Dubai Land Department’s newest announcement promises to reshape the city’s investment landscape in prime locations.
The Dubai Land Department’s recent declaration is set to change the city’s real estate landscape. Private property owners in the Al Jaddaf and Sheikh Zayed Road areas can now convert their properties to freehold ownership. This declaration applies to all, regardless of nationality. There are 457 plots (i.e., 128 plots along Sheikh Zayed Road and 329 plots in Al Jaddaf).
Property owners can verify their eligibility via the Dubai REST smart app. A property owner must submit an application to the DLD for land assessment and valuation and pay a conversion fee (i.e., 30% of the property’s valuation, based on Gross Floor Area).
The declaration will significantly increase the market value of these properties. The initiative will provide a fillip to Dubai’s real estate market. In 2024, Dubai’s realty market witnessed a 30.1% YoY increase in value and a 37.9% increase in transaction volume compared to 2023. Also, Dubai’s median price per square foot has been steadily rising, reaching AED 1,511 in Q3 2024, up from AED 1,405 in 2023.
The landmark declaration will attract strong buyer demand. Typically, freehold properties command higher resale values than leasehold assets, as they offer perpetual ownership rights that are more attractive to buyers and investors. This enhances investment appeal, leading to-
- market stability and growth
- stabilizing prices in the long run
This initiative is in sync with Dubai’s ambitious Real Estate Strategy 2033, which aims to do the following –
- boost real estate transactions by 70%
- the total value of Dubai’s real estate market to AED1 trillion
- expand the value of Dubai’s real estate portfolios to AED20 billion.
As Dubai bolsters its position as a global realty hub, this freehold conversion initiative is a significant step in attracting foreign investment and promoting long-standing growth.
