Real Estate

Property prices in Sheikh Zayed Road (SZR) and Al Jaddaf are projected to experience a significant surge following the Dubai Land Department's (DLD) announcement allowing private property owners to convert their holdings into freehold ownership. Real estate experts anticipate heightened demand from investors and end-users, boosting both residential and commercial sectors in these key areas.

The DLD revealed that 457 plots—128 along Sheikh Zayed Road and 329 in Al Jaddaf—are now eligible for freehold conversion. Owners must pay a 30% fee based on property valuation to complete the process and obtain freehold ownership title deeds.

Farooq Syed, CEO of Springfield Properties, predicts property values in the areas could increase by up to 50% as freehold ownership enhances investor confidence and creates redevelopment opportunities, particularly for older hotels and buildings. This follows trends in similar areas like Al Wasl District, where villa prices more than doubled after becoming freehold.

Alois Kugendran, CEO of Amaya & Co Real Estate, highlights the appeal for expatriates and foreign investors, emphasizing that both property prices and rental yields are likely to rise.

Ayman Youssef, Managing Director of Coldwell Banker, notes that the freehold policy simplifies property transactions and allows owners to raise mortgages, unlocking financial flexibility. He estimates the initiative could generate up to AED 500 million in government revenue.

For commercial properties, immediate benefits are anticipated due to the current shortage of quality office space in Dubai. Rohit Bachani, co-founder of Merlin Real Estate, believes the policy will release equity for GCC landlords and boost demand for premium A+ office buildings.

Sheikh Zayed Road, with its prime location and access to top amenities, and Al Jaddaf, a growing commercial hub, are expected to become even more attractive for both residential and commercial investors.

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