Top platforms for real estate crowdfunding in Dubai
Do you wish to participate in the lucrative real estate market, but traditional investment options are out of reach? There’s an ideal solution for you—real estate crowdfunding in Dubai! There are several platforms for investors to start their journey with a minimal amount. Let’s explore some of the top-rated options for real estate funding.
WHAT IS REAL ESTATE CROWDFUNDING?
Real estate crowdfunding is a concept that allows individuals to invest in properties with minimal amounts of money. Instead of needing millions to buy a whole building, you can invest alongside a group of people, each contributing a smaller amount. This gives everyone a chance to own a property in Dubai.
Real estate crowdfunding in Dubai offers a compelling opportunity for investors seeking portfolio diversification, strong returns and passive income. However, with a growing number of platforms offering access to these investments, choosing the right one can be challenging.
TOP OPTIONS FOR REAL ESTATE CROWDFUNDING IN DUBAI
Skipping the research or thorough comparison of crowdfunding providers in Dubai can increase your risk. Some platforms might have high fees, lack transparency, large minimum investments or limited due diligence on the properties offered. To help you narrow down your list, we’ve rounded up some of the top crowdfunding options.
SMARTCROWD
If you’re looking to generate passive income, SmartCrowd is one of the leading choices for property crowdfunding in Dubai, with more than 90,000 registered users. Its team of dedicated professionals sources high-potential opportunities using data-driven analysis and third-party valuation.
Moreover, the Dubai Financial Services Authority (DFSA) monitors the firm’s transactions. SmartCrowd offers transparency with precise timelines and mentioned fees. The entry fee is 1.5%, along with other charges. Please check the official website for a complete breakdown of all the charges.
INVESTDUBAI
Next on our list of the best real estate crowdfunding platforms is InvestDubai. It is a luxury real estate investment arm of Greenbull Group, a French-Swiss international conglomerate.
Since its inception, the platform has garnered over USD 150M in investments in more than 35 projects, totalling more than USD 300M. Through its partnership with SmartCrowd, it enables fractional real estate investment.
The investment process with InvestDubai involves thorough research, knowledge and connections to help find a suitable property. The acquisition and renovation of the property follow this stage. Once all the renovations are complete, the property is sold at a profit via agents/brokers, and the profits are shared once all the minimum project earnings are met. Start your investment journey with InvestDubai from USD 500 onwards.
Stake
Stake, also called GetStake, is a pioneering platform designed to democratise access to prime rental properties in Dubai. Forget the traditional barriers of substantial down payments and lengthy mortgage processes. It’s simple and easy to join this platform. With the fractional ownership concept, you can start with an AED 500 initial investment.
By acquiring shares in meticulously chosen properties, investors can easily construct a diversified real estate portfolio. Their user-friendly mobile app and web platform provide complete control and transparency over investments.
BAYTUKUM
Regarding crowdfunding in Dubai real estate, Bayutukum is a good option. The platform is registered with the Dubai International Financial Centre (DIFC) and licensed and regulated by the Dubai Financial Services Authority (DFSA).
The platform offers passive income through tangible assets with a diversified portfolio. It also provides increased cash flow through dividend earnings from your real estate crowdfunding projects. The best part is a chance for capital appreciation over time, as the property market tends to outperform other investment instruments in the long run.
FAQs
WHICH REGULATORY AUTHORITY OVERSEES CROWDFUNDING IN DUBAI?
Multiple regulatory authorities oversee crowdfunding in the UAE, including real estate crowdfunding. These include:
- Securities and Commodities Authority (SCA)
- Central Bank of the UAE (CBUAE)
- Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM)
- Dubai Financial Services Authority (DFSA) in Dubai International Financial Centre (DIFC)
These entities work to ensure compliance with established regulations and standards, fostering a secure environment for all participants. The Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC) is the main authority and regulator for all real estate crowdfunds in the emirate.
IS REAL ESTATE CROWDFUNDING RISKY?
Yes, just like any investment project, crowdfunding has its risks. All markets, including real estate, are subject to various market conditions. Make sure to conduct your due diligence and research before investing.
WHAT IS THE DIFFERENCE BETWEEN REIT’S AND REAL ESTATE CROWDFUNDING?
While both real estate crowdfunding platforms and REITs (Real Estate Investment Trusts) provide access to the real estate market, their investment structures and associated benefits and risks significantly differ.
Real estate crowdfunding platforms offer a direct investment approach. Individuals can invest in specific projects, often residential, acquiring fractional ownership. This allows for potential influence on project management and the opportunity for returns through rental income and potential property value appreciation.
Alternatively, REITs are established companies that own, operate or finance income-generating real estate properties. Investors indirectly gain exposure by purchasing REIT shares traded on stock exchanges. Returns typically come in dividends distributed by the REIT and potential share price appreciation.
Another important difference between the two is diversification. Dubai real estate crowdfunding platforms typically focus on individual property or project investments. It could expose investors to the risks and rewards concentrated within that specific asset.
Conversely, REITs generally hold a diversified portfolio of properties across various geographic locations and asset classes, offering a broader risk-reward profile.
DOES THE DUBAI GOVERNMENT HAVE A CROWDFUNDING PLATFORM?
Yes, DubaiNEXT is a non-profit, digital crowdfunding platform launched by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai. The platform aims to support the SME sector and provide innovative financing for entrepreneurs and startups.
This concludes our list of the best real estate crowdfunding projects in Dubai. Anyone, including expats, can participate in these projects. Real estate investments are expensive, and the multiple costs of buying property in Dubai are worth considering. If you cannot pay for a property in full, you can apply for a mortgage to fund the purchase.
If you’re an expat looking to invest, you must be familiar with all the rules and regulations associated with property transactions. Similarly, explore the complete guide to foreigners buying property in Dubai to understand the process, documentation and other steps.
