Did you know that Abu Dhabi’s real estate market has a variety of ownership structures for both UAE nationals and foreign investors? While Freehold remains the most popular, each type—Usufruct, Musataha, or ADGM Leasehold—has its own unique advantages. Let’s break them down to give you a clearer picture of how the market works in our city.
1. Freehold Ownership
Ever dreamed of fully owning your own piece of the city? Well, that’s possible—at least in certain investment zones like Al Reem, Saadiyat, or Yas Island. You’ll have full control over your apartment or villa. Want to sell it, rent it out, or renovate? Go for it! However, remember that freehold doesn’t usually extend to the land underneath.
- What’s great about it? You have full control of the property with no time limits.
- A few limitations? It’s mostly limited to units, not land.
- Perfect for: Investors looking for long-term ownership with full flexibility in designated zones.
2. Usufruct Ownership
So, what if you’re looking for a more flexible ownership? That’s where Usufruct comes in. This type lets you use and enjoy the property for up to 99 years—plenty of time, right? You can lease it, make alterations, and feel almost like the owner. The catch? You won’t own the land, and your rights expire after the set period
- What’s great about it? You get long-term rights, much like freehold, but often limited to 99 years.
- A few limitations? The rights expire after a set term, and you don’t own the land.
- Perfect for: Those wanting residential or commercial property without permanent ownership ties.
3. Musataha Agreements
Thinking bigger—like developing a building or launching a major project? Musataha could be your best bet. You don’t own the land, but you get up to 50 years (sometimes even 100 with an extension) to build, lease, or even sell what you develop. This is the go-to for large-scale developers.
- What’s great about it? You can develop, construct, and even mortgage the building on leased land for up to 100 years.
- A few limitations? The land itself belongs to someone else, and the agreement needs renewing after the initial period expires.
- Perfect for: Developers or investors planning large-scale construction projects.
4. ADGM Leasehold
Looking for something extra secure, especially if you’re an international investor? ADGM Leasehold offers up to 99 years in a globally recognized free zone with its own legal framework. This is available in Abu Dhabi Global Market areas like Al Maryah Island and Al Reem Island, offering business-friendly environments with independent dispute resolution mechanisms. Plus, it can be renewed for another 99 years, providing even more long-term stability.
- What’s great about it? Long-term leases with the added security and integrity of an international legal framework.
- A few limitations? It’s only available in the ADGM area and doesn’t include land ownership.
- Perfect for: International investors or businesses looking for long-term stability in a specialized jurisdiction.
Now that you understand Abu Dhabi’s ownership structures, it’s easy to see why Freehold is the most popular for full, long-term ownership. However, if you’re looking for more flexibility, structures like Usufruct, Musataha, or ADGM Leasehold may suit your specific needs. Whatever your investment goals, we’re here to guide you. Reach out to us at 800-2732 or email enquiries@cromptonpartners.com, and we’ll help make your real estate journey in Abu Dhabi a smooth one!
