DLD allows leasehold to freehold conversion for SZR and Al Jaddaf properties
- About Leasehold to Freehold Conversion
- Criteria and Process
- Freehold Ownership in Dubai
- Freehold vs. Leasehold
- FAQs
The recent announcement from the Dubai Land Department (DLD) regarding the leasehold to freehold conversion of properties on Sheikh Zayed Road and Al Jaddaf has sent ripples through the real estate market. This groundbreaking initiative is set to reshape the landscape of property ownership in these prime areas, enhancing their appeal to local and international investors.
Let’s look at the implications of this leasehold to freehold move, the process to convert leasehold to freehold ownership in these two areas and the potential impact on the real estate sector in Dubai.
The initiative to convert leasehold to freehold: Key details for SZR and Al Jaddaf property owners
The Dubai Land Department (DLD) has identified 457 plots eligible for conversion from leasehold to freehold status, 128 of which are along Sheikh Zayed Road and 329 in Al Jaddaf. This initiative is open to private property owners of all nationalities, marking a significant step towards inclusivity in the real estate market.
Eligibility and Application Process for change from leasehold to freehold
Property owners can use the “Dubai REST” app by DLD to determine if they’re eligible for conversion from leasehold to freehold.
The steps to convert leasehold properties into freehold are as follows:
- Verify Eligibility: Owners must check their property against the list of eligible plots on the DLD Dubai Rest app.
- Submit Application: An application must be submitted to the Dubai Land Department for land assessment and valuation.
- Pay Fees: A conversion fee of 30% of the property’s valuation based on gross floor area is applicable.
- Receive Title Deed: Upon successful payment, owners will receive a freehold ownership title deed and a detailed property map.
Economic Impacts of the change from leasehold to freehold
Projected Value Increases
The conversion of properties to freehold ownership is anticipated to stimulate significant growth in Dubai’s real estate sector. Analysts predict that the increased demand from foreign nationals and investors will drive property values up substantially. This rise is expected to be driven by:
- Increased Demand: The allure of full ownership rights will attract a wider range of buyers to the new freehold locations.
- Redevelopment Opportunities: Older properties may undergo modernisation, further enhancing their value.
Switch to freehold – The Market Reaction
Reactions from the real estate industry professionals highlight the positive implications of this initiative. Many believe that the conversion will benefit residential property owners and commercial investors.
- The decision to allow freehold ownership in Al Jaddaf and Sheikh Zayed Road is poised to attract diverse investors, particularly in one of Dubai’s most sought-after corridors.
- This move will inevitably push property prices and rental rates upward due to heightened interest from expatriates and foreign investors.
The Future of Sheikh Zayed Road and Al Jaddaf after change from Leasehold to Freehold
Sheikh Zayed Road, known for its strategic location and accessibility, will benefit immensely from this initiative. With its proximity to malls, dining establishments and healthcare facilities, the area is already a hotspot for both residential and commercial investments.
Al Jaddaf, while traditionally viewed as a quieter area, is rapidly evolving into a vibrant community focusing on residential and commercial projects. The freehold conversion is expected to catalyse further development, attracting businesses keen on establishing a presence in Dubai.
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Understanding Freehold Ownership
Freehold property law in Dubai signifies complete ownership of a property and its land, allowing investors to modify, sell or lease the property as they see fit. This contrasts with leasehold ownership in Dubai, where the property is owned for a specified period, typically up to 99 years, after which it reverts to the freeholder (the government or a private landlord).
Benefits of Freehold Ownership
There are many benefits of buying freehold property in Dubai.
- Complete Control: Owners have the autonomy to manage their property without restrictions imposed by a landlord.
- Long-term Investment: Freehold properties generally appreciate over time, providing a secure investment.
- Increased Marketability: Properties with freehold status tend to attract more buyers, enhancing their resale value.
Comparative Analysis: Freehold vs. Leasehold
Understanding the difference between freehold and leasehold ownership in Dubai is crucial for potential investors. Here’s a comparison to give you a better idea:
Aspect | Freehold Ownership | Leasehold Ownership |
|---|---|---|
Aspect Ownership Duration | Freehold Ownership Indefinite | Leasehold Ownership Up to 99 years |
Aspect Property Rights | Freehold Ownership Full ownership of property and land | Leasehold Ownership Ownership of property only |
Aspect Flexibility | Freehold Ownership High (sell, lease, modify freely) | Leasehold Ownership Limited (subject to freeholder’s terms) |
Aspect Investment Potential | Freehold Ownership Higher resale value | Leasehold Ownership Generally lower resale value |
The Role of the Dubai Government
The Dubai government has proactively enhanced the real estate landscape through various strategies, including the Dubai Real Estate Sector Strategy 2033. This strategy aims to double the real estate sector’s contribution to the GDP, increase home ownership, and significantly expand real estate transactions.
This latest initiative demonstrates the government’s commitment to creating a favourable investment climate. By allowing foreign ownership in prime locations, Dubai positions itself as a leading destination for real estate investment.
FAQs about leasehold to freehold conversion in Dubai
How to convert leasehold property into freehold on Sheikh Zayed Road and Al Jaddaf?
Property owners in Al Jaddaf and Sheikh Zayed Road can determine whether or not they are eligible for conversion from leasehold to freehold by using one of the popular real estate apps in Dubai – Dubai REST by DLD.
Eligible owners can submit a request to the DLD for land evaluation and valuation and make the payment to obtain their new freehold title deed.
Which are the popular freehold areas in Dubai?
The Freehold Decree, a property law established in Dubai in 2002, permits foreign individuals to purchase real estate in designated areas of Dubai under freehold ownership. Popular freehold areas in Dubai include Dubai Marina, Downtown Dubai, Palm Jumeirah, Dubai Hills Estate and Business Bay.
What other initiatives has DLD introduced to boost the real estate sector in Dubai?
Dubai Land Department also introduced a Smart Rental Index in 2025, which includes real-time updates based on the star rating system, information on old and new buildings, and the average rent for the area and the specific building.
Approving the conversion of properties on Sheikh Zayed Road and Al Jaddaf from leasehold to freehold marks a pivotal moment in Dubai’s real estate journey. As demand for properties in these areas increases, investors can expect a thriving market environment with higher returns and diverse opportunities.
Whether you are a local or an international investor, now is the time to explore the possibilities that freehold property ownership offers in Dubai’s dynamic real estate sector.
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