A Dubai-based developer has unveiled a scheme to allow investors the opportunity to snap up part ownership of properties in a bid to make real estate investment more accessible.
Lootah Real Estate Development said its Real Share initiative is a technology-powered virtual property platform that allows fractional ownership of properties for as low as AED5,000 ($1,360).
The developer said the platform aims to innovate the way real estate investment works while creating a viable and secure means to facilitate property transactions and allowing foreign and local investors to buy and share real estate interests remotely.
It added in a statement that Real Share will “eliminate the roadblocks” in the processes involved in owning, managing, and selling real estate properties.
Saleh Abdullah Lootah (pictured below), CEO of Lootah, said the platform aims to offer an alternative to the traditional way to invest in a property, involving real estate brokers or intermediaries.
He said: “Whilst real estate is a superior kind of investment because of its tangible asset, passive income stream, and the potential for substantial appreciation, a lot of people find it difficult to invest in the property market because of the substantial amount of money that they have to put down for a deposit.
“With Real Share, investors of any size can now access the real estate market. Thus, we are pleased to introduce this smart and secure virtual solution that will help foreign and local investors, especially first- and small-time investors who wish to earn from rental income remotely. This platform will help clients diversify their investment portfolio with lower amounts rather than focusing on a single property alone.”
Real Share has partnered with SmartCrowd, the MENA region’s first financially regulated real estate investments platform (REIP), which has a licence from the Dubai Financial Services Authority, the independent regulator of financial services based in the Dubai International Financial Centre.
Russell Owen, COO of Lootah, said: “Real Share takes away the barriers in real estate investing by allowing everyone across the globe to have digital onboarding process and self-service features to browse and review properties, as well as monitor investments with ease.”
All homeowners can list their properties for investment opportunities in the Real Share platform.
According to SmartCrowd, people can invest a minimum of AED5,000 in a fraction of a property on Real Share. Data released by the REIP company also showed that they have paid out over AED500,000 in dividends to their investors with annual net returns ranging from 6-9 percent.
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