New Dubai property platform Shard allows up to 8 investors to ‘co-own’ a home
Dubai: It’s getting easier to get a piece of prime property in Dubai, whether that’s a home costing tens of millions of dirhams on the Palm or a Dh1 million home elsewhere.
And the minimum investment? At Dh200,000 each.
This is where the co-ownership model comes in. These days with Dubai real estate rules allowing multiple title deeds on a single property, investors are in the mood to ‘share’ those rights.
A new co-ownership investment platform Shard is launching in Dubai early next month, and with plans to extend its scope to the other emirates too. Shard is promising a ‘1/8 ownership’ and with the investors’ names on the title deed.
Not just that, these individual investors have access to stay in the property for a period of 44 days or more in a year.
“Buying the home you fall in love with is expensive and investing in real estate funds feels impersonal,” said István Juhász, CEO and co-founder. “With co-ownership comes the attractive benefits of both without the hassle of managing the property.
“We have designed a seamless experience for our customers to enjoy effortless co-ownership from buying through scheduling all the way to reselling.”
One title deed – 8 names
“Shard lets up to 8 people co-own the property – that is one title deed with up to 8 names on it,” said Juhász. “The Dubai Land Department does allow 8 non-blood relatives to be featured on one title deed.
“In fact, there is precedent for even more than 8 names. The limit of 4 is coming from a related legislation but does not apply to this use case.”
Will co-ownership get traction?
In the last two years, the Dubai real estate space has had multiple factors channelling its growth. One key factor was the issuing of Golden Visas for investors putting in a minimum of Dh2 million on a property. Under these circumstances, co-ownership options remained a niche rather than go mainstream.
While the property-backed Golden Visa program still retains its popularity, investors could now be ready to give thought to taking a stake in Dubai property through co-ownership rights. Property values continue to gain in double-digits across Dubai freehold hubs – and co-ownership gives these investors a chance to keep their exposures to certain limits that they are comfortable with.
“Our cheapest property costs just above Dh200,000 for a 1/8 share,” said Juhász. “This price includes every related cost: the DLD fee, conveyancer fee, fit-out, and commissions.
“To reserve a spot, investors must make a refundable Dh5,000 payment. The remaining amount will be due once the property attracted enough interest and we go ahead with turning it into a ‘Shard’.”
