Dubai Property Owners Win Big: SZR, Al Jaddaf Turn Freehold
Dubai’s real estate market has shown impressive growth with 188,000 transactions worth Dh625 billion ($170 billion) until November, a 38% volume increase from last year. The new property reform now lets owners of 457 plots convert their properties to freehold ownership. These include 128 plots along Sheik Zayed Road and 329 plots in Al Jaddaf. This reform matches Dubai’s Real Estate Strategy 2033 that wants to stimulate real estate transactions by 70% and lift the market value to Dh1 trillion. The reform will boost property values in these prime locations and attract new investments. This step deepens Dubai’s position as a global economic hub and a leading real estate investment destination.
Historic Property Reform Unveiled
The Dubai Land Department has revealed a groundbreaking property reform. Private property owners in key Dubai locations can now convert their properties to freehold ownership. This initiative includes properties along Sheik Zayed Road, from the Trade Center Roundabout to the Water Canal, and the Al Jaddaf area. The new freehold ownership structure gives investors direct title ownership of both the property and the land.
Landowners will benefit from improved market values and greater investment potential. Property owners can check their eligibility through the Dubai REST smart app. They can submit applications to the Dubai Land Department to get a full assessment and valuation. Converting the property requires a fee of 30% of the property’s valuation, which is based on Gross Floor Area.
Sheik Zayed Road has transformed from a modest highway into a prestigious corridor. It now features 22 skyscrapers that stand over 300 meters tall. The area represents Dubai’s architectural ambition with its world-renowned developments and strong infrastructure.
Marwan Ahmed bin Ghalita, Director General of DLD, highlighted that this initiative lines up with Dubai’s role as a global economic hub. This reform strengthens Dubai’s real estate sector, especially in these prime locations that showcase the emirate’s development excellence.
Implementation Process and Requirements
Dubai Land Department has created a simple process for property owners who want to convert to freehold ownership. Property owners can check if they qualify through the Dubai REST smart app. The program covers 457 plots. These include 128 plots on Sheik Zayed Road and 329 in Al Jaddaf.
Here’s what you need to do to convert your property:
- Submit your application to Dubai Land Department to assess the land
- Get your property valued based on Gross Floor Area
- Learn about common area fees from Real Estate Regulatory Authority guidelines
- Pay the conversion fee (30% of property value)
- Get your freehold ownership title deed and new property map
The Real Estate Regulatory Authority sets the common area fees and service charges. Once the valuation is done, owners pay a conversion fee that equals 30% of their property’s assessed value.
Dubai Land Department reviews the conversion application and gives owners a new freehold ownership title deed with an updated property map. The property then becomes freehold, which means owners get permanent rights to both the property and its land.
People of all nationalities can apply for ownership conversion. This matches Dubai’s plan to make its real estate market more accessible. The simplified process helps landowners get better property values and stronger investment opportunities in these prime locations.
Market Impact Analysis
The latest market analysis shows huge growth potential for properties in these new freehold areas. Studies predict a 7-10% return on property investment in Dubai‘s freehold zones. The real estate sector has showed strong results, with transactions hitting 188,000 and a combined value of Dh625 billion as of November. This represents a 38% increase in volumes and 23% rise in values year-on-year.
The conversion initiative brings several market advantages:
- Property values rise in prime locations
- More appeal to international investors
- A stronger economic profile for Sheik Zayed Road and Al Jaddaf
- Better chances for long-term value growth
- More opportunities for freehold investors
This reform lines up with Dubai’s ambitious Real Estate Strategy 2033. The strategy wants to double the sector’s contribution to Dubai’s GDP to about Dh73 billion. The main target is to expand real estate portfolios to Dh20 billion.
Current landowners benefit by a lot through immediate property value increases. The reform creates opportunities for whole building and individual unit sales to all nationalities. This includes areas that were previously limited to UAE and GCC nationals. The area between World Trade Center roundabout and the Water Canal should see strong buyer interest, especially with Dubai’s current strong property market.
The economic impact goes beyond immediate property values. New waves of investment will come in as the reform encourages real estate developments for freehold investors. This smart move makes Dubai’s market more dynamic and investment-friendly. Long-term investors looking for stable returns will find this especially attractive.
Dubai has unveiled groundbreaking property reforms that are changing its real estate world. The government’s decision to convert 457 plots along Sheik Zayed Road and Al Jaddaf into freehold properties shows its steadfast dedication to market growth and investor-friendly policies.
The Dubai Land Department’s well-laid-out implementation process gives property owners a chance to boost their value through direct title ownership. These changes come at a time when the market is doing exceptionally well, with 188,000 transactions worth Dh625 billion recorded by November.
This move fits perfectly with Dubai’s Real Estate Strategy 2033 and aims to double the sector’s GDP contribution to Dh73 billion. Property owners will see their market values rise, and international investors can now access prime locations that were once restricted to specific nationalities.
Dubai’s real estate sector keeps growing stronger and cementing its place as a global investment hub. These strategic locations’ conversion to freehold properties will bring substantial returns to investors and help achieve the emirate’s economic diversification goals.
