Dubai’s Freehold Policy to Enhance Property Values, Say Developers

REM TIMES speaks to developers on the transformational impact of Dubai’s new freehold policy on the real estate market

Dubai’s new policy allowing property owners along Sheikh Zayed Road and in Al Jaddaf to convert their holdings to freehold is poised to transform the city’s real estate landscape. The initiative, opening 457 plots to all nationalities, promises to significantly boost property values and attract global investors and reshape key parts of the city, making them more accessible to both local and international buyers, fostering a stronger and more competitive market environment. It is likely to add momentum to Dubai's continuous efforts to position itself as one of the world's leading real estate markets.

Alois Kugendran, CEO of Amaya & Co Real Estate, highlights the potential of the policy, stating, “The move opens up 457 plots—128 on Sheikh Zayed Road and 329 in Al Jaddaf—for all nationalities to purchase outright, a step that is likely to boost investor confidence and drive demand in these prime locations. While the change is expected to enhance property values and attract global interest, the 30% conversion fee, based on valuation, could influence pricing strategies and transaction volumes.” This shift is expected to increase property values and generate strong interest in these key areas. Investors are likely to respond to this newfound opportunity with enthusiasm, recognizing the promise of high returns on secure, freehold assets.

 While the change is expected to enhance property values and attract global interest, the 30% conversion fee, based on valuation, could influence pricing strategies and transaction volumes.

Alois Kugendran, CEO of Amaya & Co Real Estate

Arash Jalili, CEO and Founder of Unique Properties, explains, “Transitioning to freehold ownership significantly boosts a property’s market appeal and value. Unlike leasehold, freehold offers complete ownership without time constraints, ensuring long-term security and higher returns.” This increased security is a major attraction for international buyers, especially in a market known for its stability, he points out. “By extending ownership rights to all nationalities, this initiative positions Sheikh Zayed Road and Al Jaddaf as hotspots for international investors. Expatriates and global buyers, in particular, are drawn to the opportunity for long-term, secure investments in Dubai’s dynamic real estate market.” Such changes are bound to fuel a steady influx of international capital into the market, leading to higher demand and higher prices.

The policy also offers unparalleled flexibility thereby allowing owners to capitalize on the full potential of their properties. “Freehold ownership empowers property owners with full control over their assets. Owners can freely sell, lease, or transfer ownership without the constraints typical of leasehold agreements. This flexibility fosters independent decision-making and maximises investment potential,” explains Jalili. This level of control further elevates the desirability of freehold properties, making them an attractive investment choice for both experienced and new investors alike.

By extending ownership rights to all nationalities, this initiative positions Sheikh Zayed Road and Al Jaddaf as hotspots for international investors. Expatriates and global buyers, in particular, are drawn to the opportunity for long-term, secure investments in Dubai’s dynamic real estate market.

Arash Jalili, CEO and Founder of Unique Properties 

Aligning with Dubai’s goals of becoming a leading global real estate hub, this policy offers a major step toward fulfilling those aspirations. “This initiative aligns with Dubai’s Real Estate Strategy 2033, which aims to elevate the sector to AED 1 trillion in value. By encouraging freehold conversions, the initiative drives sustained economic growth, increases transaction volumes, and reinforces Dubai’s position as a global real estate hub,” says Jalili. The policy is set to strengthen Dubai's standing on the world stage, as it creates greater investment opportunities and attracts both local and international players to the market.

Kugendran concludes, “This policy shift marks another milestone in Dubai’s dynamic property sector, ensuring long-term growth and expanding opportunities for investors and residents alike.” The move is bound to yield long-lasting benefits, not only for the real estate market but also for the broader economy, creating a ripple effect that will drive innovation and development across various sectors. With enhanced investment opportunities and a more accessible market, Dubai is cementing its position as one of the most attractive destinations for real estate investment globally. This bold step is only going to make Dubai even more appealing to both local and international investors, offering a promising outlook for the future of the emirate's property market.

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