The Dubai Land Department (DLD) has recently announced an initiative enabling owners of properties located along Sheikh Zayed Road (from the shopping centre roundabout to the water canal) and in the Al Jaddaf area to convert their properties to freehold status. This measure aims to boost the market value of properties and strengthen Dubai’s role as a global centre for property investment.
Eligibility and conversion process
A total of 457 plots are eligible for this conversion, broken down as follows:
- 128 plots along Sheikh Zayed Road
- 329 plots in the Al Jaddaf area
Interested property owners can check their eligibility via the «Dubai REST» app. The conversion process involves several stages, including submitting an application to the DLD, valuing the property, determining the common areas and service charges in accordance with the guidelines of the Real Estate Regulatory Authority (RERA), payment of 30 % of the gross floor area value, and finally, the issuance of the title plan and the freehold title deed.
Benefits of full ownership
Opting for full ownership offers several significant advantages:
- Increase in property value : Full ownership increases the market value and makes the property more attractive to investors.
- Total control : Owners have full title to the property, enabling them to sell, let or use it as they wish.
- Attracting investment : This measure is expected to boost growth in the Dubai property market.
According to Marwan Ahmed bin Ghalita, an engineer and Managing Director of the DLD, this initiative supports the objectives of the Dubai Real Estate Strategy 2033 and strengthens the city’s global economic role.
Long-term lease vs freehold
The Dubai property market mainly offers two types of property:
- Long-term lease : The property is held for a fixed term of up to 99 years, whilst the land remains the property of the developer. Any alterations require the owner’s written consent.
- Full ownership : The owner has full ownership of the property and the land on which it stands, and does not require permission to sell, let or use the property.
Although a long-term lease may initially be less expensive, freehold ownership offers greater freedom and long-term capital appreciation.
Latest developments in the Dubai property market
Dubai continues to innovate in its property sector with the recent introduction of a smart rental index. This tool provides information on average rents in each neighbourhood, building rankings based on the quality of maintenance and car park management, as well as guidance on potential rent increases following refurbishments. The index covers the entire emirate, including free zones and special development zones.
Conclusion
The possibility of converting properties to freehold status on Sheikh Zayed Road and in the Al Jaddaf area offers a unique opportunity for property owners in Dubai. This initiative helps to enhance the value of investments and provides full control over assets, whilst contributing to the dynamic growth of the emirate’s property market.
