The Dubai Land Department (DLD) has announced an important announcement for private property owners along Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal) and in the area of Al Jaddaf that currently owing property titles over their grounds can now be converted into freehold ownerdhip. The decision of freehold ownership applies to all nationalities and covers a total of 457 plots-128 along Sheikh Zayed Road and 329 in Al Jaddaf.
Procedures to Convert Ownership to Freehold Ownership
Successful steps for owners willing to convert their title ownership on properties would include the following:
- Confirm Eligibility: With the “Dubai REST” app, eligibility for conversion should be verified.
- Application Entry: File an application with the Dubai Land Department for land evaluation and valuation.
- Pay Applicable Charges: After the Real Estate Regulatory Authority (RERA) determines common area fees and service charges, applicable to this conversion will be a conversion fee of 30 percent of the property’s valuation against Gross Floor Area.
- Receive Ownership Title: Upon payment, a map and freehold title deed will be issued for the converted property.
Advantages for Property Owners
This is a plan to increase perhaps market value in properties located in Sheikh Zayed Road or in Al Jaddaf by owners whose titles have converted into freehold. This is to be made encouraging for both local and foreign investors as they can have absolute ownership rights over the property.
Impact on the Real Estate Sector of Freehold Ownership
This program is in accordance with the Dubai Real Estate Strategy 2033 and enhances the city’s readiness for a global economic centre, stressed Eng. Marwan Ahmed bin Ghalita, DLD’s Director General. He said that freehold ownership would bring a lot of growth in the real estate market as well as long-term investments.
Freehold and Leasehold
- Leasehold: Term for which property rights are attached to it but not the land (up to 99 years) and major modifications must be obtained from the freeholder.
- Freehold: It gives absolute ownership of the property as well as that of the land, which makes it to the owners to sell, lease, or use it any way they wish.
The amount of cost for low leasehold properties is less in total than the initial cost for freehold ownership but gives greater flexibility and long-term value. Dubai’s smart rental index and others while emphasizing on this emirate’s strong, transparent real estates market follow the last development.
