Dubai Allows Property Owners On Sheikh Zayad Road And Jaddaf To Convert To Freehold
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The Dubai Land Department said that 457 properties are eligible for freehold conversion, including 128 on Sheikh Zayed Road beginning at the World Trade Centre roundabout to the Dubai Canal and 329 in Al Jaddaf. During freehold ownership, an outsider directly owns the structure and the piece of property on which it is built.
The Dubai Land Department (DLD) announced that private property owners in the Sheikh Zayed Road area (from the Trade Centre Roundabout to the Water Canal) and Al Jaddaf neighborhood can now transfer their ownership status to freehold for any nationality.
The effort is expected to help landowners in these areas by increasing the market value of their properties, particularly those who choose to convert to freehold ownership,” the agency stated.
Dubai’s New Policy On Freehold Ownership Sheikh Zayed Road And Al Jaddaf
Marwan Ahmed bin Khalifa, Director-General of DLD, stated that allowing private property owners in specific locations along Sheikh Zayed Road and Al Jaddaf to switch their properties to freehold ownership will result in considerable growth in Dubai’s real estate sector. The move also strengthens Dubai’s position as a worldwide economic hub and a top real estate investment destination, as outlined in Dubai’s Real Estate Strategy 2033.
He noted that the effort allows owners to benefit from price increases, making the Dubai real estate market more appealing and attracting long-term investors. He stated that the Dubai Land Department remains dedicated to providing all services required to enable this transition.
The Dubai REST smart app allows property owners to validate their eligibility for conversion. To move forward with the conversion, they must file an application with the DLD for land survey and valuation. Real Estate Regulatory Authority standards will decide practical area fees and service charges. After this, a cost for conversion of 30% of the property’s valuation (based on Gross Floor Area) will apply. After payment, an aerial photograph and freehold ownership document for the turned property will be provided.
The Dubai Real Estate Strategy 2033 aims to achieve its lofty goals through several key performance metrics, which include increasing transactions in real estate by 70%, raising the total value of Dubai’s real estate market to AED1 trillion, and increasing the value of Dubai’s real estate portfolios to AED20 billion.
Impact On Dubai’s Real Estate Market
The project is intended to help landowners in certain areas by increasing the monetary value of their attributes, particularly those who choose to transfer their real estate to freehold ownership.
Allowing private property owners in certain regions along Sheikh Zayed Road and Al Jaddaf to change their properties to freehold ownership will promote tremendous growth in Dubai’s real estate market. The move also strengthens Dubai’s position as a worldwide economic hub and a top real estate investment destination, as outlined in Dubai’s Real Estate Strategy 2033.
Earlier, Dubai introduced an innovative rental index comprising typical building and area rents, a star grading system, and building data such as maintenance quality, parking management, etc.
- Rents will rise when the building's rating improves. Landlords of older properties can also raise rents if they receive a high rating after renovating and upgrading the property.
- The new index applies to all residential areas in the emirate, including communities, special development zones, and free zones.
Benefits Of Converting To Freehold Property In Dubai
Complete Ownership
By purchasing a freehold property, you become the sole owner; whether it is a house or a business unit, you have entire authority over your property. You will be the only owner of your property after purchasing freehold property in Dubai. Your rights are protected, and no one may interfere with your property. If you have a partner, you are now legally the property owner. If you possess a villa or a 1-2 story building, you also own the land where the property is built. Enjoy owning the property as the lone entity with rights to it.
Control
As a single owner, freehold property in Dubai gives you complete control over your property because you are the lawful owner. The person who owns the property exercises complete authority over such property. This allows you to remodel and renovate the property as you see fit.
No other person has the power to stop you from modifying your property if you are not breaching any laws. As the sole owner, you can select who may and cannot enter your property. Allowance, customization, and other considerations are all aspects of ‘control’ over the assets you own.
Inheritance
If you own a rented home, you cannot transfer the title to your son or daughter even if you have already paid the full price. Owning freehold property allows you to share property with your son or daughter and others.
Furthermore, possessing a freehold property allows you to give away your property according to your wishes by executing a will paper. This permits you to distribute your possessions among your children or other concerned parties. If the next generation can own property, freehold property in Dubai will enable them to do so.
Flexibility
Having a freehold property does not tie you to any terms and restrictions the developer or a third party imposes. As the legitimate owner, you can do whatever you want in your territory, but this does not grant you the right to disregard law and order.
You have control over your ownership term, rights as an owner, and land ownership; these characteristics are essential when purchasing property since they protect you against developer fraud. After owning the property, there is no need for a lease agreement with any third party.
Visa Advantage
If you are an outsider in Dubai, you can stay with a residential, educational, or work visa. A resident visa is the only type of visa that allows you to stay in Dubai for an extended period. To extend a residential visa, you must own a freehold home, which allows you and your loved ones to stay in Dubai.
For example, if you have moved to Dubai with your family, you may be eligible for permanent citizenship just by acquiring a house in Dubai, making you a rightful owner. This is a significant advantage if you intend to reside permanently in Dubai.
Tax-free environment.
The entire globe understands how Dubai’s tax system works. This is a significant benefit you will gain by investing in Dubai. You only pay the bare minimum in taxes on your home and accommodations. No taxes are levied on freehold property.
This advantage enables consumers and investors to save significantly on their investments. You may put your money to better use for yourself and your property without taxes. There are numerous opportunities to invest more in Dubai. This tax-free environment enables manufacturers to work more efficiently.
Property Appreciation
Freehold property in Dubai yields 10-12% returns. Investing in freehold property ensures an investment for anyone because the worth of these properties rises. In Dubai, the value of a held property is increased because it allows the owner to receive higher returns on the entire property value.
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