The first title deeds are being issued in Dubai under ‘fractional’ property ownership, which could dramatically add to the investor base in the local real estate market. In its simplest form, fractional ownership allows multiple investors to acquire an apartment, villa or other property types, and with each of them having ownership rights through the title deeds.
Under the current rules, “A maximum of four investors can acquire property together in the emirate,” said Sameer Lakhani, Managing Director at Global Capital Partners. “The fractional ownership rules apply to existing as well as older projects as long as they are approved by RERA (Real Estate Regulatory Agency) and Dubai Land Department in meeting necessary requirements.
“You are also developing the possibility of potential buyers buying fractions of the property from the auction market just as they can from the primary and/or secondary market. There will be a steady and vibrant secondary market that will develop for fractional properties in the medium term.”