Major Shift: Dubai Opens Freehold Conversion for Property Owners on Sheikh Zayed Road and Al Jaddaf!

In a landmark decision that is likely to change the face of real estate, Dubai opens freehold conversion for property owners along Sheikh Zayed Road and Al Jaddaf. This move means private property owners in these strategic locations can now convert their ownership status to freehold, giving full ownership rights over the land and property. A new initiative by the Dubai Land Department (DLD) has been launched to boost the attractiveness of the locations in the Dubai market to investors at a local and global level.

The total plots that are eligible for conversion under this scheme are 457, with 128 plots located on Sheikh Zayed Road (stretching from the Trade Centre Roundabout to the Dubai Canal) and 329 in Al Jaddaf. This strategic shift is in line with the Dubai Real Estate Strategy 2033, which aims to amplify the emirate's real estate sector's contribution to GDP, increase home ownership, and foster long-term economic growth.

A Boost for Investors and Landowners

Industry analysts have termed the decision as game-changing. From freehold ownership, investors and owners will fully enjoy the property, in contrast to the leasehold scheme that grants them rights for 99 years. According to the Dubai Land Department, this is one of the significant benefits for landowners where they stated: “The initiative is set to enhance property values significantly, particularly for those opting for freehold conversion, paving the way for future developments and drawing a new wave of investment to Sheikh Zayed Road and Al Jaddaf.”

Since when Dubai opened freehold conversion for property owners, experts believe the same thing, stating that prices here are going to rocket. Novvi Properties Head of Brokerage Mario Volpi said, “This move could mark the beginning of widespread freehold availability for non-locals in key Dubai locations. It’s a massive boost for those owning plots in these areas, with prices set to climb as demand surges.”

The initiative is expected to attract both global and regional investors, reinforcing Dubai’s reputation as a top-tier destination for real estate investment. Declan King, senior partner at ValuStrat, noted,  “Opening up Sheikh Zayed Road and Al Jaddaf to freehold ownership is a very progressive step, likely to attract strong buyer interest, especially given the buoyancy of Dubai’s property market.”

The Mechanics of Conversion

Property owners keen to benefit from this initiative can initiate the process through the Dubai REST app, a platform designed for convenience and transparency. The steps include:

• Verifying eligibility via the Dubai REST app.

• Submitting an application to the DLD for land assessment and valuation.

• Payment of a property conversion fee Dubai of 30% of the assessed value based on gross floor area.

Upon clearing the fee, the freehold property Dubai ownership title deed will be awarded to the owner. Common area fees and service charges will fall within the ambit of the Real Estate Regulatory Authority (RERA) for regulation. That way, the transition into Dubai's new mainstream economic goals will be smooth.

Investors have long been attracted to the Dubai property ownership model. Now, investors can take advantage of this new option for converting leasehold properties into freeholds, which gives them further flexibility and security. Experts say this would also spur the demand for the properties in those areas affected, thus allowing for the whole building and individual unit sales to all nationalities.

A Long-Term Vision for Dubai Real Estate

The freehold conversion initiative is part of Dubai’s larger vision to double the real estate sector’s contribution to GDP by 2033. The Dubai Real Estate Strategy 2033 sets ambitious goals, including raising market value to AED 1 trillion and increasing real estate transactions by 70%. By enabling freehold conversions, the government is making strides toward these targets while ensuring Dubai remains a magnet for global investors.

The inclusion of prime areas such as Sheikh Zayed Road real estate and properties in Al Jaddaf underscores the government’s focus on high-demand zones with strong development potential. Marwan Ahmed bin Ghalita, Director General of the Dubai Land Department, highlighted the broader implications: “This move reinforces Dubai’s position as a global economic hub, driving growth in real estate and ensuring sustainable urban development.”

While details on associated fees and regulations continue to emerge, the announcement has already sparked significant interest in Al Jaddaf property conversion from investors worldwide. Matthew Green, head of research at CBRE Mena, stated, “This initiative is likely to attract increased investor interest, particularly in areas like Sheikh Zayed Road, which offer proximity to major economic hubs and demand generators.”

Freehold vs Leasehold Ownership: Why It Matters

Understanding the distinction between freehold property Dubai and leasehold ownership is key to appreciating this initiative’s impact. Freehold ownership grants investors full rights over the land and property indefinitely, while leasehold ownership is limited to a set period, typically 99 years, after which rights revert to the freeholder.

The Freehold Decree of 2002 allowed foreigners to own properties in designated areas, and since then, Dubai has become a global leader in real estate investment. This latest move to expand freehold opportunities further cements the emirate’s appeal.

With freehold ownership, investors enjoy benefits such as higher returns on investment, long-term residency options, and the freedom to sell, lease, or modify their properties. Studies estimate returns on freehold property Dubai investments range between 7-10%, making it an attractive option for those seeking stability and profitability.As Dubai opens freehold conversion for property owners on Sheikh Zayed Road and Al Jaddaf, this initiative marks a significant milestone in the emirate’s real estate journey. With a robust strategy in place and increasing global interest, Dubai continues to redefine its real estate landscape, setting new benchmarks for growth and innovation.