We all want to be owners of those luxurious, shining, cloud chatting buildings, right? Well, read this out: The newly thriving concept of Fractional ownership is quite quickly becoming an eye-catching investment model within the UAE’s real estate landscape, especially in Dubai. This brand-new facility allows multiple investors to buy/own high value properties and hence, reduce the financial barriers that traditionally serve as a speed breaker to real estate investments.
Overview:
Instead of purchasing the entire asset, with the help of fractional ownership you may now acquire shares in a property with the help of Fractional ownership. Generally, investors acquire shares ranging from as low as 5% to 10% which enables them to engage in high end markets without running the risk of substantial capital investment. You can now diversify your portfolio of property investments and adhere to the age-old model of not putting all the eggs in one basket
There are several factors due to which this new concept of fractional ownership is gaining so much attraction
- Accessibility: Even with smaller investments, any one can enter the market and become investors. For example: you can spend one million AED to be fractional owner in a luxurious property that might otherwise be a dream amount of money
- Regulatory Support: The latest changes to the legislation of real estate ownership are supporting the shared ownership structures, which enhances the ever-enchanting attraction of Dubai real estate to foreign and even local investors
- Tech Ads: Up and coming digital platforms such as Smart Crowd are smoothening the process of acquisition of fractional property. In the coming days, we shall see a lot of smart solutions powered by easy to navigate technology
Benefits of Fractional ownership:
- Low financial obligation: You can share the expenses such as maintenance and taxes, so the initial financial outlay is not too much to manage.
- Investment Diversification: You can establish your portfolio in multiple directions and can allocate funds across a variety of real estate avenues. It reduces the risk of owning a single asset and associated risks
- High potential for gains: Fractional ownership cam provide investors with attractive returns because the property value continues to increase. Even in the case of rentals, the opportunities are endless
Future Outlook
Fractional ownership is the most rapidly developing investment trends in the Dubai market and by some early forecasts, it shall account for 20% of the Dubai’s real estate market in 2025 [imagine billions]. As the combining forces of favourable economic conditions, supportive governmental policies, and a growing demand for flexible investment alternatives grows, it positions fractional ownership as a major shift in the ever-evolving real estate market of Dubai, UAE. In conclusion, fractional ownership is set to emerge as a prominent trend in UAE real estate, providing an accessible entry point for a wider array of investors while aligning with global investment patterns and local economic development.
