The permission to convert the form of ownership is available to all nationalities. A total of 457 plots are eligible for conversion to freehold: 128 plots along Sheikh Zayed Road and 329 plots in Al Jaddaf.
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Steps to convert ownership
Owners of lands included in the transfer can first verify their ability to benefit from it through the app“Dubai REST”, as the transfer requires submitting an application to the Dubai Land Department to evaluate and value the land.
Once common area fees and service charges are determined according to Real Estate Regulatory Authority guidelines, a conversion fee of 30 per cent of the property's valuation (based on Gross Floor Area) will be applicable.
Once payment is processed, a map and freehold ownership title deed will be issued for the converted property.
Real estate sector growth
The initiative is set to benefit landowners in these areas by enhancing the market value of their properties, particularly for those opting to convert their land to freehold ownership.
Enabling private property owners in the designated areas in Sheikh Zayed Road area and Al Jaddaf to convert their properties to freehold ownership will drive significant growth in Dubai's real estate sector, Eng. Marwan Ahmed bin Ghalita, Director General of DLD, said.
The move also reinforces Dubai's position as a global economic hub and a leading destination for real estate investment, in line with Dubai's Real Estate Strategy 2033.
Earlier, Dubai unveiled a smart rental index that includes average rent of buildings and areas, star rating system, and data of buildings such as the quality of maintenance, parking management etc.
If the building has a higher rating, rents will go up. Landlords of older buildings can also increase rent if they get a high rating upon renovation and upgrades done on the residence.
The new index covers all residential areas across the emirate including districts, special development zones and free zones.
Difference between leasehold and freehold
The term leasehold means you will own the property rights for a fixed term, which is a maximum of 99 years. However, you will not own the property's land.
With freehold ownership , you have absolute ownership of the property and the land it's built on. The property can then be sold, leased or occupied at the owner's wishes.
While the initial cost of purchasing a leasehold property may be lower than the freehold, there are limitations on what you can do with the leasehold property, subject to written approval from the freehold owner.