Dubai has introduced a groundbreaking initiative, allowing private property owners in Sheikh Zayed Road and Al Jaddaf areas to convert their ownership to freehold status. This move aims to enhance Dubai’s reputation as a global hub for real estate investment while providing substantial benefits to property owners.
What Does Freehold Conversion Mean?
Under freehold ownership, investors hold full ownership of the property and the land it occupies. This differs significantly from leasehold ownership, where rights are limited to a maximum of 99 years, after which the property reverts to the freeholder.
Eligible Properties for Freehold Conversion
The Dubai Land Department (DLD) has announced that 457 plots are eligible for conversion:
Sheikh Zayed Road: 128 plots between the Trade Centre roundabout and the Water Canal.
Al Jaddaf: 329 plots.
Property owners can verify their eligibility and initiate the conversion process through the “Dubai REST” app. Once eligible, they must submit an application for land assessment and valuation. A conversion fee of 30% of the property’s valuation, based on the gross floor area, will apply. Upon payment, owners receive a map and a freehold ownership title deed.
Benefits of Freehold Ownership
Freehold ownership offers numerous advantages:
Market Value Boost: Properties with freehold status often command higher market values, benefiting both current and prospective investors.
Flexibility: Owners have the freedom to modify, lease, or sell their property as they wish.
Heir Rights: Freehold properties can be passed on to heirs, providing long-term security.
Investor Attraction: Freehold ownership appeals to international investors, further fueling Dubai’s property market growth.
Why This Initiative Matters
The ability to convert property ownership to freehold is expected to:
Enhance Property Values: Landowners in these prime areas stand to benefit from increased property values due to heightened demand.
Attract Global Investors: Sheikh Zayed Road and Al Jaddaf are prominent locations. Opening these areas to freehold ownership will draw international buyers, further solidifying Dubai’s real estate appeal.
Drive Economic Growth: This initiative aligns with the Dubai Real Estate Strategy 2033, which aims to double the real estate sector’s GDP contribution and increase market transactions by 70% over the next decade.
Implications for the Real Estate Market
Experts predict this move will bring significant growth:
The initiative marks a significant step toward opening more areas to non-local ownership, likely leading to increased property prices in these sought-after locations.
This progressive step will stimulate demand, particularly in a market that is currently experiencing buoyant activity.
Adding freehold land in prime locations will attract investors looking to leverage proximity to the financial center and other key areas.
How to Get Started
Property owners can begin the process by downloading the “Dubai REST” app to check eligibility. After submitting the required documentation and paying the applicable fees, they can enjoy the benefits of freehold ownership in Dubai’s most coveted locations.
Your Next Move
This initiative is a golden opportunity for property owners and investors alike. Whether you’re looking to enhance your property’s value or invest in Dubai’s thriving real estate market, now is the time to act.
Contact Maison Maj Properties to learn how you can take advantage of this groundbreaking initiative. Let us help you secure your foothold in one of the world’s most dynamic real estate markets.