Dubai Revises Property Rules: Freehold Ownership Now Available in Key Areas

By Smith Jan31,2025

Dubai has announced an important update to its property rules, enabling more areas to acquire freehold ownership. This action is expected to attract worldwide investors, boost the real estate market, and create long-term prospects for buyers.

With these new laws, more investors can now fully own houses in Dubai’s most desirable communities. Whether you’re an expat, a business owner, or a first-time buyer, this is an excellent opportunity to buy an area of Dubai.

What is Freehold Ownership?

Freehold ownership means full control of the property. The owner has complete rights over the land and building. There are no lease restrictions. Buyers can sell, rent, or keep it for future use. Many prefer freeholding because it gives security.

Why Did Dubai Change Its Property Rules?

Dubai wants to attract global investors. More buyers bring more growth. This move boosts the economy. It also increases demand for homes. The government wants a stable market. Freehold ownership helps achieve this goal.

Major Updates to Ownership Rules

Dubai Land Department (DLD), recently changed the rules for ownership status and gave the owners of certain properties in key areas the ability to change their ownership status to freehold.

Before this development, the ownership of these types of properties was limited only to GCC nationals. Now, the initiative is open to all nationalities and includes a total of 457 plots eligible for conversion:

  • 128 plots on Sheikh Zayed Road (from the Trade Centre Roundabout to the Water Canal)
  • 329 plots in Al Jaddaf

This ownership status change will enhance the market value of properties in these prime locations.

What is the importance for Investors?

This renovation is excellent news for Dubai real estate investors, as it opens up fresh opportunities. You can now buy investment properties in several of Dubai’s most appealing places without requiring to share ownership. The ability to convert ownership status to freehold offers several benefits:

  • Greater investment flexibility
  • Long-term security
  • Risen property value potential

This development solidifies Dubai’s determination towards a robust real estate industry that provides growth and stability in the region. The real estate market in Dubai is very alive and lively and has endless opportunities for adventurers.

Key Areas Now Open for Freehold Ownership

Dubai has added several areas where freehold ownership is now allowed. These locations offer great investment potential.

Sheikh Zayed Road

Dubai has one of its most popular roads here and it now contains 128 plots that can be converted into freehold properties. It is famous for its many towering buildings, office spaces, and high-end apartments.

Al Jaddaf

With 329 plots now available for freehold ownership, Al Jaddaf is a rising hotspot for investors looking for prime real estate opportunities.

Freehold Properties: Process for Applying for Land Assessment

Landowners must apply to the Dubai Land Department (DLD) to change their leasehold properties to freehold.

  1. Application Submission: Property owners must apply to DLD for land assessment and valuation.
  2. Assessment & Fees: General area costs and service costs will be set using Real Estate Regulatory Authority (RERA) guidelines.
  3. Conversion Fee: Homeowners must pay a 30% conversion fee according to the property’s value (calculated using gross floor space).
  4. Ownership Title Issuance: Following payment processing, a new freehold ownership title document and updated property map will be delivered.

This process ensures a transparent and smooth transition for property owners looking to secure freehold status.

Benefits of Freehold Ownership in Dubai

1. Full Property Rights

Owners have full rights over their property. They can sell or rent it anytime.

2. Long-Term Investment

Dubai property prices rise over time. This makes it a great investment option.

3. Residency Benefits

Investors can apply for residency visas. Dubai offers long-term visas to property owners.

4. Higher Rental Income

Dubai has a high demand for rentals. Freehold properties offer a steady income.

5. No Lease Restrictions

Unlike leasehold properties, freehold has no time limits. Owners can keep it forever.

Impact of the New Property Rules on Dubai’s Market

These new rules will change the real estate market. More investors will buy homes. Prices will rise in freehold areas. Developers will build more projects. The market will grow fast. This is sound for buyers and the economy.

How to Buy Freehold Property in Dubai

Buying freehold property is easy. Follow these steps:

●       Choose the Right Area: Pick a location that fits your needs. Look at prices and future growth.

●       Find a Trusted Developer: Work with a reputed builder. Check past projects before buying.

●       Understand Legal Requirements: Learn about Dubai property laws. Ensure all documents are correct.

●       Secure Financing: Many banks offer home loans. Compare rates before applying.

●       Hire a Real Estate Agent: Real Estate Agents make the process easy. They help with paperwork and deals. You can find the best real estate agents here.

 

FAQS About Freehold Ownership

1. Can foreigners buy freehold property in Dubai?

Yes, foreigners can buy freehold properties in designated areas.

2. Do I need a visa to own property?

No, but investing in property can help with visa applications.

3. Is freehold ownership better than leasehold?

Yes, because freehold gives complete ownership rights.

4. Are there any hidden costs?

Buyers should check for service fees and other charges.

5. Can I rent out my freehold property?

Yes, owners can lease their properties for rental income.

Conclusion

Dubai’s new property rules create great investment opportunities. Freehold ownership in key areas will attract many buyers. It strengthens the real estate market. Investors now have better options. This is the perfect moment to buy residential real estate in Dubai and begin living there. Feel free to take benefit of this offer.

If you are searching for expert guidance in Dubai’s real estate market, contact our internal experts right away, and we will help you choose the perfect home and guide you through the buying procedure.

By Smith

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *