A New Era Of Freehold Ownership In Dubai

1/30/2025 2:40:43 PM

(MENAFN- Khaleej Times) Dubai's recent decision to open 457 plots in prime locations for freehold ownership signals to global investors that inclusivity and accessibility are top priorities on the city's agenda. This move - covering areas such as sheikh Zayed Road (128 plots) and Al Jaddaf (329 plots) - is a welcome step and will undoubtedly add to the growth of the sector. By offering new opportunities, the emirate establishes its role as a global investment hub, one where buyers represent over 200 nationalities.

The changes introduced reflect forward-thinking governance. Now that people from all backgrounds can participate in the market - even in these central locations - barriers have been lowered, opening the doors to more diverse forms of capital flows. These measures seamlessly align with initiatives like the Dubai Real Estate Strategy 2033, which targets a 70 per cent increase in transaction volumes and a market valuation of Dh1 trillion.

The economic implications are significant. Freehold ownership turns investors into long-term stakeholders, resulting in greater engagement. Beyond transactional value, its multiplier effects are clear in job creation, infrastructure development, and increased demand for services across retail and hospitality - all critical to the UAE's Vision 2031 objectives. The strategic location of these plots is another factor. The Sheikh Zayed Road connects all seven emirates and runs through the heart of the city, linking major business districts with lifestyle hubs. Meanwhile, Al Jaddaf is growing into a dynamic area that balances deeply rooted traditions and modern living.

Farhad Azizi

The high transfer fees for converting properties to freehold - 30 per cent of the appraisal value - may initially deter some property owners. Understandably, this upfront cost may seem daunting. However, the benefits become apparent when you look beyond the initial expense. Full ownership ensures that buyers benefit from asset appreciation and better legal protections. As Dubai continues to attract more interest and maintains its investor-friendly policies, it's likely that many will see this conversion as a worthwhile venture.

This is mostly because as the population of the emirate increases, so does the need for housing and real estate investment opportunities. The city's heightened focus on the sector has been reflected in prices, which rose 19.46 per cent year-on-year as of November 2024. Expanding freehold areas is a crucial step in meeting this demand. Another important measure is considering global trends in urban development. Currently, there's a growing emphasis on environmental, social, and governance (ESG) principles, which means we can expect future projects to prioritise green spaces and energy-efficient systems. The newly designated areas are well-positioned to embrace this movement. Signature projects like Burj Azizi, the world's second-tallest tower and the only originally freehold property on the Sheikh Zayed Road, serve as a key example of the potential unlocked. Government initiatives such as the Dubai 2040 Urban Master Plan also play an important role as they steer the long-term vision: Sustainable growth and upgraded urban spaces.

Overall, these policy shifts cement Dubai's position within the international property arena and support its goal of becoming one of the top 3 cities to invest, live and work in. By ensuring that investors have access to some of the most central locations, the emirate demonstrates its commitment to this goal, backed by new regulatory policies and projects that continue to push boundaries city continues to draw in foreign capital because of its unique mix of luxury, innovation, and endless opportunities.

(Farhad Azizi is Group CEO of the Azizi group of companies)

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