Dubai launches push for fractional ownership of serviced apartments

George Sell George Sell Uploaded 03 August 2020

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UAE: The Dubai Land Department (DLD) is launching a fractional title deed concept in a bid to attract small investors to the hotel apartment segment.

The new initiative, recently announced by the DLD's Registration and Service Sector, is aimed at attracting investment into hotel or serviced apartment projects in Dubai. A fractional title deed refers to the division of the same unit into two or four fractional shares, each having its own title deed that may be sold, mortgaged, or transferred.

"The initiative is currently in its pilot phase for one project, and we look forward to have more projects like these following the initiative's full implementation," a DLD spokesperson said.

"Abreast of the growing number of Dubai investors, especially smaller investors, the fractional deed offers them the opportunity to become co-owners of properties by only investing a portion of the value. This reduces the financial cost on investors entering the real estate market by granting them flexibility to invest within their budgets," the spokesperson added. "Such a ticket-size investment will be affordable for all types of investors. As per the DLD's laws and guidelines of property registration, a fractional title deed may be registered under anyone's name."

Farooq Syed, CEO of Springfield Real Estate, said: "I believe joint ownership will bring a much-needed boost in demand in the hospitality sector. We need such innovative initiatives to revive the market especially post-Covid. Dubai has always been on the forefront of innovation thanks to the leadership of the city and I believe we will be amongst the first cities to bounce back post-Covid."

 

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