Should I Be Worried About 99-Year Leases in Abu Dhabi?
A 99-year lease is one of the foreign property ownership rights in Abu Dhabi. It is an agreement where the buyer gets complete ownership of the property, but not the land it sits on. Moreover, this exclusive property possession has certain challenges such as reversion that buyers must know before deciding.
Simply put, one shouldn’t be worried about the 99-year lease in Abu Dhabi as it offers ample tenure for personal or commercial use. After that, the lease can also be renewed. Let’s go through are all the details of the 99-year lease in Abu Dhabi and what happens when it expires.
Understanding the 99-year Lease in Abu Dhabi
In 2019, some major changes took place in Abu Dhabi’s property laws for expats. A 99-year lease in Abu Dhabi is a property ownership arrangement that allows buyers to own the property while the land it occupies remains in the trust of the Owners Association, formed in 2015.
This system, introduced to attract foreign investors, provides long-term security. It enables buyers to live, rent or use the property for personal or commercial purposes. Although buyers don’t own the land, they enjoy exclusive rights to the property for the duration of the lease, offering stability and a sense of ownership. Moreover, the 99-year lease system was established as part of Abu Dhabi’s efforts to open its real estate market to foreign investment.
Pros and Cons of 99-year Lease in Abu Dhabi

Here are some pros and cons of a 99-year lease in the UAE’s capital. This mode of investment allows foreigners to buy property in Abu Dhabi at a comparatively lower price and enjoy the mega lifestyle this city offers.
PROS
- A 99-year leasehold ownership in Abu Dhabi provides buyers with exclusive rights to the property, offering stability for personal or commercial use.
- It enables foreign investors to own property in designated investment zones without requiring UAE citizenship.
- Buyers can rent or sell the property in Abu Dhabi during the lease term, making it a viable long-term investment.
- Many 99-year lease properties are located in well-developed areas, enhancing their value.
CONS
- Buyers own the property but not the land it sits on, which can be a limitation in some cases.
- At the end of the lease term, the property reverts to the freeholder unless renewed or extended.
- Restrictions on modifications or uses of the property may apply, depending on the lease agreement.
What Happens When a 99-year Lease Reaches the End of Its Term?

When a 99-year lease agreement in Abu Dhabi reaches its end, the property rights revert to the OAs unless a renewal or extension agreement is made. This process is known as reversion. Leaseholders may need to negotiate with the freeholder to extend the lease, which often involves paying a premium.
The options available at the end of the lease term depend on the specific terms of the lease agreement. In Abu Dhabi, leaseholders can negotiate renewals or explore other arrangements to retain possession of the property. To avoid complications, leaseholders need to review their agreements well in advance and seek professional advice to prepare for the end of the lease term.
FAQs
What will happen after 99 years of leasehold in Abu Dhabi?
After the 99-year lease expires, the property will be reverted to the OAs.
Is it worth buying an apartment in Abu Dhabi?
Buying an apartment in Abu Dhabi is a sound investment choice due to the city’s strong real estate market and long-term capital appreciation.
Can a foreigner buy a house in Abu Dhabi?
Yes, foreigners can buy a house in one of the freehold property areas of Abu Dhabi.
This was all on the 99-year lease in Abu Dhabi and the major concerns surrounding it. This property law has opened the doors of foreign investment in the city, expanding options for expats who want to buy a property in Abu Dhabi.
Also, those who want to diversify their real estate portfolio can consider these new residential projects in Dubai. These developments offer lucrative opportunities in the capital’s real estate landscape.
To learn more about leasehold property ownership in the UAE, keep reading dubizzle’s real estate blog.