Dubai’s real estate market is experiencing a significant boom, with residential property sales hitting AED 191 billion ($52.5 billion) in the first half of the year alone. From multi-million-dollar homes on Palm Jumeirah to luxury apartments with Burj Khalifa views, the city’s real estate continues to set records. However, investment opportunities in Dubai are not limited to the ultra-wealthy. Here are five new ways to invest in Dubai’s property market that are accessible to a broader range of investors:
Fractional Ownership Starting at $54,000
Platform: Shard
Description: Shard offers a co-ownership model that allows investors to own 1/8 of a luxury property in Dubai for as little as $54,000. This innovative approach, proven worldwide, provides access to premium real estate and world-class amenities at a fraction of the cost. Shard’s service, launched to the public on July 1, includes the investor’s name on the title deed and seamless property management.
Low-Deposit Mortgages
Description: For those looking to get on the property ladder without a large upfront cost, low-deposit mortgages offer an accessible entry point into Dubai’s real estate market. These financial products reduce the barrier to entry, enabling more people to invest in property without needing millions in the bank.
Real Estate Investment Trusts (REITs)
Description: REITs are companies that own, operate, or finance income-generating real estate. They offer an easy way to invest in real estate without the need to buy properties directly. Investors can purchase shares of REITs, which are traded on major stock exchanges, providing liquidity and diversification.
Dubai Property Investment from $136
Platform: Stake
Description: The Dubai Land Department has incorporated the Stake real estate investment platform into the Real Estate Evolution Space Initiative (REES), allowing investors to buy into luxury properties for as little as AED 500 ($136). Established in 2021, Stake offers a fully digital experience, managing all investor transactions from investment to exit, and distributing monthly rental income and capital appreciation returns directly to investors’ wallets.
Shared Ownership Models
Description: Shared ownership models are becoming increasingly popular in Dubai, allowing multiple investors to co-own a property. This approach not only makes luxury properties more affordable but also reduces the risk associated with property investment. Investors can enjoy the benefits of property ownership, such as rental income and property appreciation, without bearing the full cost.
Expanding Accessibility and Investment Opportunities
These innovative investment models are democratizing Dubai’s real estate market, making it accessible to a wider audience. Whether you’re looking to invest a modest amount or interested in co-owning a luxury property, Dubai offers a variety of options to suit different investment goals and budgets.
The introduction of platforms like Stake and Shard signifies a shift towards more inclusive and digital real estate investment opportunities, ensuring that more people can participate in and benefit from Dubai’s thriving property market.
Source: Arabian Business
