Dubai allows property owners on Sheikh Zayed Road
Property Owners residing on Sheikh Zayed Road (from Trade Centre Roundabout to the Water Canal) and Al Jaddaf area can now convert their land to freehold, Dubai Land Department announced.
Every nation can be allowed to exchange the ownership form. There are 457 total land plots that could be converted to freehold: 128 along Sheikh Zayed Road and 329 Al Jaddaf.
Steps to convert ownership
Owners of lands that are to be transferred need to check first whether they will receive benefit from it through the "Dubai REST" app as transfer requires an application to Dubai Land Department to appraise the land.
Common Area Fees & Service Fees: A 30 per cent (Gross Floor Area) conversion fee will apply after the common area fees and service charges are calculated under the Real Estate Regulatory Authority’s rules.
With payment, the converting property will be assigned a map and freehold ownership title deed.
Real estate sector growth
The plan will support owners in these areas by increasing their properties’ value at the market price, particularly if they choose to switch their land over to freehold ownership.
Allowing private owners of the tagged land at Sheikh Zayed Road area and Al Jaddaf to convert their properties into freehold ownership will spur massive growth in Dubai’s real estate industry," Eng. DLD Director General Marwan Ahmed bin Ghalita, said.
The investment also cements Dubai’s reputation as a global economic powerhouse and a prime real estate investment destination as per Dubai’s Real Estate Strategy 2033.
Dubai recently launched smart rental index with average rent of buildings and area, star rating system and building details like how the buildings are maintained, how they are parking, etc.
Rents will be higher the better rated the building is. Rent can also be raised by landlords of older buildings that receive a high rating when the building is being renovated and upgraded.
The new index applies to all inhabited districts, SEZs and free zones within the emirate.
Difference between leasehold and freehold
Leasehold basically states that you own the rights for a predetermined period of time (maximum 99 years). But you won’t get the land of the property.
Freehold ownership: you own the entire lot and the land it’s on. This property can then be sold, rented or lived in according to the owner’s convenience.
You might initially pay less for the leasehold than for the freehold but you are restricted in what you can do with the leasehold unless you have received written permission from the freeholder.
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