Buying or using property in Dubai does not always require full ownership. In some cases, a person or company may receive the legal right to use a property and benefit from it for an agreed period, while ownership of the property remains with another party.
This type of arrangement is known as usufruct. Depending on the agreement, it can apply to land, buildings, or individual real estate units and can provide long-term rights without transferring full ownership.
This guide explains how usufruct rights in Dubai work, how they differ from freehold, leasehold, and other property rights, how they are registered, and the key points to review before entering into an agreement.
What Is Usufruct in Dubai Real Estate?
Usufruct is a real property right that allows a person or company to use and benefit from property owned by another party for an agreed period while the legal ownership of the property remains with the original owner.
Depending on the terms of the agreement and the approved use, the usufruct holder may occupy the property, use it for an authorised activity, or receive income generated from it. These rights are limited to what is set out in the agreement and recorded with the Dubai Land Department (DLD).
In Dubai, usufruct rights can be granted for periods of up to 99 years. Unlike an ordinary tenancy, the right is registered with DLD as an interest in the property, giving the holder a formally recognised long-term property right.
The owner grants the beneficiary the right for an agreed period in return for the payment or other consideration stated in the contract.
The agreement should identify the property, parties, start and expiry dates, and permitted purpose. It should also allocate maintenance, insurance, service charges, alterations and other costs. The beneficiary receives only the rights granted and registered.
At expiry, the property returns to the owner's full control unless a valid extension is agreed and registered. The agreement should explain the required condition at handover and how improvements will be treated.
How Long Can a Usufruct Right Last in Dubai?
A usufruct right in Dubai can be granted for a period of up to 99 years. However, the actual duration depends on the term stated in the registered agreement.
Where a real estate unit is created under a usufruct right over the underlying land, the unit cannot continue beyond the expiry of that underlying right. Its expiry date must therefore correspond with the registered usufruct term affecting the land.
If an existing usufruct interest is transferred to another buyer, the new holder receives only the remaining term rather than a new 99-year period. Buyers should therefore check the original commencement and expiry dates before assessing the value of the right.
How Is Usufruct Different From Other Property Rights?
Property right
What it provides
Duration and registration
Freehold
Ownership of the property
No fixed expiry; registered with DLD
Usufruct
Right to use and benefit from another person's property
Fixed term of up to 99 years; registered with DLD
Musataha
Right to build on another person's land and benefit from the building
Term of up to 50 years under the current DLD service; registered with DLD
Ordinary tenancy
Right to occupy a property under a rental contract
Based on the tenancy term; generally registered through Ejari
Can Foreigners Acquire Usufruct Rights in Dubai?
Yes. Non-UAE nationals can acquire registered usufruct rights for periods of up to 99 years in areas and plots designated for foreign property rights in Dubai.
Eligibility can depend on the specific property or plot rather than the wider neighbourhood alone. Buyers should therefore confirm that the exact property is eligible for usufruct and that the registered owner has the legal right to grant it.
Before entering into an agreement, it is also important to review the property records for any existing mortgages, restrictions or other registered interests that could affect the usufruct right. The agreement and DLD registration should clearly reflect the duration, permitted use, and rights being granted.
How Do You Register a Usufruct Right in Dubai?
The registration process depends on whether the property is completed or still under development.
For a Completed Property
Registration is generally completed through a Real Estate Registration Trustee Centre. The process may include:
Confirm the Property Is Eligible
Check that the property can be registered under a usufruct arrangement and prepare the signed agreement.
Obtain the Required Approvals
Secure the developer's electronic no-objection certificate where required.
Prepare the Identification Documents
Provide the Emirates ID or passport details of the parties involved.
Provide a Power of Attorney if Required
A valid power of attorney may be needed if a representative is completing the transaction.
Submit the Registration and Pay the Fees
Submit the required documents through the applicable registration process and pay the relevant charges.
Receive the Registration Document
Once completed, the relevant electronic certificate or registered property document is issued.
Corporate parties may also need to provide company registration, ownership, and authorisation documents.
For an Off-Plan Property
Where the property is still under development, the initial right may be registered by the developer through Oqood. The agreement and provisional registration should clearly state the usufruct period, including its commencement and expiry dates.
How Much Does Usufruct Registration Cost?
