Dubai Allows Property Owners on Sheikh Zayed Road, Al Jaddaf to Convert to Freehold Ownership
Dubai Land Department has announced that private property owners along 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. This decision allows all nationalities to convert their land ownership status to freehold, enhancing property rights and real estate value in these key locations.
Eligible Areas and Properties
A total of 457 plots are eligible for conversion:
- 128 plots along Sheikh Zayed Road
- 329 plots in the Al Jaddaf area
This move is expected to have a significant impact on the real estate sector in Dubai, especially in terms of market value and investment opportunities for landowners in these areas.
Steps to Convert Ownership
If you own property in the specified areas and wish to convert it to freehold ownership, follow these steps:
- Verify Eligibility:
Property owners can verify their eligibility using the Dubai REST app. This app allows you to check if your property qualifies for conversion. - Submit an Application:
Submit an application to the Dubai Land Department for evaluation and valuation of the land. - Pay Conversion Fee:
After your application is reviewed, common area fees and service charges will be assessed according to Real Estate Regulatory Authority (RERA) guidelines. A conversion fee of 30% of the property’s valuation, based on Gross Floor Area (GFA), will apply. - Receive Title Deed:
Upon payment processing, a map and freehold ownership title deed will be issued for the converted property.
Benefits of Freehold Ownership
Converting your property to freehold ownership gives you absolute ownership of both the property and the land it sits on. This means you have the flexibility to:
- Sell the property
- Lease it out
- Occupy it as you wish
With freehold ownership, the restrictions typically imposed on leasehold properties are removed, providing greater control over your asset.
Growth in Dubai’s Real Estate Sector
This initiative is expected to drive significant growth in Dubai’s real estate sector, as more landowners in Sheikh Zayed Road and Al Jaddaf choose to convert to freehold ownership. Eng. Marwan Ahmed bin Ghalita, Director General of Dubai Land Department, emphasized that this initiative aligns with Dubai’s Real Estate Strategy 2033 and reinforces the city’s position as a global economic hub and a premier destination for real estate investment.
Smart Rental Index
In addition to the freehold conversion initiative, Dubai has also introduced a smart rental index, which includes a star rating system for buildings based on factors like maintenance quality and parking management. Buildings with higher ratings will see rents increase, incentivizing landlords to improve their properties through renovations and upgrades.
Leasehold vs. Freehold Ownership
Understanding the difference between leasehold and freehold ownership is crucial:
- Leasehold: You own the property for a fixed term (up to 99 years), but the land remains under the ownership of the freehold owner.
- Freehold: You own both the property and the land it is built on. This type of ownership offers complete flexibility in terms of sale, lease, or occupation.
While leasehold properties may be more affordable upfront, they come with more restrictions compared to the full autonomy granted by freehold ownership.
Source: Khaleej Times
