Is Dubai’s Ownership Shift a Win for Investors?
Ramtin 
Dubai has long been recognized as one of the premier global destinations for Real Estate Investment. In recent years, through strategic decisions and various initiatives, the emirate has transformed into a key economic and business hub. One of the latest moves that could significantly impact Dubai’s real estate market is the approval for property owners in specific areas to convert their properties to freehold ownership. This new development presents numerous opportunities for investors and property owners alike, and it seems poised to further elevate Dubai’s real estate sector.
1. Freehold Ownership in Dubai: Concept and Significance
Freehold ownership refers to complete ownership of both the property and the land on which it is built. Unlike leasehold ownership, where the property owner has the right to use the property for a fixed term (typically up to 99 years) but does not own the land beneath it, freehold ownership grants the owner absolute control over both the property and the land.
In recent years, Dubai has been making efforts to enhance the attractiveness of real estate investment by offering freehold ownership to property owners in various regions. Currently, property owners along Sheikh Zayed Road and in the Al Jaddaf area can now convert their properties to freehold ownership. This initiative, overseen by the Dubai Land Department (DLD), allows property owners to fully own their properties and even sell or lease them without any restrictions.
2. Details of the Conversion Process
According to the Dubai Land Department, property owners in the specified areas along Sheikh Zayed Road (from the Trade Centre Roundabout to the Dubai Water Canal) and Al Jaddaf, covering a total of 457 plots, can now apply to convert their properties to freehold ownership. The conversion process involves the following steps:
Eligibility Check: Property owners must first verify the eligibility of their property via the Dubai REST app.
Property Valuation: After eligibility is confirmed, the property will be evaluated by the DLD for its market value.
Conversion Fee: Once the property is evaluated, a conversion fee of 30% of the property’s value (based on its gross floor area) will be applied.
Issuance of Freehold Title Deed: After the fee is paid, a map and the freehold title deed will be issued to the property owner.
This process allows property owners to have full control over their properties, making it easier to sell, lease, or otherwise manage them. The policy is expected to drive up property values in these areas and attract more investment.
3. Expert Opinions on the Impact of This Change on Dubai’s Real Estate Market
Property Value Growth
Experts believe that this initiative will significantly increase the market value of properties in the affected areas. Engineer Marwan Ahmed bin Ghalita, Director-General of the Dubai Land Department, emphasized that the new policy will enhance property values, especially for owners opting for freehold conversion. Freehold ownership typically increases the appeal of properties, which could drive higher demand and increased property values.
Attracting Foreign Investors
Many analysts predict that the policy will make Dubai an even more attractive destination for foreign investors. The UAE, especially Dubai, has long capitalized on its free-market policies to make it easier for international investors to own property. With this new move, foreign buyers can now secure full ownership of properties in some of Dubai’s most sought-after areas, providing more confidence for long-term investments.
Potential for Increased Sales and Rentals
Experts also forecast that the conversion to freehold will not only drive property sales but also positively impact the rental market. Property owners will have more freedom to lease their properties without restrictions, and renters will likely be more attracted to freehold properties due to their security and long-term stability.
4. Competitive Analysis and Long-Term Outlook
Given that Dubai consistently ranks as one of the top global real estate investment destinations, this change can further solidify its position in the international market. The Dubai Real Estate Strategy 2033, which focuses on sustainable growth and economic development, reassures both local and international investors that Dubai will continue to be a leading market for real estate investment in the years to come.
Strengthening Key Areas for Development
Another significant aspect of this initiative is the development of key areas such as Sheikh Zayed Road and Al Jaddaf, which are already major commercial and residential hubs. These areas, with their easy access to transport networks and modern amenities, are well-positioned for continued growth. The conversion of properties in these regions to freehold ownership is expected to increase property values and make these areas even more attractive for potential buyers and renters.
5. Conclusion
In conclusion, Dubai’s decision to allow property owners in specific areas to convert their properties to freehold ownership is a major step toward boosting the real estate market and attracting more investment. This move not only enhances property values in these regions but also strengthens Dubai’s position as one of the world’s leading real estate investment hubs. Given Dubai’s growing real estate sector and the benefits of freehold ownership, this initiative is likely to have a significant positive impact on the market, leading to higher demand, greater investment, and further growth in the real estate sector.
