Secure Your Own Palm Downtown Home for Just Dh200,000: Here's How

A recently announced company in Dubai is introducing co-ownership opportunities for luxury properties. Scheduled for launch on July 1st, according to a senior executive from Shard, the company provides 1/8 ownership shares, with each co-owner's name included on the title deed. Investors and end-users will have access to the property for 44 days annually, allowing for personal use or the potential to generate additional income through rentals.

"Each property accommodates a maximum of eight investors or stakeholders who have the flexibility to either rent it out or use it for staycation purposes. Properties featured on Shard are off market; we list them on our website and actively seek potential buyers. If there's no interest in a property within a month, we remove it from the website. However, if there is interest, we maintain the listing online for up to three months." - István Juhász, “CEO and co-founder of Shard”

The co-ownership or fractional ownership model has gained popularity in the US, Europe, and Southeast Asia, and Shard is pioneering its introduction into the thriving real estate market of the UAE. This model relieves the challenges associated with sole ownership, such as significant financial investments, complex administrative tasks, and property upkeep.
 

Shard has curated a selection of apartments starting from Dh200,000, as well as villas like a mansion on Palm Jumeirah priced at nearly Dh5 million per share. Consistent rules apply across all properties and co-owners, regardless of the property's value.

Fees and Utility Bills
 

The prices listed on the Shard website are inclusive of all charges, such as a four percent Dubai Land Department (DLD) fee, conveyancer fee, legal fees, trustee fees, agent commission, and other applicable costs. Utility bills will be divided proportionally among co-owners based on usage. Each co-owner is responsible for paying utility bills and other related expenses during their stay period. Fixed costs are evenly shared among all eight co-owners.
 

Buyers and investors can manage their stay schedules using the Shard app, similar to booking hotel rooms on platforms like Booking.com and others.

 

"Specific guidelines apply due to the involvement of eight co-owners per property. Therefore, there are restrictions on the frequency and duration of stays. Additionally, reservations can be made up to two years in advance, with the exception that consecutive Christmas holidays cannot be booked to ensure fairness among all owners." - Juhász.
 

Regarding selling a stake in fractional ownership, the asset offers high liquidity, allowing stakeholders the flexibility to sell at any time and at their preferred price.




 

Juhász added that:
"Initially, the sale opportunity will be offered to the other 7 co-owners and Shard. If nonexpresser interest, the stake can then be listed for sale on the open market via the Shard platform, and the seller may also propose a buyer. However, Shard will conduct mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on the buyer. While other co-owners have the option to purchase the stake, they do not have the authority to block the sale. Shard reserves the right to refuse the sale based on KYC and AML considerations."
 

Shard has collaborated with real estate agencies and proptech firms, including Better Homes, Huspy, and others, to list and acquire properties in Dubai. The Shard platform will debut on July 1st with nine properties available for purchase.

"We studied leading practices from around the world, including the US, Mexico, Europe, and parts of Asia. Drawing inspiration from 15 existing co-ownership systems globally, we tailored Shard specifically for Dubai, incorporating proven models and adapting them to local needs." - Juhász.