Leasehold and Commonhold Fees in Dubai Explained

Leasehold in Dubai gives you the right to use a property for a fixed term, usually up to 99 years, and is registered with the Dubai Land Department for a fee. Commonhold is the structure that makes you a part owner of the shared parts of a building, which is what your service charge pays for.

Most buyers meet both words without anyone explaining either. Figures current as of September 2026.

How do the three structures differ?

Structure	What you own	Ongoing cost
Freehold	The property and the land, forever	Service charge
Leasehold	The right to use it for a fixed term	Service charge, plus ground rent where it applies
Commonhold	Your unit, plus a share of the common parts	Service charge set by the owners association

What does leasehold registration cost?

A long lease is registered with the Dubai Land Department and carries a registration fee calculated on the value, along with the standard administrative charges. It is lower than the 4 percent freehold transfer fee, which is one reason leasehold deals look cheaper at the front end. The term is what you are really buying, so check how many years remain: a lease with 40 years left is a very different asset from one with 95.

What does commonhold mean for my service charge?

In a commonhold building you own your unit and a share of everything else: the lifts, the lobby, the roof, the plant. The owners association manages those on behalf of all owners and bills each unit its share, which is your service charge. That is why the charge follows the building rather than your flat, and why a tower with a pool and a concierge costs more per square foot than a simple block.

Which should I buy?

Freehold where you can, which in practice is almost every area an overseas buyer would consider. Leasehold is worth considering when the location is not available freehold and the remaining term is long. Read what freehold ownership actually gives you and how service charges are set, then ask us about a specific building.

Frequently asked questions

What is leasehold property in Dubai?+

The right to use a property for a fixed term, usually up to 99 years, after which it reverts to the freeholder. The lease is registered with the Dubai Land Department, and the remaining term is what determines its value.

What does leasehold registration cost?+

A registration fee calculated on the value of the lease plus standard administrative charges. It is lower than the 4 percent transfer fee on a freehold purchase, which is part of why leasehold looks cheaper up front.

What is commonhold?+

The structure where you own your unit plus a share of the common parts of the building. The owners association manages those parts and bills each owner a share of the cost, which is your service charge.

Do leasehold owners pay service charges?+

Yes, and sometimes ground rent as well, depending on the terms of the lease. Read the lease rather than assuming the cost is the same as a freehold unit in the same building.

Is leasehold worth buying in Dubai?+

Only where the location is not available freehold and the remaining term is long. Most areas an overseas buyer would consider are freehold, so leasehold is the exception rather than the norm.