The Dubai Land Department (DLD) has introduced a fractional title deed scheme to encourage small investors to make property deals in the emirate at affordable rates. Under the new initiative, an investor can buy a quarter or half of a hotel apartment or a serviced apartment instead of the whole unit. An individual unit will be divided in two or four fractional shares, with separate title deeds, which can be sold, mortgaged or transferred by the owners.
With this scheme, DLD hopes to encourage crowdfunding in the property market and boost the hospitality industry in Dubai. The new scheme will also help lower the 4 percent transfer fee paid on sales transactions as the buyer will only need to pay a transfer fee on the amount invested.
The initiative, in its pilot phase, is currently being implemented in one project. There is no minimum investment required. The amount paid by investors will depend on the cost of the unit set by the developer, which will be based on market trends.
To highlight Dubai’s position in the global real estate market, DLD has also launched an ‘Invest in Dubai’ initiative. Under the theme ‘Discussing the Opportunities that Arise from Dubai as a Real Estate Investment Destination’, this initiative will bring together ‘real estate minds from all over the world’ virtually to build relationships and attract investments.
Speaking about this new forum, Director-General DLD, Sultan Butti bin Mejren said, “Dubai is witnessing successes that reflect the flexibility of the government’s directives during all circumstances, which qualifies it to enter a vital stage that would reflect the strength of the real estate environment in Dubai and its attractiveness. Here, the need to unify our visions, bring together real estate minds from around the world, and harness tools and capabilities are of utmost importance for us to help shape the future of real estate in a manner that enhances the sustainability of our successes to achieve global leadership in Dubai’s real estate market.”