Overview

Recent updates from the Dubai Land Department (“DLD”) have introduced significant changes to property ownership rights in Dubai. Certain areas previously designated as “non-freehold” – the ownership of which was exclusively available for UAE and GCC nationals – have now been converted to “freehold” zones, allowing foreign investors to acquire properties in such areas.

Why this matters

The shift from “non-freehold” to “freehold” status provides new investments opportunities for families and investors of all nationalities. As the demand for purchase of non-freehold areas has significantly increased during the past years, the DLD’s recent updates are highly welcome by global investors and the local real estate industry which is benefiting from the international investment boost.

What’s new

Conversion to “freehold”

• The DLD has announced that private property owners on Sheikh Zayed Road (from Trade Centre Roundabout to the Water Canal) and Al Jaddaf may convert their ownership status from “non-freehold” to “freehold”, making these areas open to all nationalities to own.
• A total of 457 plots (128 on Sheikh Zayed Road and 329 in Al Jaddaf) are eligible for conversion.

Process and fees

• Property owners can verify their eligibility through the Dubai REST smart app.
• After applying and completing a valuation process, a one-time conversion fee of 30% of the property’s market value applies.
• Once the fee is paid, the property will be officially converted to “freehold”, and a new ownership title deed will be issued.

Strategic impact

• The shift to “freehold” status is expected to increase the market value of these properties, encourage new real estate developments, and attract a diverse range of investors.
• This initiative is in line with Dubai’s Real Estate Strategy 2033, which aims to increase real estate transactions by 70%, grow the market to AED 1 trillion, and strengthen Dubai’s position as a global economic hub.

What we say

The DLD recent updates reinforces Dubai’s status as a global real estate hub, creating new investment and wealth planning prospects.

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