The Dubai Land Department (DLD) has announced an opportunity for private property owners in the Sheikh Zayed Road area (from the Trade Center roundabout to the Water Canal) and Al Jaddaf to convert the ownership of their plots to freehold. This offer is open to all nationalities and covers 457 plots: 128 along Sheikh Zayed Road and 329 in the Al Jaddaf area.

Previously, buying property in Dubai in these zones was only available under leasehold. This meant the property owner held rights to the property for a specified term (up to 99 years) but did not own the land on which it stood. Additionally, any modifications to the property, such as renovations or restructuring, required approval from the landlord and could only be undertaken with their consent.

In contrast, under freehold, the owner has complete ownership of both the property and the land on which it is built, with the right to sell, rent, or use the property at their discretion.

Contents:

  1. Ownership Conversion Process
  2. Background
  3. Will there be an expansion of freehold zones in the future?

Ownership Conversion Process

Owners can verify their eligibility for the program through the Dubai REST application. If eligible, they must apply to DLD for an assessment and determination of the plot’s value.

A conversion fee of 30% of the assessed property value (based on the building’s total area) is then charged, and once the payment is processed, a freehold ownership certificate is issued.

Background

The main reason for converting the Sheikh Zayed Road and Al Jaddaf areas to freehold status is the strategic development of these zones to attract investment. Sheikh Zayed Road is a key transportation artery with high commercial activity, while Al Jaddaf is undergoing extensive residential and commercial construction.

Given the shift in focus from popular areas like Dubai Marina to less developed yet promising zones, converting to freehold is an excellent strategy for attracting investments.

Will there be an expansion of freehold zones in the future?

The law allowing foreigners to acquire full property ownership in designated freehold zones was introduced in 2002. Over time, the number of such zones has gradually increased—initially through the development of new areas and later by converting other leasehold zones into freehold.

Dubai will likely continue expanding the list of freehold zones. Here’s why:

  1. Dubai 2033 Goals. Achieving the plan’s targets is difficult through construction alone, but more feasible by converting other zones to freehold.
  2. Regional Competition. Dubai faces competition not only from major UAE cities like Abu Dhabi but also from neighboring countries. Real estate in Saudi Arabia and Qatar is increasingly appealing to investors. Expanding the market helps Dubai maintain demand among foreign investors.

In the next 5–10 years, other areas are likely to gain freehold status. Some potential candidates include: Deira; Al Qusais; Ras Al Khor and other zones along Dubai Creek.