Dubai Opens New Doors for Investors: Freehold Conversion for Sheikh Zayed Road and Al Jaddaf Properties

Dubai’s real estate sector has taken another leap forward with the announcement that private property owners on Sheikh Zayed Road and Al Jaddaf can now convert their properties to freehold ownership. This progressive move by the Dubai Land Department is set to enhance the emirate’s appeal as a global hub for real estate investment, unlocking significant opportunities for both local and foreign investors.

What Does Freehold Conversion Mean?

Freehold ownership allows property owners to have full ownership of both the property and the land it stands on. Unlike leasehold ownership, which is limited to 99 years, freehold properties offer permanent ownership rights, allowing owners to make modifications, pass the property to heirs, and sell or lease it without restrictions.

Key Highlights of the Initiative

  • Eligible Plots: A total of 457 plots are eligible, with 128 on Sheikh Zayed Road (from the Trade Centre roundabout to the Dubai Canal) and 329 in Al Jaddaf.

  • Conversion Benefits:

  • Enhances market value of properties.
  • Attracts high-net-worth individuals and foreign investors.
  • Stimulates demand for real estate in prime locations.

  • Conversion Fee: A fee of 30% of the property’s valuation will be applicable, based on gross floor area.

Economic Significance

This announcement aligns with Dubai’s broader Real Estate Sector Strategy 2033, which aims to double the sector’s GDP contribution to AED 73 billion, increase home ownership rates to 33%, and grow real estate transactions by 70%.

In 2023 alone, Dubai recorded 188,000 real estate transactions worth AED 625 billion, representing a year-on-year increase of 38% in transaction volumes and 23% in value. The conversion initiative is expected to amplify these figures by attracting new investments into Sheikh Zayed Road and Al Jaddaf.

Investor Implications

This move has wide-reaching implications for foreign investors:

  1. Higher Property Value: Property prices in eligible areas are expected to rise, as demand increases following the freehold conversion announcement.
  2. Prime Location Advantage: Sheikh Zayed Road offers unparalleled connectivity, while Al Jaddaf provides proximity to key landmarks and tranquil living.
  3. Long-Term Returns: Freehold properties in Dubai typically yield 7-10% returns on investment, making them a lucrative choice for investors.

Process for Freehold Conversion

Property owners can easily check eligibility and initiate the process via the Dubai REST app. The steps include:

  1. Submitting an application for land assessment and valuation.
  2. Paying the conversion fee (30% of the property valuation).
  3. Receiving a freehold ownership title deed upon successful processing.

A Game-Changer for Dubai’s Real Estate Market

The freehold conversion of Sheikh Zayed Road and Al Jaddaf is expected to drive substantial growth in Dubai’s real estate sector, boosting its position as a global investment hub. The move also sets the stage for a more inclusive real estate market, welcoming investors from around the world to capitalize on the city’s booming property landscape.

Why Invest Now?

With Dubai’s government actively promoting economic diversification, enhancing transparency, and introducing investor-friendly policies, the city has become a magnet for global investors. The conversion initiative is a golden opportunity for those seeking high-growth potential in a market that consistently delivers returns.

Conclusion


Dubai continues to lead the way in innovative real estate reforms. For investors and property owners, the freehold conversion is a chance to secure long-term gains and be part of the city’s thriving property market. Whether you’re an investor or a homeowner, this is the time to explore the untapped potential of Sheikh Zayed Road and Al Jaddaf.

Stay informed and take advantage of this unprecedented opportunity to own a piece of Dubai’s future!

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