Dubai continues to strengthen its position as a premier real estate investment destination with a groundbreaking initiative allowing private property owners on Sheikh Zayed Road and in Al Jaddaf to convert their holdings into freehold ownership. This move by the Dubai Land Department (DLD) is expected to significantly boost the market value of properties in these prime areas and attract global investors.
Key Highlights of the Initiative
- Eligibility and Areas Covered
- The initiative applies to private property owners in two strategic locations:
- Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal)
- Al Jaddaf
- A total of 457 plots are eligible for conversion:
- 128 plots along Sheikh Zayed Road
- 329 plots in Al Jaddaf
2. Inclusive to All Nationalities
The new policy is open to property owners of all nationalities, further cementing Dubai’s reputation as a welcoming hub for international investors.
3. Steps to Convert Ownership
- Eligibility Verification: Owners can confirm their eligibility via the “Dubai REST” app.
- Application Submission: Submit a conversion application to the DLD for property evaluation and valuation.
- Fee Calculation: Pay a conversion fee equivalent to 30% of the property’s valuation based on the Gross Floor Area.
- Service and Maintenance Fees: These will be determined following the guidelines of the Real Estate Regulatory Authority (RERA).
- Title Deed Issuance: Upon payment, a new map and freehold ownership title deed will be issued to the owner.
Driving Real Estate Sector Growth
The initiative is poised to have a transformative impact on Dubai’s real estate market by enabling landowners to enhance the market value of their properties. According to Eng. Marwan Ahmed bin Ghalita, Director General of the DLD, this policy aligns with Dubai’s Real Estate Strategy 2033, aiming to fortify the city’s position as a global economic hub and a leading real estate investment destination.
Smart Rental Index: A Complementary Development
In a related move, Dubai has introduced a smart rental index covering all residential areas across the emirate, including districts, special development zones, and free zones. The index includes:
- Average rental data for buildings and areas
- A star rating system for buildings
- Insights into building quality, maintenance standards, and parking management
Buildings with higher ratings can command higher rents, incentivizing landlords to upgrade and renovate older properties to achieve better ratings. This smart index complements the freehold conversion initiative by fostering a competitive and value-driven real estate market.
A Strategic Leap Forward
Allowing private property owners on Sheikh Zayed Road and in Al Jaddaf to convert their properties to freehold ownership is a bold step that underscores Dubai’s commitment to innovation and economic growth. By enhancing property value and fostering investor confidence, the initiative promises to drive significant growth in Dubai’s real estate sector, solidifying its global stature as a premier investment hub.
