The Dubai Land Department (DLD) has announced that private property owners in Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf can now convert their properties to freehold ownership, a significant milestone for Dubai’s real estate sector.
Eligibility and Conversion Process
This opportunity is open to all nationalities, with 457 plots eligible for conversion:
- 128 plots along Sheikh Zayed Road.
- 329 plots in Al Jaddaf.
Property owners can confirm their eligibility via the Dubai REST smart app. To proceed with the conversion, the following steps are required:
- Application Submission: Submit an application to the DLD for land assessment and valuation.
- Fee Assessment:
- Common area fees and service charges will be determined as per Real Estate Regulatory Authority (RERA) guidelines.
- A 30% conversion fee based on the property’s valuation (Gross Floor Area) will apply.
- Completion: Once payment is processed, a map and freehold ownership title deed will be issued.
Impact on the Real Estate Sector
The initiative is set to drive significant growth in Dubai’s real estate market by enhancing property values, particularly for those converting to freehold ownership. This supports the broader goals of the Dubai Real Estate Strategy 2033, which aims to:
- Increase real estate transactions by 70%.
- Raise the total value of Dubai’s real estate market to AED 1 trillion.
- Expand Dubai’s real estate portfolio value to AED 20 billion.
According to Eng. Marwan Ahmed bin Ghalita, Director General of the DLD, this move reinforces Dubai’s position as a global economic hub and a premier destination for real estate investment.
Freehold vs Leasehold Ownership
Leasehold Ownership:
- Property rights for a fixed term (up to 99 years).
- No ownership of the land itself.
- Limited flexibility, as modifications require written approval.
Freehold Ownership:
- Complete ownership of the property and land.
- Ability to sell, lease, or modify without restrictions.
- Higher initial cost but significantly greater control and investment potential.
Additional Initiatives
The DLD has also introduced a smart rental index covering all residential areas in Dubai, including special development zones and free zones. Key features include:
- Average rent data for buildings and areas.
- A star rating system for factors like maintenance and parking.
- Potential for landlords of older buildings to increase rent through renovations that improve their ratings.
Conclusion
This initiative marks a significant step forward for Dubai’s real estate sector, offering property owners increased flexibility, greater control, and enhanced investment opportunities. By aligning with the ambitious goals of the Dubai Real Estate Strategy 2033, it reinforces the city’s position as a global hub for innovation, growth, and real estate excellence.