Ownership & law
Leasehold
Leasehold is the right to use a property for a long fixed term, often up to 99 years, without owning the underlying land outright.
Under a leasehold, an investor holds the property for a defined period, commonly quoted up to 99 years in Abu Dhabi, after which rights typically revert to the freehold owner unless renewed. It is one of several tenures historically available to expatriates in Abu Dhabi investment zones, alongside usufruct and musataha, and it can usually be sold or sublet within the remaining term subject to the contract. As a general guide, the value of a leasehold interest tends to reflect how many years remain on the term.
Related terms
- Freehold — Freehold is outright, perpetual ownership of a property and its land, giving the owner the right to use, lease, sell, or bequeath it.
- Usufruct — Usufruct is the right to use and enjoy a property, including collecting rent, for a long fixed term, without owning it.
- Musataha — Musataha is a long-term right, typically up to 50 years and renewable, to build on and use another party's land.
- Investment Zone — An investment zone is an Abu Dhabi area designated by law where expatriates and foreign investors can own property under freehold or other tenures.