Real estate experts described the decision of the Dubai Land Department to allow private property owners in the Sheikh Zayed Road area (within the area located from the mall roundabout to the water canal), and the Al Jaddaf area in Dubai, to convert it into a “freehold” as a bold initiative that will enhance… The volume of investments and increasing demand for these two regions.
They confirmed to “Emirates Today” that the decision is historic, and a new turning point in the Dubai real estate market, as it achieves a radical transformation in the market and helps change the main players in the sector, pointing out that the fees for converting private property to “freehold” amounting to 30% of the value of the valuation The plot of land may not greatly affect the decisions of real estate owners compared to the returns they could obtain, at a time when some of them expected to move towards forming alliances between developers if these fees constitute an obstacle, and they also expected to propose Projects with high prices and specifications, targeting large investors.
It is noteworthy that the number of lands included in the permit to convert to “freehold” is 457 plots of land distributed over 128 plots of land overlooking Sheikh Zayed Road (within the area located from the mall roundabout to the water canal), and 329 plots of land in the Al Jaddaf area.
In detail, Ismail Al Hammadi, the founder and CEO of “Biznet”, which specializes in consulting on the management and development of real estate projects in Dubai, said: “This step will have a positive impact on the real estate market in Dubai in the long term, given that many owners will consider the decision to convert their lands to freehold ownership.” To benefit from market returns.
Al Hammadi believed that this step will enhance the volume of investments and raise demand for these two areas, pointing out that both areas are distinguished by their strategic location, and each of them has a place on the investment and tourism map of Dubai, which makes them more attractive for real estate investment.
Al Hammadi expected that the demand for land in these areas would increase, in addition to an increase in prices, and that it would include other areas in the future, depending on market conditions and changes in demand.
Al Hammadi pointed out that the fees for converting private property into “freehold” amounting to 30% of the value of the valuation of the plot of land may not greatly affect the decisions of real estate owners compared to the returns they could obtain, due to the increasing activity of the market and the high demand recorded by Dubai real estate. From international buyer investors compared to other regional and global markets.
For his part, CEO of Al-Andalus Real Estate Group, Saleh Tabbakh, said: “Allowing the conversion of lands in the Sheikh Zayed Road and Al Jaddaf areas into freehold will enhance the sustainability and flexibility of the real estate market in Dubai, and this will also be attractive to international investors looking for guarantees and stability.” “Greater in their investments, given that these two regions are vital and lack new projects due to the scarcity of land there,” stressing that this step enhances the economic diversification of the Emirate of Dubai, and attracts a group of continuing researchers. About sustainable central real estate.
He added: “The transfer fees estimated at 30% of the appraisal value may constitute an obstacle for some owners, so I expect that they will move toward alliances with developers, but the attractions in the two areas, the strategic location, and their promising future will encourage landowners to do so.”
Tabakh expected projects to be offered at high prices and specifications targeting large investors, to provide a new real estate category in the market, and to push owners to develop luxury properties only, to compensate for the fees.
For his part, Chairman of the Board of Directors of Al-Waleed Investment Company, Mohammed Al-Mutawa, described the Dubai Land Department’s decision as “historic and a new turning point in the real estate market in Dubai. It achieves a radical transformation in the market, helps change the main players in the sector, and leads in the long term.” long term for price stability.
He added: “This decision will lead to an increase in land prices in all areas of Dubai, and will raise Dubai’s economic status and make it the world capital in the real estate sector, in addition to helping to increase economic activity in all sectors, whether restaurants, transportation, or commercial activity sectors.”
In the same context, the CEO of Malak Real Estate Company, Tariq Ramadan, considered Dubai Land’s decision a step that was required, due to the lack of sufficient land in the main areas, in addition to the presence of a large demand from real estate developers, which caused land prices to rise. It put pressure on the feasibility of development projects in some areas.
He stressed that this will contribute to encouraging the entry of a number of developers into the market with larger foreign investments, in addition to providing the opportunity for developers working in Dubai to purchase lands in key areas.
Ramadan believed that the demand for these two areas will be great, and will raise the value of these lands by 30 to 50%, which will ease the pressure on the prices of projects in other areas.
In response to a question about the transfer fees amounting to 30% of the appraisal value, he said: “Transfer fees existed in the past, and it is logical that they be present on freehold lands, due to the increase in the value of the lands by 50%. Therefore, it is logical for landowners to pay a percentage 30% for the department; “It gave them the opportunity to convert lands, and projects in these areas are more profitable.” He stressed that such decisions provide additional investment opportunities for local and international investors, and strengthen Dubai’s position as a global and regional center for real estate investment.
As for the Chairman of the Board of Directors of “Trad Real Estate Development Company,” Saeed Trad, he said: “Freehold ownership is one of the most important factors that encourage long-term investment, and therefore, this decision will contribute to increasing the demand for real estate in the two targeted areas, which will support an increase in its market value. It enhances the stability of the real estate market, and will also contribute to diversifying investment opportunities.”
He added: “The decision enhances new investments, given that freehold ownership provides legal stability and permanent ownership, which makes these areas more attractive for residential and commercial projects,” pointing out that the “Sheikh Zayed Road” and “Al Jaddaf” areas are distinguished by a strategic location close to the center of Dubai. , and prominent landmarks such as “Burj Khalifa” and “Business Bay”, as well as advanced infrastructure, distinguished connection to the public transportation network, and modern facilities, so transferring ownership “Freehold” will add an element of confidence and stability for investors, making the two regions more competitive compared to other regions.
Al Masdi: “Sheikh Zayed Road” and “Al Jaddaf” are among the most important real estate hotspots
Firas Al-Masadi, CEO of Fäm Real Estate, described allowing private property owners in the Sheikh Zayed Road area (within the area from the mall roundabout to the water canal), and the Al Jaddaf area in Dubai, to convert it into a “freehold” property, as a bold new initiative. It represents a win for all stakeholders, including investors, developers, and the real estate market in Dubai as a whole, stressing that it will attract a larger group of investors and enhance the market’s flexibility and growth in the long term.
Al-Masadi continued: “The (Al-Jaddaf) and (Sheikh Zayed Road) areas have now become among the most important hotspots for real estate, because granting freehold ownership to all nationalities in such prestigious areas would enhance market sentiment and investor confidence.”
Al-Masadi believed that this step demonstrates the Dubai Land Department’s commitment to creating new opportunities for investors and developers, and confirms the city’s position as a global leader in the field of real estate innovation, with a prosperous and comprehensive investment environment.
Regarding the implications of this decision in the Al Jaddaf area, he said: “The implications for Al Jaddaf are profound, as this strategic location, which now enjoys freehold status, will witness an increase in commercial activities and a rise in real estate prices. The Al Jaddaf area uniquely fills the critical supply gap, as it “It offers rare residential and commercial plots of land in the main areas of Dubai.” Regarding fees, Al-Masadi said: “Fees for converting land plots to freehold status must be taken into consideration, as sellers are likely to test the market by asking for higher prices, and if these prices exceed what is commercially possible for development, transactions may slow down.” “Over time, the market will regulate itself, and new price standards will emerge based on what buyers are willing to pay.”