The Dubai real estate landscape is experiencing a significant shift as the Dubai Land Department (DLD) introduces freehold ownership options in two strategic locations – Sheikh Zayed Road (SZR) and Al Jaddaf. Property experts predict substantial price increases following this landmark decision.
Breaking Down the New Policy
The DLD’s announcement covers:
- 457 total eligible plots
- 128 plots along Sheikh Zayed Road
- 329 plots in Al Jaddaf
- 30% conversion fee based on property valuation (gross floor area)
The conversion zone on Sheikh Zayed Road spans from the Trade Centre Roundabout to the Water Canal, marking a pivotal change in Dubai’s property ownership structure.
Price Projections and Market Impact
According to Farooq Syed, CEO of Springfield Properties, property values could rise by approximately 50% in these areas. This growth stems from:
- Increased demand from international investors
- New redevelopment opportunities
- Stronger rental yields
- Enhanced investor confidence
Commercial Property Outlook
Rohit Bachani of Merlin Real Estate highlights that commercial properties might see immediate benefits due to:
- Current shortage of quality office space
- Additional freehold commercial inventory
- Potential rent adjustments to match market levels
- Premium pricing for A+ buildings
Residential Market Benefits
The residential sector stands to gain significant advantages:
- Mortgage accessibility
- Increased property values
- Higher demand from expatriates
- Enhanced financial flexibility for owners
Al Jaddaf: An Emerging Hotspot
Al Jaddaf’s transformation comes at a strategic time:
- Growing commercial development focus
- Rising business interest
- Strategic location benefits
- Development potential
Investment Implications
For investors and property owners, the new policy offers:
- Simplified buying and selling processes
- Enhanced exit strategies for building owners
- Additional financial options through mortgages
- Increased market liquidity
Previous Success Stories
The market has already witnessed similar success stories. Villas in Al Wasl District saw prices increase to over Dh4,500 per square foot after transitioning to freehold status – roughly double their previous leasehold value.
Looking Forward
The conversion process includes:
- Property valuation assessment
- 30% conversion fee payment
- Issuance of new freehold ownership title deed
- Updated property mapping
This transformation of Dubai’s property landscape represents a significant opportunity for investors and end-users alike, potentially reshaping the city’s real estate market in 2025 and beyond.
JobXDubai 
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