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Dubai's real estate sector has taken a significant leap with the announcement of freehold ownership in prime areas such as Sheikh Zayed Road and Al Jaddaf. The initiative, allowing all nationalities to own freehold properties, aims to enhance market sentiment and attract global investors. According to Firas Al Msaddi, CEO of fam Properties, this move positions these areas as key real estate hubs, offering opportunities for both residential and commercial developments. However, the associated costs and market dynamics may influence property transactions and price benchmarks.
Dubai's initiative to allow property owners in Sheikh Zayed Road and Al Jaddaf to convert their ownership status to freehold marks a transformative moment for the city's real estate market, noted Firas Al Msaddi, CEO of fam Properties. Advertisement
Al Msaddi remarked that this progressive move benefits all stakeholders, including investors, developers, and the market overall, by attracting a broader investor base and fostering long-term market resilience.
He further emphasised that both Al Jaddaf and Sheikh Zayed Road are emerging as premier real estate destinations. Granting freehold ownership to all nationalities in these sought-after locations is expected to elevate investor confidence and positively influence market sentiment.
Earlier this week, the Dubai Land Department (DLD) announced that 457 plots are eligible for freehold conversion, comprising 128 plots on Sheikh Zayed Road, from the Trade Centre roundabout to the Dubai Canal, and 329 plots in Al Jaddaf.
Al Msaddi highlighted that this decision reflects the DLD's dedication to fostering a thriving, inclusive investment ecosystem, solidifying Dubai's global leadership in real estate innovation.
The implications for Al Jaddaf are particularly noteworthy, he added, as this strategic area is likely to witness increased commercial activity and a rise in property values. Al Jaddaf's unique offerings address a critical gap in Dubai's property market by providing medium-sized residential and commercial plots, which are scarce in other prime locations. These plots are especially appealing to companies seeking to establish headquarters or single-tenant buildings.
However, Al Msaddi acknowledged the high fees for converting plots into freehold status. He noted that sellers might test the market with elevated asking prices, potentially slowing transactions. Over time, he predicted, market adjustments would establish feasible price benchmarks based on buyer demand.
He also pointed out that current market conditions favour developers focusing on off-plan sales rather than leasing, as the high demand for plots continues to drive prices upwards.
For Sheikh Zayed Road, Al Msaddi explained that the introduction of freehold ownership would amplify the market momentum spurred by new tower developments, significantly increasing the liquidity of plots in this prestigious area. Previously, plots on Sheikh Zayed Road were largely developed for lease, limiting their flexibility and appeal. With freehold ownership now available, this iconic stretch is expected to attract a global audience, transforming it into a competitive and dynamic investment destination.
Al Msaddi concluded by stating that this development opens up new opportunities for both developers and individual investors, ensuring these areas operate on robust, globally competitive principles. Ultimately, this move strengthens Dubai's status as a global leader in real estate innovation and opens up new opportunities for sustainable growth across the sector.
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