DLD's current service information lists these charges for registering a long-term right:
Cost
Amount
Registration
2% of the rental value from the owner and 2% from the beneficiary or lessee
Title certificate or title deed
AED 250
Property map
Depends on the property and map type
Knowledge fee
AED 10 for each applicable fee
Innovation fee
AED 10 for each applicable fee
Registration Trustee service
AED 4,000 plus VAT for a value of AED 500,000 or more; AED 2,000 plus VAT below AED 500,000
Note: The transaction classification and DLD valuation can affect the final calculation. Mortgage registration, valuation, legal advice and translation may cost extra. Fees are subject to change. Request an official fee statement from DLD or the Registration Trustee Centre before completing the transaction.
Can a Usufruct Right Be Sold, Mortgaged or Inherited?
A registered usufruct right may be transferred during its term, subject to the agreement and the applicable Dubai Land Department (DLD) requirements. The new holder receives only the remaining period of the existing usufruct right rather than a new term.
A usufruct right may also be mortgaged where the applicable requirements are met. Any financing will remain subject to the lender's approval, the property valuation and the remaining duration of the usufruct.
Usufruct rights may also pass through inheritance. In that case, the transfer must follow the relevant estate, court and DLD procedures, and the original expiry date of the usufruct remains unchanged.
What Should the Usufruct Agreement Cover?
A usufruct agreement should clearly define the rights of both parties, how the property can be used and what happens when the right ends.
Key points to include are:
Property and Ownership Details
The property description, title information, and registered owner.
Usufruct Term
The commencement date, expiry date, and remaining duration of the right.
Permitted Use
Whether the property can be used for residential, commercial, or another approved purpose.
Payments and Costs
The agreed payment terms, registration fees and any ongoing charges.
Maintenance and Improvements
Responsibility for maintenance, insurance, alterations and improvements made to the property.
Transfer and Financing Rights
Whether the usufruct can be rented, transferred or mortgaged and what approvals may be required.
Default and Early Termination
The consequences of a breach and the procedures for amendment or early termination.
End-of-Term Arrangements
The required condition of the property at expiry and how any improvements will be treated.
Dispute Resolution
The process to follow if a disagreement arises between the parties.
The final agreement should be consistent with the property title and DLD registration. Any important right, restriction, or obligation should be recorded in the contract rather than left to verbal assurances or informal messages.
How Does a Usufruct Right End?
A usufruct right normally ends when the registered term expires. It may also end earlier if both parties agree, the termination is properly registered, or another legal basis applies.
Where an early termination is required, the relevant documents must be submitted through the applicable DLD process so the property record can be updated. This may include a termination letter, identification documents, and the required fees.
Ending the usufruct right does not automatically settle all outstanding obligations between the parties. They may still need to resolve:
Unpaid amounts or other financial obligations
Damage to the property
The treatment of improvements or alterations
Any registered mortgage or financing
Other responsibilities stated in the agreement
The contract should therefore explain clearly what happens when the usufruct ends and what each party must complete before the arrangement is fully closed.
Conclusion
Usufruct can provide long-term rights to use and benefit from property in Dubai without transferring permanent ownership. Its value depends not only on the property itself, but also on the remaining term, permitted use, and the rights recorded in the agreement.
Before entering into a usufruct arrangement, buyers should confirm the property details, registered owner, duration of the right, and any restrictions affecting transfer, financing, or use. The agreement should also clearly explain the costs, responsibilities and what happens when the usufruct expires.
For enquiries about the latest Binghatti properties, contact Binghatti property consultants on +971 800 15.
Usufruct is a registered right to use and benefit from property owned by another party for a defined period.
How long can a usufruct right last in Dubai?
A usufruct right can last for up to 99 years. The actual duration is the period stated in the agreement and registered with DLD.
Can a foreigner hold a usufruct right in Dubai?
Yes. Non-UAE nationals may acquire usufruct rights in areas and plots designated for foreign property interests, subject to DLD registration and the conditions of the transaction.
Can a usufruct right be transferred to another person? Drag
Yes, a registered right may be sold during its term, subject to the agreement and DLD requirements. The purchaser receives only the remaining period.
Is usufruct the same as an Ejari tenancy?
No. Usufruct is a real property right registered in DLD's Real Property Register. An ordinary tenancy is a rental arrangement governed by tenancy rules and generally registered through Ejari.
Starting AED 774,999 
Al Jaddaf
Studio | 1 BR | 2 BR | 3 BR
