Dubai mainland properties have two types of property types; Freehold and Leasehold properties. Properties within the ‘Freehold areas’ could be sold to any type of eligible investor while the ‘Leasehold areas’ only doesn’t allow other nationalities other than Emiratis to own properties, they can only lease them as per law.
A recent update on the law announced that two main leasehold areas in Dubai now get to convert into Freehold ownership. This opens a huge volume of international investments to flow into Dubai with real estate investments, business opening up and jobs being made. What’s more interesting about these two areas are their geographical locations.
Private Properties on Sheikh Zayed Road
Sheikh Zayed road is one of the most famous roads in Dubai, providing an urban environment and in the vicinity of many world famous events. The area for this switch ranges from the World Trade Centre roundabout to the Water Canal.
Around 128 plots are eligible for this conversion on the Sheikh Zayed road.
Al Jaddaf
Sitting at the edge of the Dubai Creek this area carries huge potential in Dubai’s Real Estate market. With this conversion, this area opened up 329 plots eligible as potential Freehold properties.
The Transfer Process
The transfer can happen via the “Dubai REST” app. A valuation request should be made to the DLD while paying the common area and service fees to the RERA are paid. After they are sorted out, a fee of 30% of the property’s value is charged for the conversion which is based on the gross floor area.
Given the current property market which is bubbling up every single year, the properties in these areas gain a huge advantage and potential in opening up to the international market to be sold or to be leased at peak prices. Being placed right in the heart of Urban Dubai and right at the edge of Dubai creek, the buyers stand to receive the highest ROI with the properties bought.
You can be an owner looking to sell, a buyer looking to invest, or even an owner ready to lease, ANAROCK Middle East will fetch and negotiate the best deals in Dubai for you. Contact us or visit our offices for a quick chat, we are ready to assist with your real estate requirements right away.