Dubai is known as one of the world's most dynamic cities in real estate development, combining a secure investment environment with clear legislation that attracts investors of all nationalities.
In addition to owning apartments and villas, Dubai offers the option of owning land under the freehold system , which gives investors complete freedom to build the project they desire, whether it be a private villa, a residential complex, or a commercial project.
This type of ownership represents a unique investment opportunity, especially for those who wish to design their project from scratch to suit their needs and investment goals.
What is freehold land ownership?
Freehold land ownership is a legal formula that grants the investor the full right to own and dispose of the land without any time restrictions , in addition to the right to build any project on it within the regulations and systems of urban planning in Dubai.
Unlike leasehold land , which grants the right to use the land for a limited period (usually between 30 and 99 years), freehold means that you are the permanent owner of the land and can sell, inherit or mortgage it at any time.
This system has been adopted in Dubai since 2002 and is available to foreigners in specific areas known as freehold areas , which include strategic locations and active real estate markets.
Advantages of land ownership in Dubai for foreigners
Owning land in Dubai under the freehold system offers investors numerous advantages that make it an attractive option, the most important of which are:
- Complete freedom of construction
You can design and build your real estate project as you see fit, whether it's a villa, a residential building, or a commercial project, while adhering to local building regulations.
- permanent ownership of land
There is no time limit on ownership, and you can keep or sell the land at any time.
- Possibility of inheritance
Land ownership is legally transferred to heirs in accordance with the laws in force in Dubai.
- Development and sale potential
You can develop the land and sell it as a ready-made project to achieve high investment profits.
- Diversity of investment sites
Land is available in a variety of areas, from upscale neighborhoods near the beaches to thriving commercial areas.
Areas where foreigners are allowed to own land in Dubai
The Dubai government allows foreigners to own land in specific areas known as freehold areas , which feature strategic locations and advanced infrastructure, including:
The area | Name in English | Main features |
Palm Jumeirah | Palm Jumeirah | Luxurious location on the sea, suitable for luxury villas and tourism projects. |
Dubai Marina | An active tourist and commercial area, ideal for luxury residential projects. | |
Downtown Dubai | The beating heart of Dubai, close to Burj Khalifa and The Dubai Mall, ideal for commercial and residential projects. | |
Business Bay | A major business center, suitable for office buildings, hotels and luxury apartments. | |
Jumeirah Village Circle (JVC) | Quiet family environment, ideal for residential complexes. | |
Mohammed Bin Rashid City | Mohammed Bin Rashid City (MBR City) | Modern projects and large areas for construction. |
Dubai Hills Estate | Dubai Hills Estate | A luxury residential area with spaces allocated for villas and high-end projects. |
Terms and procedures for foreigners owning land in Dubai
To purchase freehold land in Dubai, you must follow clear terms and procedures set by the Dubai Land Department (DLD) :
- Buying in authorized freehold areas
- Foreigners can only own property in areas designated by the Dubai government.
- Ensure land classification
- It is important to know whether the land is residential, commercial, touristic, or mixed-use , as this determines the type of projects permitted to be built.
- Contract with a developer or direct owner
- Land can be purchased from an approved real estate developer or from a private owner through a formal sales contract.
- Signing the sales contract ( Form F )
- The unified contract approved by the Department of Lands and Properties, which includes the details of the transaction.
- Registration in the Land and Property Department
- Pay the registration fees and obtain the title deed in the buyer's name.
- Compliance with building and development regulations
- The owner must comply with the Dubai building code and urban planning laws.
Fees and costs for freehold land ownership in Dubai
When purchasing land in Dubai , there are a number of fees to consider, including:
Item | ratio/amount | comments |
Registration fees at the Department of Lands and Properties | 4% of the land value | One-time fee upon registration. |
Title Deed Issuance Fees | 580 UAE dirhams | Includes administration and documentation fees. |
Real estate broker commission | Up to 2% of the land value | If purchased through an authorized broker. |
Real estate appraisal fees | 2,500 – 3,000 dirhams | Required in case of bank financing. |
Infrastructure service fees | Varies by region | May be imposed on some major development projects. |
Tips before buying land in Dubai
To ensure a successful and secure investment when purchasing freehold land in Dubai, it is recommended to follow the following steps:
- Choosing a strategic location
Select an area that suits your investment goals, whether for developing a residential, commercial, or tourism project.
- Ensure land classification
Check the type of permitted use (residential, commercial, mixed) to avoid any future restrictions.
- Economic feasibility study
Before you start building, develop a clear financial plan that includes development costs and expected returns.
- Ensure infrastructure
Choose land in an area with basic services such as roads, water, and electricity.
- Building regulations review
Check permitted heights, building proportions, and required green spaces.
- Dealing with a trusted real estate broker or advisor
Having an expert saves you time and ensures the integrity of the legal transaction.
Own freehold land in Dubai with Binaa Investment
Owning freehold land in Dubai represents a unique investment opportunity that gives the owner complete freedom to build and develop, and permanent ownership that can be inherited or sold at any time.
Dubai allows foreigners to invest in specific areas with strategic locations and advanced infrastructure, making it an ideal destination for both residential and commercial projects.
However, to ensure a successful purchase and maximize your investment, it is important to carefully study the location, understand local laws, and adhere to building and development regulations.
Binaa Investement comes in , providing you with:
- Specialized consultations for selecting the best lands in freehold areas.
- Check the land classification and ensure it matches your investment objectives.
- Facilitating all purchase and registration procedures at the Dubai Land Department .
- Providing full support during the planning and development phase to achieve the best possible return.
Whether you're planning to build a private villa, a residential complex, or a commercial project, Binaa Investment is your ideal partner to realize a successful investment vision in the heart of Dubai.
