DLD (Dubai Land Department) will be implementing its innovative new concept of fractional title deed throughout the Emirate of Dubai for drawing more small investors to the hotel apartment category as per reports. The Registration and Service Sector of the DLD has confirmed this new initiative for drawing more investments in serviced apartment or hotel projects across Dubai, one of the world’s biggest lifestyle and tourism hubs.
Fractional title deeds enable division for a single unit into 2/4 fractional shares, with each of them possessing their own title deeds which may be mortgaged, sold or transferred like any other property unit. A pilot project has been undertaken and more such projects will be implemented in the future as per the DLD. Smaller investors will now be able to co-own properties by investing only a fraction of the total value, lowering financial entry-barriers and offering more flexibility. One of Dubai’s biggest growth drivers is its hospitality sector which has already drawn leading developers like Nakheel, Emaar and Damac among others.
The UAE’s implementation of strategies for protecting the health of residents and visitors who started arriving in the country from 7th July will augur well for a swifter recovery of its tourism sector. Experts have given a major thumbs-up to this move.
CEO at Home Smith Estate Brokers, Babar Ali, has opined that joint ownership for hotel apartments will be a wonderful concept with several big realty players already offering joint ownership schemes.
CEO at Springfield Real Estate, Farooq Syed, stated that this new initiative will help the market recover faster from the impact of the COVID-19 pandemic while ensuring higher demand in the hospitality sector.
CEO at Square Yards, Tanuj Shori, stated that there are innumerable advantages of fractionalization of real estate, creating the foundation for a highly liquid, transactional and huge real estate market which unlocks immense value in turn. He talked of how public real estate exchanges may be created in the future for participation of smaller retail investors, enabling transfers of ownerships with a few clicks and easier settlements. The per trade cost will be nominal in these cases according to him.
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Published Date: 3 August 2020