Dubai has announced a landmark decision to allow owners of properties along Sheikh Zayed Road and in the Al Jaddaf area to switch their ownership to freehold. The dizzying decision was termed revolutionary for the city’s realty domain and enhanced its resilience and potential for growth by Firas Al Msaddi, CEO of fäm Properties.  

dubai’s new freehold move

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“Definitely, this bold new initiative is a win-win for every stakeholder- investors, developers, and the entire Dubai real estate market,” Al Msaddi said. “It will attract a much larger pool of investors and provide the market with long-term resilience and growth.”  

According to the Dubai Land Department (DLD), 457 plots can be converted to freehold ownership. These include 128 on Sheikh Zayed Road, stretching from the Trade Centre roundabout to the Dubai Canal, and 329 plots in Al Jaddaf.  

Prime Real Estate Hot Spots  

Sheikh Zayed Road and Al Jaddaf now represent two real estate hot spots, according to Al Msaddi, who remarked that freehold ownership for all nationalities is a big plus in spurring investor confidence and overall market sentiment.  

“Al Jaddaf’s strategic location being bestowed freehold status is bound to result in a lot of commercial activity and rising property prices,” he said. Al Msaddi has stressed that Al Jaddaf fills a distinct supply gap whereby medium-sized residential and commercial plots are rare in the prime areas of Dubai.  

“The medium-sized commercial plots available are quite attractive for end-users, like companies looking to build their headquarters or single-tenant buildings,” he said. 

Al Msaddi anticipates an increase in market vibrancy with the freehold status on Sheikh Zayed Road. This area is already gaining tract with the launch of numerous new towers; “The freehold status means opportunities for plots are now open to global markets, turning this stretch into an intensely competitive and attractive investment destination,” he said.  

Opportunities and Challenges  

While it opens new opportunities, Al Msaddi preferred to warn that the relatively high fees paid for converting plots into freehold status will impact market activities in the short term.  

“Most sellers will go ahead and test the waters with higher asking prices. If they end up asking prices above what makes sense commercially for development, then the transactions might slow down,” he explained. Further, he is optimistic that the market will eventually reach self-regulation that sets price benchmarks based on demand.  

Al Msaddi emphasized that strong demand from developers launching off-plan projects drives the price of plots in Dubai, under current conditions. This implies that plots are primarily viable for developers who plan off-plan sales, as the commercial viability of ongoing developments for leasing purposes is often a challenge.  

Global Investment Destination  

The freehold conversion initiative is a clear reflection of Dubai’s commitment to innovation and inclusivity in the arena of real estate. Also, Al Msaddi said this is bound to give leash to several opportunities for developers and even individual investors. “It also ensures that both Sheikh Zayed Road and Al Jaddaf are operated on the more dynamic and global fundamentals of the marketplace.”  

“That’s further proof that Dubai has truly cemented its role as a global leader in real estate, continuing to provide a conducive investment environment,” Al Msaddi concluded.