Recent changes by the Dubai Land Department (DLD) are shaking up the real estate scene, and the effects are already being felt across the market. According to a recent article published by Arabian Business, Dubai’s decision to allow freehold conversions in areas like Sheikh Zayed Road and Al Jaddaf has opened the doors to a new era of investment, collaboration, and rising property values. The new freehold rules are expected to drive increased demand for property for sale in Dubai, attracting both local and international investors.
Unlocking New Potential Through Freehold Ownership
Historically, certain prime areas in Dubai operated under leasehold terms, which limited long-term ownership opportunities. Now, with the DLD permitting private property owners in these high-demand zones to convert their assets into freehold, the game has changed. This shift is empowering local owners and attracting a new wave of international interest, with buyers eager to own a piece of Dubai without time-bound restrictions.
A Surge in Joint Ventures and Development Projects
One of the most immediate ripple effects of this rule change has been the rise of joint ventures between property owners and developers. With landowners now holding assets that can be developed under freehold terms, many are forming strategic partnerships to launch off-plan projects in Dubai. This provides opportunities to both developers and owners in these newly accessible areas.
Soaring Property Values: A Boon for Investors
The newly granted freehold status isn’t just a legal upgrade—it’s a value multiplier. Experts estimate that property values in Sheikh Zayed Road and Al Jaddaf could rise between 30% to 50%, driven by heightened demand and the appeal of full ownership rights. For investors, this represents a golden window to enter—or expand within—the Dubai market at a time of robust, sustainable growth.
An Opportunity for Global Buyers
With no lease limitations and increased security of tenure, freehold properties have long been the preferred choice for international buyers. These regulatory adjustments are expected to further globalise Dubai’s investor base, making it easier for foreigners to invest with confidence and for developers to market projects to a broader audience.
These regulatory changes are further strengthening the appeal of luxury property in Dubai, with more prime locations becoming available to foreign buyers.
What Should Property Owners Consider?
While the benefits are clear, converting a property to freehold does come with a cost. The DLD has set the conversion fee at 30% of the property’s gross floor area valuation. For some owners, this could be a barrier—however, the long-term gains may far outweigh the initial outlay. Developers and policymakers could help encourage adoption by offering payment flexibility or incentives to streamline the transition.
Final Thoughts
Dubai’s move to open up more areas for freehold ownership is more than just a regulatory update—it’s a strategic step toward reinforcing the city’s status as a world-class real estate destination. The ripple effects are being felt across development, pricing, and investor sentiment. For anyone looking to capitalise on the market’s upward momentum, now is the time to take notice. Connect with our experts today to make the most of this thriving market!
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