufruct | |
|---|---|---|
| What you own | The property and the land | A right to use the property; the land stays with its owner |
| How long | No end date | Fixed term: up to 99 years (usufruct, long lease) or 50 years, renewable once (musataha) |
| Selling and mortgaging | Yes | Yes, for rights granted for more than 10 years, under the 2019 amendment |
| Alterations | Subject to community rules | Musataha allows building and alteration; usufruct does not |
| At the end of the term | Nothing ends | The right ends unless renewed by agreement |
| Where foreigners can buy it in Abu Dhabi | The 50 investment zones | Within the investment zones |
What foreigners can own in Abu Dhabi since 2019
Abu Dhabi’s property ownership law is Law No. 19 of 2005. On 16 April 2019, Law No. 13 of 2019 amended it so that foreign individuals, and companies owned by them, can own freehold land and property inside the emirate’s investment zones, and sell or mortgage it (Al Tamimi & Company).
Before that change, foreign buyers were limited to time-bound rights: 99-year leases, 50-year renewable musatahas, 99-year usufructs, or long leases of 25 years or more (CMS). That is why older Abu Dhabi title deeds can still show one of these forms.
The zones keep growing. The Abu Dhabi Real Estate Centre (ADREC) approved eight new investment zones in the first half of 2026, bringing the total to 50. Investment in the zones reached AED 75 billion in that half-year, up 181% on a year earlier (ADREC, H1 2026 release).
Source: ADREC registered transaction data; XIS Real Estate analysis.
The four forms of title you may see in Abu Dhabi
| Form | Term | What it lets you do |
|---|---|---|
| Freehold | No end date | Own the unit and its land; sell, lease, mortgage, leave to heirs |
| Musataha | Up to 50 years, renewable once | Use, build on or alter the property |
| Usufruct | Up to 99 years | Use the property and earn from it, without structural changes |
| Long lease | 25 to 99 years, as agreed | Occupy and use the property on the lease’s terms |
Terms from the UAE government portal and CMS. Under the 2019 amendment, a musataha or usufruct granted for more than 10 years can be sold or mortgaged without the landowner’s consent, unless the contract says otherwise (Al Tamimi).
Where leasehold still matters for an Abu Dhabi buyer
- Older titles in the resale market. A home first sold to a foreign buyer before April 2019 may still carry a 99-year deed, a musataha or a usufruct. The 2019 law allows registered holders of these rights in the investment zones to apply to convert them to freehold, under procedures set by the authorities (Al Tamimi). Before you buy, check which title the seller holds and whether it can be converted.
- Al Reem Island. Since 1 January 2025, Al Reem properties are registered with Abu Dhabi Global Market (ADGM) under its Real Property Regulations 2024, not with ADREC’s DARI platform (Al Tamimi). Ownership is still freehold. Leases and other interests follow ADGM’s rules. Ask which register your unit sits on.
- Dubai and other emirates. Dubai allows foreigners freehold, usufruct or leasehold of up to 99 years in designated areas (UAE government portal). If you compare an Abu Dhabi home with a Dubai one, compare the titles as well as the prices.
Which areas of Abu Dhabi can foreigners buy in?
The nine original investment areas are Yas Island, Saadiyat Island, Al Reem Island, Al Maryah Island, Lulu Island, Al Raha Beach, Sayh Al Sedairah, Al Reef and Masdar City (UAE government portal). Newer zones include Hudayriyat Island. With 50 zones now designated, the reliable check is the plot’s status on DARI, or on the ADGM register for Al Reem and Al Maryah.
XIS tracks prices in six of these areas from registered sales: Al Reem Island, Yas Island, Saadiyat Island, Al Raha Beach, Hudayriyat Island and Masdar City. The quarterly Abu Dhabi market report covers the whole emirate.
Freehold or leasehold: what changes for an investor
- Resale. Every buyer can use a freehold title. A time-limited right appeals to fewer buyers as its remaining term shortens, so expect to pay less for it, and to sell for less.
- Financing. Freehold is the simplest title to mortgage. Rights granted for more than 10 years can be mortgaged by law, but each bank decides what it will lend against. Ask your bank before you sign.
- Residency. The 10-year Golden Visa for property investors requires property worth at least AED 2 million. If the title is not freehold, confirm with the visa authority that it qualifies.
- Costs. Abu Dhabi charges a 2% registration fee on a sale (UAE Expert Hub); Dubai’s Land Department charges 4%. Service charges apply to both forms.
- Price growth. No public data compares price growth by title type in Abu Dhabi. Location, pricing against registered sales, and competing supply matter far more. The Saadiyat and Reem vs Yas analyses show how.
Inheritance: who receives the property
For non-Muslim foreigners, Abu Dhabi Law No. 14 of 2021 allows a will that leaves all UAE assets to anyone the owner chooses. The will can be registered with the Abu Dhabi Judicial Department (official gazette). Without a will, a surviving spouse inherits half (Withers). A freehold passes to heirs in full; a time-limited right passes only for its remaining term. Muslim owners should take legal advice, as Sharia rules apply by default.
How to check a title before you pay
- Ask for the title deed and confirm the form: freehold, musataha, usufruct or lease.
- For any time-limited right, note the start date and the years remaining.
- Confirm the plot is in an investment zone on DARI, or on the ADGM register for Al Reem and Al Maryah.
- Ask whether an older right can be converted to freehold, and at what cost.
- Confirm your bank will lend against that title, and that it meets the Golden Visa rules if residency matters.
- Compare the price with registered sales of similar units with the same title.
For the full buying process, see Buying Property in the UAE; for timing, see Ready vs Off-Plan.
Buying from outside the UAE? See Buying Property in Abu Dhabi as a Non-Resident for the remote process, step by step.
Frequently asked questions
Can foreigners buy freehold property in Abu Dhabi?
Yes, in the designated investment zones, under Law No. 13 of 2019. There are 50 zones, including Yas, Saadiyat, Al Reem, Al Raha Beach, Masdar City and Al Reef.
Is Al Reem Island freehold?
Yes. Since 1 January 2025, Al Reem titles are registered with ADGM rather than ADREC.
What happens when a leasehold ends?
The right ends and the property returns to the landowner, unless the parties agree a renewal. A musataha can be renewed once, by agreement.
Can an older Abu Dhabi leasehold be converted to freehold?
The 2019 law allows registered holders in investment zones to apply for conversion. Requirements and fees are set by the authorities, so ask ADREC or the developer before you buy.
Can I get a mortgage on a leasehold or usufruct?
By law, rights granted for more than 10 years can be mortgaged. Whether a bank will lend, and how much, depends on the bank and the years remaining.
Is a 999-year lease as good as freehold?
That is an English convention. Abu Dhabi law caps usufruct and long leases at 99 years and musataha at 50 years, renewable.
Which is better for an investor in Abu Dhabi?
For a foreign buyer in an investment zone, freehold is the standard and usually the right choice. A time-limited title can make sense only when the price fully reflects the years remaining.
Sources
- Al Tamimi & Company: Law No. 13 of 2019
- CMS: international investors in Abu Dhabi
- UAE government portal: expatriates buying property
- ADREC: H1 2026 results
- Al Tamimi & Company: Al Reem register moves to ADGM
- Abu Dhabi official gazette: Law No. 14 of 2021
- Withers: estate planning in the UAE
- UAE Expert Hub: Abu Dhabi fees
This article explains the general legal position and is not legal advice. Confirm your title with ADREC or ADGM, and take legal advice on inheritance.