Shard, a new company that offers co-ownership of luxury property in Dubai, is set to launch on July 1. The company allows investors to own 1/8 of the property, with the names of each co-owner on the title deed. Through Shard, investors or end-users can use the property for 44 days every year for personal living or to generate additional income by renting it out.
The CEO and co-founder of Shard, István Juhász, mentioned that each property listed on the platform allows for only eight investors or stakeholders who have the option to rent it out or use it for a staycation. Shard is the first platform to introduce the co-ownership model in the UAE’s real estate market, following its popularity in the US, Europe, and Southeast Asia. This model lessens the financial and paperwork burdens of sole ownership, making property ownership more accessible.
Prices on the Shard website include all charges such as Dubai Land Department fees, conveyancer fees, legal fees, trustee fees, and agent commissions. Utility bills are shared on a pro-rata basis among the co-owners based on their stays. Buyers can book their stays through the Shard app, similar to booking hotel rooms on other platforms. Juhász also mentioned that there are certain rules in place to ensure fair use of the property among the co-owners.
The asset in fractional ownership through Shard is highly liquid, allowing stakeholders to exit at any point at their desired price. If a co-owner wishes to sell their stake, it first goes to the other seven co-owners and Shard for consideration. If no interest is shown, it can be sold on the open market through the Shard platform after undergoing mandatory KYC & AML checks. Shard has partnered with real estate agencies and proptech companies to list and acquire properties in Dubai, with the platform launching on July 1 with nine properties for sale.
Shard has tailored its co-ownership model based on best practices from around the world, including the US, Mexico, Europe, and Asia. The system has been designed after reviewing 15 other existing co-ownership systems to create a unique offering for the Dubai market. Buyers and investors can expect a seamless experience through the Shard platform, with properties listed at various price points to cater to different preferences and budgets. With the introduction of co-ownership in Dubai’s real estate market, Shard aims to make luxury property ownership more accessible and hassle-free for investors and end-users alike.
Overall, Shard’s innovative approach to co-ownership of luxury properties in Dubai provides a unique opportunity for investors to own a stake in premium real estate without the financial and administrative barriers typically associated with sole ownership. With a transparent and structured system in place, co-owners can enjoy the benefits of property ownership while also having the flexibility to generate income through rental opportunities. As Shard prepares to launch on July 1, it marks a significant milestone in the evolution of the UAE’s real estate market, offering a new way for individuals to invest in the lucrative property sector in Dubai.
