Dubai's new freehold policy shakes up the real estate market!

The Dubai real estate market is in for a major change! On January 21, 2025, the Dubai Land Department announced a landmark new policy to open up freeholds in selected areas, attracting the attention of investors from around the world.

Which areas benefit? The policy change involves a total of 457 plots of land on Sheikh Zayed Road (Business Center Roundabout to Waterway District section) and in the Jodaf area. Specifically:

• Sheikh Zayed Road: Dubai's core business location, involving 128 pieces of land
• Jodaf area: historic and prime location, involving 329 plots of land

These areas are already strategically located, and the opening up of freehold is bound to trigger a boom in real estate investment.

The investment dividend of freehold

In the past, most properties in Dubai were 99 years old, but freehold means that buyers can hold onto their property indefinitely and sell, rent or inherit it without having to renew it or pay additional fees. In the long run, this will greatly increase the value of the property and the stability of the investment.

How has the market reacted? Mohammed Matwa, CEO of Al Waleed Real Estate, said the new policy will not only attract more overseas investors, but also boost Dubai's overall economic growth. He predicted:

• Freehold properties will be priced at 50 percent higher than normal property rights.
• A significant increase in return on investment, attracting high net worth individuals from around the world.
• Increased supply in the market, contributing to long-term stability.

Ismail Hamadi, CEO of Rawad Real Estate, also pointed out that this policy will allow small investors to diversify their portfolios, both in terms of renting and resale, which will lead to greater returns.

How to capitalize on the Dubai freehold investment opportunity?

1. Choose a prime location

Priority should be given to Sheikh Zayed Road and Jodaf area, which are both commercial centers and high-traffic areas with great potential for growth.

2. Calculating conversion costs

When applying for permanent ownership, owners need to pay a conversion fee of 30% of the appraised value of the land, but this is still a very cost-effective investment compared to the future appreciation of assets.

3. Monitor market trends

With the implementation of the policy, the Dubai real estate market is about to embark on a wave of price increases, early layout can seize the opportunity.

Conclusion: Dubai's new real estate policy opens up the wealth code

The opening of Dubai's permanent property rights will not only attract global investors, but also boost the entire real estate industry into a new stage. For investors who are interested in purchasing property in Dubai, this is the golden opportunity to layout. By seizing this historic opportunity, you can expect to realize wealth appreciation in the Dubai real estate market and open a new chapter of investment!

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