Dubai's Real Estate Investment Boost Expands
Dubai Land Department (DLD) has announced that property owners on Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf can now convert their properties to freehold ownership. This initiative aims to boost the market value of properties while strengthening Dubai's role as a global center for real estate investment.
Who is eligible for freehold ownership?
The change is available to all nationalities, with a total of 457 plots eligible for conversion, including:
a, 128 plots along Sheikh Zayed Road,
b, 329 plots in the Al Jaddaf area.
Affected property owners can first check their eligibility for conversion via the "Dubai REST" smart application.
Process of converting to freehold ownership
To acquire freehold ownership, the following steps are needed:
1. Eligibility check: Property owners can use the "Dubai REST" app to verify if they meet the requirements.
2. Application submission: Owners must submit their application to the Dubai Land Department for property appraisal and evaluation.
3. Determination of common area and service fees: Fees will be set according to guidelines by the Real Estate Regulatory Authority (RERA).
4. Payment of conversion fee: 30% of the property's Gross Floor Area value must be paid.
5. Issuance of ownership map and freehold title deed: After payment, new ownership documents will be issued.
Why choose freehold ownership?
Converting to freehold ownership on Sheikh Zayed Road and Al Jaddaf offers numerous benefits, such as:
a, Increased property value: Freehold ownership enhances the property's market value and appeal to investors.
b, Full control: Owners enjoy full possession of the property, allowing for sale, rental, or personal use.
c, Investment attraction: The change is expected to significantly contribute to Dubai's real estate market growth.
According to Eng. Marwan Ahmed bin Ghalita, Director General of DLD, this step supports the goals of the Dubai Real Estate Strategy 2033 and strengthens the city's global economic role.
Leasehold vs. freehold: What's the difference?
Dubai’s real estate market features two main types of ownership:
a, Leasehold: The property can be held for a set period, up to 99 years, while the land remains with the developer. Written permission from the owner is required for any changes.
b, Freehold: The owner fully possesses both the property and the land it is built on, with no need for permission to sell, rent, or use the property.
Though securing a leasehold may initially be cheaper, freehold ownership offers greater freedom and long-term value appreciation.
Further developments in Dubai's real estate market
Dubai continues to advance its real estate sector, and recently introduced a smart rental index, which includes:
a, Average rents in each neighborhood,
b, Star ratings of buildings based on maintenance quality and parking management,
c, Potential rent increases post-renovations.
The rental index applies across the emirate, including free zones and special development areas.
Summary
The freehold ownership conversion available on Dubai's Sheikh Zayed Road and Al Jaddaf area provides unique opportunities for property owners to enhance the value of their investments and gain full control over their assets. The new measure is expected to invigorate the property market and further solidify Dubai’s leading position on the global real estate investment map.
