Fractional Property Ownership in Dubai Attracts New Investors

Dubai recently started issuing fractional property ownership title deeds. In other words, now up to four investors can hold a title deed for a single property. This is a significant change for Dubai real estate market opening many new opportunities. 

Who will benefit from it?

This is an ideal option for everyone who wishes to benefit from the Dubai real estate market while avoiding the hassle of getting a mortgage or having their property managed. As of now, a maximum of four investors can buy a property in Dubai together. Previously, even if owned by multiple investors, only one of them could have the title deed under his name. The new ownership scheme applies to all existing and older projects provided they are approved by RERA (Real Estate Regulatory Agency) and Dubai Land Department. There is no doubt that many upcoming projects will avail of this option. Also, even more, investors will seize this opportunity to expand their property portfolio.

Leading the way

The first one to offer fractional ownership in Dubai was World of Wonders, for its new project SLS Dubai Hotel & Residences. Boasting a prime Downtown Dubai location, SLS Dubai Hotel & Residences fractional investment opportunities start as low as Dh460,000 for a unit. This is a superb price for a fraction in such a high-end project. Furthermore, the investors benefit from a 7-day stay per year per fraction for 10 years and a 7% guaranteed net return for 10 years. Also, there is a buyback option after 10 years. “We are making luxury real estate investments more accessible to more regional and international investors, especially EXPO 2020 attendees", said Yahya Alkan, CEO of WoW Real Estate Development. Considering that EXPO brought many interested investors, businesses and residents, SLS Dubai Hotel & Residences is the first project to recognise the potential of such a concept on the market.

This is the first time that the UAE is offering fractional ownership in addition to guaranteed net returns and individual title deeds. 

“As Expo 2020 visitors stay longer to experience what Dubai has to offer, this would be a hassle-free investment opportunity”, Mr Yahya Alkan added.

The future of Dubai real estate

Dubai real estate witnessed a record year in 2021, followed by a successful January. Both sale and rent prices went up in many communities. Fractional ownership gives a unique opportunity to foreign investors and low-ticket buyers to dive into luxury property investments. In the future, if they decide to sell their share, they just need to transfer it to the new buyer.

Unlike time-share or joint ownership, fractional ownership allows you to obtain an individual ownership certificate that does not require other owners' approval for resale. The investors enjoy steady annual returns and higher capital value appreciation.

If you want to know how to buy a property in Dubai with fractional property ownership, get in touch with us on +971 4 518 7555. Our team will lead you through the process and share all the options with you.