Dubai Real Estate Market Poised for Major Growth with Freehold Properties in Sheikh Zayed Road and Al Jaddaf

The Dubai real estate market is set to experience a significant boost following the Dubai Land Department's (DLD) announcement to allow freehold ownership in Sheikh Zayed Road and Al Jaddaf. Experts predict this bold move will trigger a surge in investments and drive long-term growth in the sector.

Freehold Expansion Sparks Investor Interest

Dubai’s strategic location, tax advantages, and investor-friendly policies already make it a global investment hub. Granting freehold status to properties in Sheikh Zayed Road and Al Jaddaf is expected to attract a broader pool of investors, boost market confidence, and enhance the sector’s resilience.

Key Areas for Freehold Conversion

The DLD has identified 457 plots eligible for freehold conversion:

• 128 plots on Sheikh Zayed Road, spanning from the Trade Centre roundabout to Dubai Canal.
• 329 plots in Al Jaddaf, a strategically located area poised for increased commercial and residential activity.

Implications for Real Estate Growth

The move reinforces Dubai’s reputation as a global leader in real estate innovation. Al Msaddi noted that while the high conversion fees might initially lead to elevated asking prices, market dynamics will eventually establish new benchmarks based on buyer demand.

For Sheikh Zayed Road, the shift to freehold ownership opens the area to a global audience, significantly increasing liquidity and competitiveness.

“Previously, plots in this iconic area were developed for lease, limiting flexibility. With freehold ownership, the market becomes more dynamic and appealing to global investors,” said Al Msaddi.

Long-term Market Impact

The initiative aligns with Dubai’s goal to increase real estate transaction volumes by 70% and double portfolio values, aiming to enhance the market’s worth to AED 1 trillion.

How to Convert to Freehold

Eligible property owners can verify their status via the Dubai REST smart app and must submit applications for assessment and valuation to the DLD. A conversion fee of 30% of the property’s valuation based on Gross Floor Area applies, after which owners will receive a freehold title deed.

This landmark decision is expected to elevate Dubai’s position as a premier destination for real estate investment while fostering long-term market stability and growth.

Source: Arabian Business.