Dubai starts issuing documents for «fractional» property ownership to expand the investor base

The first ownership documents are issued in Dubai as part of «fractional» ownership of real estate, which can significantly expand the investor base in the local real estate market. In its simplest form, «fractional» ownership allows several investors to purchase an apartment, villa or other types of real estate, and each of them has ownership rights through ownership documents.

According to the current rules, a maximum of four investors can jointly purchase real estate in the emirate. The rules of shared ownership apply to both existing and old projects, if approved by RERA (Real Estate Regulatory Agency) and the Dubai Land Department in accordance with the necessary requirements.

«Fractional» ownership is a real breakthrough in Dubai real estate. Until now, individual investors had to buy shares in full. There may be other investors, but only one will get ownership in his name. There is also a crowdfunding option, when groups of investors have rights to real estate, but the ownership document is issued to a special purpose company, and not to an individual. 

«Fractional» ownership allows the authorities and developers to focus on a much wider base of buyers.