Dubai Starts Issuing Fractional Property Ownership


Dubai Starts Issuing Fractional Property Ownership

Fractional Property Ownership
- Add to the investor base in the local real estate market.
- Allows multiple investors to acquire an apartment, villa or other property types.

Note: A maximum of four investors can acquire property together in the emirate.

- Apply to existing as well as older projects as long as they are approved by RERA and Dubai Land Department in meeting necessary requirements.
- Develop the possibility of potential buyers buying fractions of the property.

Makes A Case Fractional by Developer
The developer World of Wonders was the first to add fractional ownership at its new project:
1. SLS Dubai Hotel & Residences.
2. Investments start at Dh460,000 for the units.
3. The project is part of Downtown Dubai.

Fractional Ownership : Add to Investor Base
Fractional Ownership
- Path-breaker for Dubai real estate.
- Individual investors had to buy a unit in full.
- Allows the authorities and developers to target a much wider base of buyers.
- Dh2 million apartment becomes more accessible if a set of investors pitch their funds into it.

Rental Market Improvement
- More than enough sings of the rental market too recording steady improvements.
- Favouring landlords for the first time in nearly five years.
- More investors into the property market to offer their units as rental properties.

Property Investment: Cost
- Lowers the cost of a property investment in Dubai.
- Creates equal rights for that investor group.

Transfer Of Rights
No worries for fractional title deed owners as they can sell their stakes and transfer the deed to another buyer. The processes are smooth enough.

- SPV company is set up and collects funds from investors in smaller ticket-sizes.
- Establishes their rights to a property owned by the SPV company.
- Get returns based on what the unit will fetch in rental income or a future sale.

Fractional Ownership & Crowdfunding
Fractional Ownership is different from crowdfunding as the latter makes use of SPVs to bring down the barriers to investment to as little as Dh5,000 or Dh10,000.