Dubai’s real estate market may now represent an exciting opportunity for real estate investors. For a considerable number of years, the Middle East has seen a sizable amount of interest from property investors, and never more so than in the UAE. However, property in the country has generally been created and marketed with luxurious furnishings and an expensive price tag, leaving many younger and first time buyers without the ability to make an investment.
This could all change in the very near future, though. With recent declines in property prices in Dubai and many new projects in the pipeline offering affordable homes, owning a piece of real estate is becoming more and more accessible to investors. In fact, apartments in Dubai are now selling for up to Dh400,000 less than in 2008.
But in order to stay ahead of the times, there is also an alternative and relatively new way of investing in property in Dubai. Make way for property crowdfunding. If you’re unfamiliar with it, you needn’t look far to discover companies offering this beneficial way of getting involved in the property market. Property crowdfunding allows multiple buyers to invest in a property and reap the benefits when tenants are found.
Durise, a property crowdfunding business in the Middle East, was the first to offer such investment opportunities in the region. The company is currently offering investments in residential apartments in Liwan, an area of Queue Point, Dubai. Buyers can invest a minimum of $5,000 and the total price of the property is $320,000. In addition to this, Durise has also secured a two bedroom apartment in the Index Tower, the tallest residential tower in The Dubai International Financial Center (DIFC). This listing will be open to potential investors in the near future and has a total price of $1.04m and the same minimum investment option of $5,000. Should any offered properties not receive enough funds to reach the target price, Durise will provide refunds to all investors.
While some people may feel like investing in property via property crowdfunding does not make them actual homeowners, there are several benefits to this new age approach. Making smaller investments in several different properties gives buyers the opportunity to increase the diversity of their portfolio whilst also reducing their risks by sharing them with other investors. Not only that, but for those who have little experience in the property market, crowdfunding can provide a steady and easy way of becoming involved in real estate. Further to this, taking out loans in order to purchase a property alone can often prove difficult and time consuming. Property crowdfunding alleviates the need to borrow funds with its low minimum investment options.
With this in mind, it’s clear to see that property crowdfunding can benefit all potential buyers, from the complete novice through to the vastly experienced.