Key Takeaways

• Dubai is expanding freehold areas to attract new investments, allowing property owners on Sheikh Zayed Road and Al Jaddaf to convert ownership to freehold for all nationalities.
• The conversion initiative aims to boost growth in Dubai’s real estate sector, enhancing market attractiveness and encouraging long-term investments, as noted by Marwan Bin Ghalita, director-general of the Dubai Land Department.
• A total of 457 plots, including 128 on Sheikh Zayed Road and 329 in Al Jaddaf, are eligible for freehold conversion, as reported by the state-run Wam news agency.
• Property owners can use the Dubai Rest smart app to confirm eligibility and are required to pay a 30% conversion fee based on property valuation.
• The Dubai real estate strategy 2033 plans to increase transactions by 70%, aiming to raise the market value to AED1 trillion and expand the value of portfolios to AED20 billion.

Dubai continues to strengthen its position as a global real estate hub with its recent initiative to expand freehold areas. This strategic move allows property owners along Sheikh Zayed Road and Al Jaddaf to convert their properties to freehold status, which is available to all nationalities. This blog post delves into the details of this initiative, its implications for the real estate market, and the wider economic impact.

Driving Growth in Dubai’s Real Estate Sector

Dubai’s decision to allow freehold conversions is a calculated effort to invigorate its real estate market. As Marwan Bin Ghalita, director-general of the Dubai Land Department (DLD), asserted, this initiative is set to spur significant growth by enhancing the market’s attractiveness and fostering long-term investments. By opening more areas to freehold ownership, Dubai is not only broadening its investment appeal but also ensuring sustained economic momentum in the region.

Key Areas for Freehold Conversion

According to the state-run Wam news agency, a total of 457 plots are now eligible for freehold conversion. These plots include:

• 128 plots on Sheikh Zayed Road: A major artery in Dubai, home to some of the best real estate investment opportunities in the city.
• 329 plots in Al Jaddaf: An area with growing potential, especially with infrastructural developments.

The Process of Freehold Conversion

For property owners, the freehold conversion process is made conveniently accessible via the Dubai Rest smart app. This application allows owners to verify their eligibility and manage the necessary steps for conversion. Here’s how the process unfolds:

1. Eligibility Check: Property owners should first confirm their eligibility through the app.
2. Valuation and Fee: A conversion fee of 30% of the property’s valuation based on the gross floor area is required.
3. Submission and Approval: Upon completion of these steps, submissions are made through the app for DLD approval.

Strategic Objectives of Dubai Real Estate Strategy 2033

The freehold conversion initiative aligns with Dubai’s broader real estate strategy aimed at achieving substantial growth by 2033. The strategy outlines ambitious targets such as:

• A 70% Increase in Transactions: This aims to significantly enhance the liquidity and dynamism of Dubai’s property market.
• Reaching AED 1 Trillion in Market Value: A testament to Dubai’s commitment to becoming a leading global property market.
• Expansion of Real Estate Portfolios to AED 20 billion: This further cements Dubai’s status as a top global market for real estate investment.

Impact and Benefits of the Initiative

Transforming property ownership models in these prime areas unlocks a plethora of benefits for investors and the economy alike:

• Increased Investment Opportunities: By allowing foreigners to own property outright, Dubai attracts a greater pool of international investors.
• Market Stability and Growth: The freehold model promotes stability as property owners are incentivized to invest long-term.
• Economic Boost: Enhanced real estate activity leads to job creation, infrastructure development, and overall economic growth.

A Visionary Step Forward

Dubai’s move to expand freehold zones underscores its forward-thinking approach to economic development and real estate innovation. By creating an environment conducive to global investments, Dubai not only solidifies its real estate market but also paves the way for broad economic advancements. As investors seize these new opportunities, the future of Dubai’s real estate looks exceptionally promising.