Overview of the Initiative
Dubai has announced that private property owners along Sheikh Zayed Road and in the Al Jaddaf area can now convert their properties to freehold ownership. This initiative, introduced by the Dubai Land Department (DLD), is open to all nationalities and aims to enhance the real estate market’s transparency and value.Eligible Properties
A total of 457 plots qualify for this conversion, with 128 plots located along Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and 329 plots in Al Jaddaf. This move is expected to significantly increase the market value of these properties.
Steps to Convert Ownership
- Verify Eligibility: Property owners can check their eligibility through the Dubai REST smart application.
- Submit Application: Owners must submit an application to the DLD for evaluation and valuation of their land.
- Determine Fees: Common area fees and service charges will be assessed according to the guidelines set by the Real Estate Regulatory Authority (RERA). A conversion fee of 30% of the property’s valuation (based on Gross Floor Area) will apply.
- Receive Title Deed: Upon payment processing, owners will receive a map and a freehold ownership title deed for their converted property.
Impact on Real Estate Sector
This initiative is poised to benefit landowners by enhancing property values and attracting new investments. Eng. Marwan Ahmed bin Ghalita, Director General of DLD, stated that enabling private property owners to convert their properties to freehold ownership will drive significant growth in Dubai’s real estate sector. This aligns with Dubai’s Real Estate Strategy 2033, reinforcing its position as a global economic hub.
Understanding Leasehold vs. Freehold
- Leasehold Ownership: This allows ownership of property rights for a fixed term (up to 99 years) but does not include ownership of the land.
- Freehold Ownership: This grants absolute ownership of both the property and the land it is built on, allowing for greater flexibility in selling, leasing, or occupying the property.
Conclusion
The ability for property owners along Sheikh Zayed Road and in Al Jaddaf to convert their properties to freehold ownership marks a significant advancement in Dubai’s real estate landscape. This initiative not only enhances property values but also solidifies Dubai’s status as a premier destination for real estate investment.
