5 New Ways To Invest In Property, From Low-Deposit Mortgages And Co-Ownership To REIT And The $136 Portfolio                        

Are you in search of new tactics for investment in the real estate market of Dubai? With a reported AED 191 billion (52.5 billion dollars) in residential property sales within the first half years alone, the real estate region of Dubai is booming. High-profit sales and luxury homes dominate the headlines, but there are also many options for additional affordable investments. Here are 5 new ways to spend money on property in Dubai, from low deposit mortgages and co-ownership to REITs and fractional ownership starting as low as $136.

5 New Ways To Invest In Property, From Low-Deposit Mortgages And Co-Ownership To REIT And The $136 Portfolio          

Affordable Entry With Fractional Ownership

You can now invest in Dubai’s luxury properties for as little as AED 500 ($136). This option makes real estate investment accessible to almost everyone. This initiative expands property accessibility and ownership opportunities while promoting collective investment in the sector. Investors can create a global real estate portfolio within minutes through a user-friendly digital platform. 

The platform manages all transactions from investment to exit, distributing monthly rental income and capital appreciation returns directly to the investor’s wallet. This model, which started during the COVID-19 pandemic, is designed to offer high-potential real estate opportunities to a broader audience.

Shared Ownership For Luxury Properties

Shared ownership is another innovative way to invest in Dubai real estate. For as little as $54,000, investors can own a share of a luxury property. This model allows investors to purchase 1/8 of a property, with their name on the title deed. Investors can enjoy 44 days of exclusive use each year, with access to world-class amenities in prime locations such as Downtown, Bluewaters Island, and Palm Jumeirah. 

The co-ownership model reduces the financial burden of sole ownership and simplifies paperwork and property maintenance. This model, already popular in other parts of the world, is expected to gain traction in Dubai due to the booming real estate market. The entire process is managed transparently through a dedicated team, and investors can use a mobile app to schedule stays, rent their days out, and sell their shares.

Also Read: Dubai Real Estate Sector Recorded $3.5bn Of Transactions Last Week

Low Deposit Mortgages And Financing Deals

Banks in Dubai are now offering financing options for off-plan property projects, reducing the burden of down payments. Traditionally, off-plan projects require substantial upfront payments. However, new financing schemes allow buyers to pay the first 50% during construction, with banks covering an additional 10% during the construction phase and the remaining 40% upon handover. This expanded payment plan makes it easier for potential homeowners and investors to secure their desired properties. 

For example, if a project is set to be handed over in Q2 of 2028, the payment breakdown would be 10% at booking, 50% over the next 15 months in equal quarterly installments, 10% financed by the bank during construction, and 40% at handover. The buyer then repays the bank over an extended period, typically up to 25 years, making the financial commitment more manageable.

Rent-To-Own Property Model

The rent-to-own (RTO) model is gaining popularity in Dubai. This model allows tenants to work towards homeownership without needing a large down payment. It is an attractive option for both renters and buyers, providing a stable income for landlords and a viable entry into property ownership for tenants. In recent years, the demand for rent-to-own properties has increased due to rising rental prices and economic factors. 

RTO schemes allow tenants to build equity over time, avoid large upfront costs, and evaluate the property and their financial situation before committing to a full purchase. Regulatory support has also encouraged rent-to-own agreements, making this option more appealing to both tenants and landlords.

Investing In Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are becoming an increasingly popular investment option in Dubai. REITs allow investors to gain exposure to real estate without directly owning physical property. They are traded on major stock exchanges, providing daily liquidity and distributing most of their income as shareholder dividends. REITs offer a way to build diversified portfolios with minimal investment and allow investors to enter or exit positions easily. 

They are managed by professionals who handle operations, freeing investors from the responsibilities of property management. Both commercial and residential REITs can be attractive options, depending on the investor’s risk tolerance. 

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert with extensive experience in the market, views the current trends in Dubai’s real estate sector as highly promising. He believes that the introduction of innovative investment models, such as fractional ownership and low-deposit mortgages, is democratizing property investment in the city.

Darbar points out that these developments are making it easier for a broader range of investors to enter the market, not just the ultra-wealthy. According to Darbar, the availability of rent-to-own schemes and Real Estate Investment Trusts (REITs) also provide more flexible and accessible pathways to property ownership and investment.

He emphasizes that these innovations are helping to sustain the momentum in Dubai’s real estate market, encouraging continued growth and stability. In his view, these developments are crucial for the long-term health of the market, as they attract diverse investors and ensure a steady stream of capital inflow. 

Darbar also notes that the expanded financing options and supportive regulatory environment are pivotal in facilitating these new investment models. By lowering the barriers to entry, the real estate market in Dubai becomes more inclusive, allowing more people to benefit from the city’s booming property sector. 

Darbar predicts that as more people become aware of these opportunities, there will be a significant increase in investment activity, further driving growth in the market. Overall, he is optimistic about the future of Dubai’s real estate sector, seeing these innovations as key drivers for sustained growth and wider accessibility. 

Conclusion

Dubai’s real estate market offers diverse investment opportunities beyond traditional property purchases. Whether through fractional ownership, shared ownership, low deposit mortgages, rent-to-own models, or REITs, investors have various ways to participate in this booming market. These innovative investment options make real estate in Dubai more accessible, providing new avenues for potential investors.