Dubai has announced that private property owners of all nationalities can now convert their holdings in select locations to freehold ownership, marking a strategic move to bolster the city’s real estate market. This change affects 457 plots, including 128 along Sheikh Zayed Road (from the Trade Centre roundabout to Dubai Canal) and 329 in Al Jaddaf, according to the Dubai Land Department.
Freehold ownership allows property owners to retain full rights to their land and structures indefinitely, significantly enhancing the appeal of these areas.
This initiative provides landowners with greater opportunities to increase the market value of their properties, especially when opting for freehold ownership. It also positions these locations as attractive hubs for new real estate projects, drawing in fresh investments.
Boosting Dubai’s Real Estate Market
Marwan Ahmed bin Ghalita, Director General of the Dubai Land Department, emphasized that this decision strengthens Dubai’s role as a global destination for real estate investment and a cornerstone of economic growth.
Declan King, senior partner at ValuStrat, described the move as forward-thinking, allowing foreign investors to purchase entire buildings or individual units in areas previously reserved for UAE and GCC nationals. The inclusion of Sheikh Zayed Road and Al Jaddaf expands options for buyers, especially in the current thriving property market, according to King.
Matthew Green, head of research at CBRE Mena, highlighted the strategic value of the newly eligible locations saying that prime plots near the financial center are now more accessible, which will likely draw strong investor interest.
Economic Growth and Future Projections
Dubai’s real estate sector has seen remarkable activity, with 188,000 transactions totaling AED 625 billion recorded as of November – a 38% increase in volume compared to the previous year. These developments align with the emirate’s broader 2033 real estate strategy, which aims to double the sector’s contribution to GDP and significantly increase property transactions and market value.
Process for Ownership Conversion
Property owners can determine their eligibility for freehold conversion through the Dubai REST app. Applications require land assessment and valuation by the Dubai Land Department. Following approval, owners must pay a conversion fee of 30% of the property’s valuation, after which they receive a freehold title deed.
Freehold Benefits
Unlike leasehold ownership, freehold allows property owners permanent control over their land and buildings. Additional benefits include long-term residency visas, inheritance rights, and the flexibility to modify, sell, or lease the property. These features, combined with high investment returns averaging 7-10%, make freehold ownership an attractive option for investors.
This initiative is expected to significantly enhance Dubai’s appeal as a leading real estate destination while supporting the city’s broader economic ambitions.
Article reference: The National.
