The decision by Dubai Land Department (DLD) to permit freehold ownership along Sheikh Zayed Road and in Al Jaddaf has sparked optimism among real estate experts. The move is expected to drive significant demand from both investors and residents seeking opportunities in these key districts.
Industry professionals predict that commercial properties could see the most immediate impact due to the current limited supply of quality office spaces in Dubai.
This change, announced on Sunday, covers private property owners from the Trade Centre Roundabout to the Water Canal on Sheikh Zayed Road, along with the Al Jaddaf area. It includes 457 eligible plots - 128 on Sheikh Zayed Road and 329 in Al Jaddaf - that can now transition to freehold status. A fee equivalent to 30% of the property’s valuation will apply, and owners will receive updated title deeds once payments are completed.
Residential and Commercial Benefits
Ayman Youssef, managing director of Coldwell Banker, pointed out that freehold ownership simplifies transactions for property owners, especially those managing large-scale developments. He noted that the policy framework, including the 30% fee, adds clarity to the process, encouraging broader participation from stakeholders. He estimates this initiative could generate around AED 500 million in revenue for Dubai.
Both residential and commercial property owners stand to gain. Residential owners may find it easier to secure mortgages, enhancing financial flexibility and property values. On the commercial side, the availability of freehold office spaces could meet the growing demand from investors seeking high-yield assets in premium locations.
Sheikh Zayed Road is already a well-established area offering proximity to malls, tourist attractions, healthcare facilities, and dining destinations, making it a prime choice for investors. Al Jaddaf, on the other hand, is positioned for further growth, particularly with its emphasis on commercial development, according to Youssef.
As these developments unfold, Sheikh Zayed Road and Al Jaddaf are poised to become focal points for residential and commercial opportunities, aligning with Dubai’s vision for sustained growth in its property market.
Original article reference: Khaleej Times.
