Freehold shift is ‘Pivotal Step’ for Dubai Real Estate
Dubai’s decision to let property owners in the Sheikh Zayed Road and Al Jaddaf areas convert their ownership status to freehold is a pivotal step for the city’s real estate sector, says Firas Al Msaddi, CEO of fäm Properties.
“This bold new initiative is a win for all stakeholders – investors, developers, and Dubai’s real estate market as a whole,” said Al Msaddi. “It will not only attract a larger pool of investors, but also enhance the long-term resilience and growth of the market.”
“Both Al Jaddaf and Sheikh Zayed Road are now positioned as prime real estate hotspots. Granting freehold ownership to all nationalities in prestigious areas like these will boost market sentiment and investor confidence.”
Dubai Land Department (DLD) announced on Sunday that 457 plots are eligible for conversion to freehold – 128 on Sheikh Zayed Road, from the Trade Centre roundabout to the Dubai Canal, and 329 plots in Al Jaddaf.
Al Msaddi said the move shows the DLD’s commitment to creating new opportunities for investors and developers, and underlines the city’s status as a global leader in real estate innovation, with a thriving and inclusive investment environment.
He believes the implications for Al Jaddaf are profound. “This strategic location, now with freehold status, will undoubtedly see a surge in commercial activities and a rise in property prices,” he said. “Al Jaddaf uniquely fills a critical supply gap, offering residential and commercial plots that are rare in Dubai’s prime areas.
“For commercial plots, the medium sizes available are especially attractive to end-users -companies that aim to build their own headquarters or single-tenant buildings.
“This flexibility is scarce, as most commercial plots in Dubai are designated for high-rise developments. Al Jaddaf’s plot offerings are, therefore, highly appealing to both investors and businesses.”
However, Al Msaddi says that the relatively high fees for converting plots into freehold status must be taken into account, as sellers will likely test the market with higher asking prices.
“If these prices surpass what is commercially feasible for development, transactions may slow,” he says. “Over time, the market will self-regulate, and new price benchmarks will emerge based on what buyers are willing to pay.
“Dubai’s plot prices are already elevated, driven by strong demand from developers launching off-plan projects. Under current market conditions, plots are typically only viable for developers planning off-plan sales, as developing for leasing purposes often doesn’t make commercial sense at today’s prices.”
For Sheikh Zayed Road, Al Msaddi says the shift to freehold will boost the momentum already created by the launch of several new towers, injecting dynamism into the market and significantly increasing the liquidity of plots in this iconic area.
“Previously, plots on Sheikh Zayed Road were primarily developed for lease, which limited their appeal and market flexibility,” he said. “Now, with freehold ownership, these plots are open to a global audience, transforming this stretch into a highly competitive and attractive investment destination.
“The freehold announcement will unlock new opportunities for both developers and individual investors, ensuring the area operates on more dynamic and global fundamentals.”
Last Updated on 7 hours by News Desk 1
