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Sheikh Zayed Road to be Converted to Freehold Ownership
The announcement that Sheikh Zayed Road will be converted to freehold ownership marks a transformative shift in Dubai’s real estate landscape. In January 2025, DLD announced a decision to allow private property owners on Sheikh Zayed Road and Al Jaddaf to convert their properties to freehold. As one of the most iconic and commercially vibrant corridors in the UAE, this move unlocks a realm of opportunity for investors, developers, and future homeowners. Freehold ownership rights offer not only control and security but also signal a new era of growth for the UAE property market.
Overview of Sheikh Zayed Road
Stretching over 55 kilometers, Sheikh Zayed Road is the spine of Dubai, connecting key districts such as Downtown Dubai, Business Bay, DIFC, and Dubai Marina. It serves as a major highway that links the city with Abu Dhabi in the south and Sharjah in the north. Up to now, most of the land along Sheikh Zayed Road has been categorized under leasehold ownership. This means that while residents could lease property for 10 to 99 years, the underlying land remained under government or private ownership. This system has long been a limitation for foreign investors looking to gain long-term real estate assets in one of the most prestigious areas of Dubai.
What Is Freehold Ownership?
Freehold ownership refers to a property ownership model where the buyer holds full and perpetual ownership of the property and the land it sits on. Unlike leasehold, which is temporary and often renewable, freehold gives complete autonomy over the asset. Owners have the right to sell, lease, inherit, or even alter their property, subject to local regulations. These rights make freehold ownership attractive for long-term investors and families looking for stable property options in Dubai.
Government Announcement & Policy Shift
The Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) are leading the policy transition. The conversion process is expected to unfold in phases. Initial zoning and title deed changes will occur within the next 12 to 18 months. Legal documentation, new freehold contracts, and updates to property registration protocols will be handled by DLD.
Impact on Dubai Real Estate Market
Sheikh Zayed Road commands premium rent values due to its centrality. As the area transitions to freehold, experts predict an uptick in capital appreciation and rental yields, potentially outperforming even established freehold areas like Dubai Marina and Business Bay. Zones such as Al Wasl, Trade Centre, and World Trade Centre Residences may see a surge in residential developments. Expect to see luxury apartments, penthouses, and serviced residences hitting the market.
How Buyers Can Prepare
Before buying, investors should consult a certified legal advisor to review ownership rights, taxes, and developer credibility. It’s also crucial to ensure property valuation aligns with market trends.
To know more about this change and to get expert advise, book your free private consultation here.
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