How Dubai's New Freehold Policy Will Shape the Future of Real Estate

Ali Muslam Bu Mansour, Managing Director at Object 1, highlights how Dubai's new policy allowing freehold ownership along Sheikh Zayed Road and Al Jaddaf will enhance investment opportunities

Dubai has solidified its position as a global real estate hub with a game-changing announcement. The Dubai Land Department's new policy, which allows properties along Sheikh Zayed Road and Al Jaddaf to be converted to freehold ownership. As developers, we are always on the lookout for the most promising locations to ensure that our projects deliver the best possible outcome for investors. Therefore, the recent announcement by the Dubai Land Department regarding the ability to convert properties along Sheikh Zayed Road and Al Jaddaf to freehold ownership is of great significance. It unlocks a new realm of possibilities for both investors and property owners, improving investment potential and property value growth. 
This initiative not only enhances market dynamics but also plays an important role in allowing developers to contribute to the city’s continued prosperity. 

Market Growth and Projections
Dubai's real estate sector has seen significant growth in recent years, primarily driven by the progressive initiatives being introduced in the region. For instance, the Dubai Real Estate Sector Strategy 2033 is designed to strategically amplify the industry's influence by significantly boosting transaction volumes and positioning Dubai as a top-tier global destination for international investors. As a result, the overall number of real estate transactions hit a historic peak in 2024 with a remarkable value of AED 522.1 billion. This incredible growth is a direct result of high demand outpacing supply, leading to significant price increases.

The transformative policies implemented by the government are expected to further propel the market, with a projected 5% increase in real estate values. This positive trajectory presents lucrative opportunities for property owners, investors, and developers alike. Moreover, it aligns with Dubai's ambitious vision of solidifying its status as a premier global destination for real estate investment.

A Bold Step 
The recent announcement is expected to further enhance the appeal of properties in already desirable areas like Sheikh Zayed Road and Al Jaddaf, which have consistently maintained strong value. A freehold property is an estate fully owned by an individual, free from any external control. The owner can sell the property without state approval and use the land for any purpose, as long as they comply with local regulations. 

This increase in liquidity will help create an even more vibrant real estate market in Dubai. Property owners will have the chance to unlock greater value from their assets, while investors can tap into these high-growth locations, which have long been recognized for their potential. The introduction of freehold ownership will also reinforce Dubai's appeal to international investors, spotlighting these strategic locations as attractive for long-term investment. 

Aligning with Dubai’s Vision 2040
Aligning with the Dubai 2040 Urban Master Plan, which seeks to enhance the city's urban areas and foster vibrant, inclusive communities, the newly introduced freehold ownership policy is crucial in reshaping Dubai's future. Here is how Dubai is turning this vision into reality:
●    Offering freehold ownership helps attract international investors, contributing to the city’s growth and development. This policy, along with initiatives such as the Golden Visa program, which has already granted over 100,000 visas to property investors and professionals, encourages expatriates to invest in Dubai and drive the city’s economic growth.
●    By providing access to property ownership, Dubai is diversifying its economy by reducing its reliance on oil revenues. It opens new opportunities in real estate, tourism, and other sectors. This strategic move enables the city to redefine its future and create a more resilient, innovative economy. 
●    Freehold ownership attracts a diverse mix of residents and investors, fostering vibrant, dynamic neighborhoods and promoting healthy, inclusive communities in the city.

A Vision for the Future
With a strong focus on innovation, sustainability, and excellence, Dubai is not only embracing change but also actively shaping its future. The city is unlocking new opportunities for property owners and investors, inviting them to play pivotal roles in its real estate journey. The introduction of the new policy serves as a clear testament to Dubai’s commitment to progress, granting full ownership in some of the most coveted locations. This strategic move ensures that Dubai will continue to evolve and maintain its momentum as a dynamic force in the industry.

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