DLD has announced that private property owners in the Sheikh Zayed Road area (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf area can now convert their ownership status to freehold.
Dubai Land Department (DLD) has announced that private property owners in the Sheikh Zayed Road area (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf area can now convert their ownership status to freehold. This initiative is open to all nationalities and is expected to enhance the market value of properties in these prime locations.
Before diving into the details of this new policy, let’s understand what freehold ownership means. In real estate, there are two main types of ownership: leasehold and freehold. Leasehold ownership grants property rights for a fixed term, usually up to 99 years, without ownership of the land. On the other hand, freehold ownership provides absolute ownership of both the property and the land it occupies. This means that freehold property owners can sell, lease, or occupy their property at their discretion.
The DLD’s decision to allow freehold conversion for properties on Sheikh Zayed Road and in Al Jaddaf is expected to bring several benefits. Firstly, it will enhance the market value of properties in these areas. Freehold properties are generally more attractive to investors as they offer greater flexibility and long-term security. This increased market value will benefit landowners who choose to convert their properties to freehold ownership.
Secondly, the initiative is expected to attract new investments to these prime locations. By allowing freehold ownership, Dubai is positioning itself as a more attractive destination for real estate investment. This move aligns with Dubai’s Real Estate Strategy 2033, which aims to increase real estate transactions, raise the total value of the market, and expand the value of real estate portfolios.
Property owners in the designated areas can verify their eligibility for freehold conversion through the Dubai REST smart app. To proceed with the conversion, owners must submit an application to the DLD for land assessment and valuation. Common area fees and service charges will be determined according to the guidelines set by the Real Estate Regulatory Authority.
A conversion fee of 30% of the property’s valuation (based on Gross Floor Area) will be applicable. Once the payment is processed, a map and freehold ownership title deed will be issued for the converted property. This process ensures that property owners receive the necessary documentation to confirm their new ownership status.
The DLD’s initiative is expected to have a significant economic impact on Dubai’s real estate sector. By allowing freehold conversion, the DLD is driving growth in the real estate market and reinforcing Dubai’s position as a global economic hub. The move is also expected to attract long-term investments, making these locations more appealing to investors.
The Dubai Real Estate Strategy 2033 sets ambitious targets to enhance the sector, including increasing real estate transactions by 70%, raising the total value of the market to AED1 trillion, and expanding the value of real estate portfolios to AED20 billion. The freehold conversion initiative is a key step towards achieving these goals.
The DLD’s decision to allow freehold conversion for properties on Sheikh Zayed Road and in Al Jaddaf is a game-changer for Dubai’s real estate market. This move not only enhances the market value of properties but also attracts new investments and strengthens Dubai’s position as a leading destination for real estate investment. Property owners in these areas now have the opportunity to benefit from the flexibility and security offered by freehold ownership, contributing to the growth and development of Dubai’s real estate sector.
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