Dubai Allows Property Owners on Sheikh Zayed Road, Al Jaddaf to Convert to Freehold Ownership
Private Property Conversion to Freehold
Private property owners in Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and the Al Jaddaf area can now convert their properties to freehold ownership, as announced by the Dubai Land Department (DLD).
The initiative is open to all nationalities, with a total of 457 plots eligible for conversion:
- 128 plots on Sheikh Zayed Road
- 329 plots in Al Jaddaf
Steps to Convert Ownership
-
Verification:
Owners can confirm their eligibility through the "Dubai REST" application. -
Application Submission:
Submit a request to the Dubai Land Department for evaluation and valuation of the land. -
Fee Calculation:
Common area fees and service charges will be determined based on Real Estate Regulatory Authority (RERA) guidelines. A conversion fee of 30% of the property’s valuation (calculated on Gross Floor Area) will apply. -
Final Steps:
After payment is processed, owners will receive a map and a freehold ownership title deed for the converted property.
Impact on Dubai’s Real Estate Sector
This initiative aims to benefit landowners by increasing the market value of their properties and driving growth in Dubai’s real estate sector. According to Eng. Marwan Ahmed bin Ghalita, Director General of the DLD, the move aligns with Dubai’s Real Estate Strategy 2033 and strengthens Dubai's position as a global economic hub and leading real estate investment destination.
Additional Developments
Dubai has also launched a smart rental index, which includes features such as average rents by area, a star rating system for buildings, and data on maintenance and parking management. Landlords of older buildings can increase rent if renovations lead to higher ratings.
Leasehold vs. Freehold Ownership
- Leasehold: Ownership rights are limited to a fixed term (up to 99 years) without land ownership.
- Freehold: Provides absolute ownership of both the property and the land, offering flexibility to sell, lease, or occupy.
While leasehold properties may have lower initial costs, freehold ownership offers greater autonomy and long-term investment value.
Source: Khaleej Times