Dubai: Own a Luxury Home on The Palm or Downtown for Just AED 200,000
A new company, Shard, is revolutionizing the Dubai real estate market by offering co-ownership of luxury properties. Set to launch on July 1, Shard’s innovative platform allows investors to own 1/8 of a luxury property, with each co-owner’s name on the title deed.
Usage and Flexibility
Investors and end-users can use the property for 44 days annually, either for personal use or rental income. “In each property, only eight investors are allowed, who can choose to rent it out or use it for staycations,” explained István Juhász, CEO and co-founder of Shard, to Khaleej Times. Properties listed on Shard are off-market, and if there is no interest within a month, they are removed from the website. However, if interest is shown, properties remain listed for up to three months.
Alleviating Ownership Burdens
The co-ownership model, already popular in the US, Europe, and Southeast Asia, is new to the UAE’s booming real estate market. Shard’s platform alleviates the burdens of sole ownership, such as large financial outlays, complex paperwork, and property maintenance.
Property Listings and Pricing
Shard has listed numerous apartments starting at AED 200,000, with villas including a Palm Jumeirah mansion priced at nearly AED 5 million per share. The same rules apply to all properties and co-owners, regardless of price.
Fees and Utility Bills
Prices on the Shard website include all charges, such as a four per cent Dubai Land Department (DLD) fee, conveyancer fee, legal fees, trustee fees, agent commission, and others. Utility bills are paid on a pro-rata basis, with co-owners paying for the duration of their stay. Fixed costs are equally shared among all eight co-owners.
Scheduling Stays
Buyers and investors can schedule their stays through the Shard app, similar to booking hotel rooms on platforms like Booking.com. Certain rules apply due to the involvement of eight co-owners, including limits on the number and duration of stays, and a fair usage policy during holidays.
Selling a Stake
In terms of selling a stake, the asset is highly liquid. Stakeholders can exit at any time at any price. However, the sale must first be offered to the other seven co-owners and Shard. If none are interested, it will be listed on the open market through Shard, with the seller allowed to bring a buyer. Shard conducts mandatory KYC & AML checks on buyers. While other co-owners have the right to buy, they cannot object to the sale; only Shard can refuse a sale due to KYC & AML reasons.
Partnerships and Launch
Shard has partnered with real estate agencies and proptech companies, such as BetterHomes and Huspy, to list and acquire properties in Dubai. The platform launches on July 1 with nine properties for sale.
“We studied the best practices globally, including in the US, Mexico, Europe, and Asia, and hyperlocalised Shard for Dubai. This system is based on 15 other co-ownership models worldwide,” said Juhász.
Reference: Abbas, W. (2024c, June 25). Dubai: Now, “own” a home on The Palm, Downtown for just Dh200,000; here’s how – News | Khaleej Times. Khaleej Times. https://www.khaleejtimes.com/business/realty/dubai-now-own-a-home-on-the-palm-downtown-for-just-dh200000-heres-how
