Dubai real estate sector welcomes freehold drive

• Dubai freehold policy converts plots
• Freeholds for foreign buyers
• Emirati-only freehold areas remain

Dubai’s decision this month to convert the ownership of 457 plots to freehold status was welcomed enthusiastically by the emirate’s real estate sector, but industry experts are divided on whether this will lead to more restricted plots in prime areas becoming available to foreign freehold buyers.

The policy shift – in which 128 plots in Sheikh Zayed Road and 329 in Al Jaddaf were converted to freehold status by the Dubai Land Department (DLD) – is part of the Dubai Real Estate Strategy 2033. Introduced in October last year, the strategy aims to increase the number of real estate transactions by 70 percent. 

Shruti Krishnan, sales manager at White Window Real Estate, says the changes by the DLD have created “a big buzz” in the market. 

“Interestingly, we’ve noticed a gradual shift, with some leasehold areas being converted into freehold sections over time,” she tells AGBI.

“This will not only help the buyers by giving them more options but it will help fuel up the number of transactions and bring in more economic development from all over the world.” 

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Although areas such as Jumeirah Lake Towers, Dubai Marina and Emirates Hills already offer freehold opportunities, many areas such as Jumeirah, Palm Jumeirah, Downtown Dubai and Business Bay remain mainly freehold to only Emiratis or GCC nationals. 

“While it’s true that prime beachfront areas like Jumeirah, Al Barsha and residentially dominated neighbourhoods such as Al Nahda, Mirdif and Karama remain leasehold and largely accessible only to Emirati buyers, there are plenty of freehold options available for expatriates too,” Krishnan says.

“These freehold areas provide excellent opportunities for both investment and end use.”

Firas Al Msaddi, CEO of Fäm Properties, says he expects the policy to continue across the emirate. But he points out that the opening up of currently restricted individually owned plots and villas to freehold opportunities for international buyers does not align strategically with Dubai’s vision of real estate market growth.

The exact percentages of freehold versus leasehold properties are not disclosed by the DLD, Al Msaddi says.

“Certain beachfront areas remain restricted to Emirati and GCC ownership, largely due to coastal preservation laws and national interests,” he says. “These regulations ensure a balance between public access and private investment while safeguarding cultural heritage.”

The DLD’s decision will particularly affect the commercial sector in these areas, says Rohit Bachani, co-founder of Merlin Real Estate. He admits that while the 30 percent valuation and conversion fees might yet pose some challenges, they are unlikely to deter investors, given the importance of Sheikh Zayed Road and Al Jaddaf as prime commercial areas. 

“Additional inventory might offer more options for freehold commercial offices, but could also lead to higher ownership costs, with private landlords adjusting rents to reflect the market,” Bachani says. 

Ali Muslam Bu Mansour, managing director of real estate company Object 1, says of the reform: “This boom reflects rising buyer confidence, bolstered by new project launches and policy reforms such as residency incentives and visa programs for foreign investors.

“As Dubai continues to offer more opportunities for expatriates to retire in the emirate, or simply access golden visas, this will continue to spur growth in the residential sector.”