Abu Dhabi Property Ownership Laws for Foreigners in 2025
If you’re a foreign national looking at Abu Dhabi real estate, knowing the new property ownership regulations is important before taking any investment action. Good news: Foreigners are able to buy property in Abu Dhabi legally, but there are some rules, zones, and contract types to know about.
Can Foreigners Buy Property in Abu Dhabi?
Yes. With the 2019 amendments, Abu Dhabi allows foreign nationals and legal persons to buy and own property in full within specified investment zones. This covers villas, apartments, and commercial real estate, to even freehold land—a huge step up from before.
Types of Property Ownership Permitted to Foreigners
Abu Dhabi has four legal systems through which foreigners can acquire or lease property. The following is how each works:
Freehold Ownership (Ownership Deed – 99 Years)
- Foreigners can own residential property in absolute ownership for 99 years.
- You are issued an ownership deed where you can sell, lease, or transfer the property.
- Sold only in freehold zones.
Musataha Contract (50 Years, Renewable)
- Entitles the holder to develop, use, or alter a property for 50 years.
- Can be renewed for another 50 years with the mutual consent of both parties.
- Fit for investors interested in building or renovating property.
Usufruct Contract (99 Years)
- Allows use of property but not construction or alteration.
- Fit for owners interested in a long-term right to inhabit without physical alteration.
Long-Term Lease (At Least 25 Years)
- Foreigners are allowed to rent property for at least 25 years.
- Often used for commercial or residential use.
2019 Amendments: What Changed for Expats?
Before 2019, there were restricted types of ownership for foreign investors and no direct land ownership. The new legislation brought the following significant changes:
- Foreign expats now have the right to buy land in certified investment zones.
- Sales, mortgage, and inheritance are available fully.
- Expat owners no longer require the landlord’s approval to sell or mortgage a property in the case of a contract longer than 10 years (Musataha or Usufruct).
Legal Articles
Article 3 (i): Limits outright ownership of property to:
- UAE nationals or legal persons
- Public joint stock companies with foreign ownership of under 49%
- Any person who is granted ownership rights by the Abu Dhabi leadership
Article 3 (ii): Non-UAE nationals may purchase full rights in investment areas.
Article 4: Expats with long-term tenancies (10+ years) can mortgage or dispose of the property without the landlord’s approval.
Where Can Expats Buy Property in Abu Dhabi?
Foreign investors can buy freehold property only in specific areas. These are:
- Saadiyat Island
- Yas Island
- Al Raha Beach
- Masdar City
- Al Reef
These areas are renowned for luxurious developments, green communities, and high rental demands, making them sought after for personal use and as an investment option.
Frequently Asked Questions:
Do You Receive a Residency Visa When You Purchase Abu Dhabi Property?
Yes, expats can receive a residency visa on property purchase, but there are stipulations:
- It must be worth AED 5 million or higher
- It must be paid for (not on mortgage)
- The property has to be owned by the owner for at least 3 years
This visa offers chances of long-term residence and even of being sponsored by relatives.
Can Foreigners Get a Mortgage in Abu Dhabi?
Yes, expatriates can obtain a home loan from UAE banks. Here’s how it works:
Eligibility:
- Employed expats: Must be employed with the same company for at least 6 months – 1 year.
- Self-employed: Business should have been operating for at least 2 years.
Down Payment Requirements:
- 20–25% for properties with a value of up to AED 5 million
- 35% or more for properties valued more than AED 5 million
You will be asked to provide proof of income, a valid residence visa, and a property sale agreement as well.
What Every Foreign Buyer Should Know?
Before you invest in Abu Dhabi’s real estate sector, ensure you:
- Understand clearly the ownership type best suited to your goals (Freehold, Musataha, etc.)
- Buy only in approved areas for investment
- Transact with a licensed real estate agent
- Consider visa benefits, mortgage rules, and legal requirements
Abu Dhabi continues to attract overseas investors with its stable economy, investor-friendly laws, and good rental yields. If you are investing in a second home or expanding your investment portfolio, knowing the laws allows you to buy smart.
