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Dubai Now Allows Conversion to Freehold Ownership for Properties on Sheikh Zayed Road and Al Jaddaf

Dubai’s ultra-luxury real estate market continues to captivate global investors, cementing its reputation as a hub for exclusive living experiences. Among the key players, OMNIYAT Properties has emerged as a dominant force, achieving remarkable sales milestones across iconic locations such as Palm Jumeirah, Business Bay, and Downtown Dubai.

Key Highlights of the Initiative

  • Eligibility and Scope
    A total of 457 plots can be converted into freehold ownership under this program, with 128 plots along Sheikh Zayed Road and 329 in Al Jaddaf.
    The permission is open to all nationalities, marking a step toward further inclusivity in Dubai’s property market.
  • Enhanced Ownership Benefits
    Freehold ownership provides absolute ownership of both the property and the land it stands on. Owners can sell, lease, or occupy the property at their discretion without the limitations typically associated with leasehold ownership, where land rights remain separate.

Steps to Convert Ownership

  • Verify Eligibility
    Property owners should begin by verifying their eligibility through the Dubai REST app, a smart platform designed for seamless property management.
  • Submit an Application
    Eligible owners must apply to the Dubai Land Department for land evaluation and valuation.
  • Determine Fees
    A 30% conversion fee, based on the property’s Gross Floor Area valuation, will be applicable. Common area fees and service charges will also be determined in line with the guidelines set by the Real Estate Regulatory Authority (RERA).
  • Process Payment and Obtain Title Deed
    After payment, a freehold ownership title deed and property map will be issued to the owner, signifying the completion of the conversion process.

Benefits for Landowners and the Real Estate Sector

This initiative is expected to significantly enhance the market value of eligible properties, particularly for those converting to freehold ownership. By empowering property owners in these prime locations, Dubai continues to solidify its position as a global economic hub and a premier destination for real estate investment.

Director General of the DLD, Eng. Marwan Ahmed bin Ghalita, emphasized that the move aligns with Dubai’s Real Estate Strategy 2033, driving growth in the sector and boosting investor confidence.

Comparing Freehold and Leasehold Ownership

Understanding the difference between leasehold and freehold ownership is crucial:

  • Leasehold: Ownership is limited to a fixed term, usually up to 99 years, and does not include the land. Usage is subject to restrictions imposed by the freehold owner.
  • Freehold: Offers absolute ownership of both the property and the land, with no restrictions on its use, sale, or leasing.

While leasehold properties may have a lower upfront cost, freehold properties offer greater flexibility and long-term value.

Real Estate Sector Innovation

This freehold initiative follows Dubai’s unveiling of a smart rental index, which provides transparency in rental markets through features like star ratings for buildings and average rent data. By introducing tools and policies that empower property owners and tenants, Dubai continues to elevate its real estate landscape.

With programs like these, Dubai reaffirms its commitment to fostering innovation, sustainability, and growth within its property market, paving the way for an even more dynamic future.

Conclusion

Converting leasehold properties to freehold ownership in Sheikh Zayed Road and Al Jaddaf offers property owners an unparalleled opportunity to maximize the value of their investments. As Dubai strengthens its position as a real estate powerhouse, initiatives like this ensure that its property market remains competitive and investor-friendly.