Now, 'own' a home on The Palm, Downtown for just Dh200,000

Dubai luxury

A new venture offering co-ownership of luxury properties in Dubai has been announced, allowing investors to "own" a home on The Palm or Downtown for just Dh200,000. The company, Shard, is set to launch on July 1, offering 1/8 ownership with each co-owner's name on the title deed.

Shard’s co-ownership model enables investors or end-users to use the property for 44 days each year, either for personal living or as an additional income source by renting it out. According to István Juhász, CEO and co-founder of Shard, each property will have only eight investors or stakeholders, who can choose to rent out or use the property for staycations. The properties listed on Shard are off-market, and if there is no interest within a month, they are removed from the website; if there is interest, they remain listed for up to three months.

The concept of co-ownership or fractional ownership is already popular in the US, Europe, and Southeast Asia. Shard is the first platform to introduce this model to the UAE’s booming real estate market, alleviating the burdens of sole ownership such as large financial outlays, complex paperwork, and property maintenance.

Shard has listed several apartments starting at Dh200,000, as well as villas, including a Palm Jumeirah mansion that costs nearly Dh5 million per share. The same rules apply to all properties and co-owners, regardless of price. The listed prices include all associated charges, such as a four percent Dubai Land Department (DLD) fee, conveyancer fee, legal fees, trustee fees, and agent commissions. Utility bills are paid on a pro-rata basis, meaning each co-owner pays for the period they stay in the property. All fixed costs are shared equally among the eight co-owners.

Co-owners can schedule their stays through the Shard app, similar to booking hotel rooms on platforms like Booking.com. However, due to the shared nature of the properties, there are certain rules regarding the number and duration of stays. Co-owners can book up to two years in advance but cannot book two consecutive Christmas holidays to ensure fairness.

In terms of selling their stake, the asset is very liquid, allowing stakeholders to exit at any time and at any price they choose. The sale first goes to the other seven co-owners and Shard. If none are interested, it goes to the open market through the Shard platform, with the seller also able to bring in a buyer. Shard conducts mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on the buyer. While the other co-owners have the right to buy, they cannot object to the sale; only Shard can refuse a sale based on KYC and AML reasons.

Shard has partnered with real estate agencies and proptech companies such as BetterHomes and Huspy to list and acquire properties in Dubai. The platform launches on July 1 with nine properties available for sale.

"We examined the best practices globally, including those in the US, Mexico, Europe, and parts of Asia," Juhász said. "We did not invent this from scratch; we looked at 15 other systems of co-ownership worldwide and created a system tailored for Dubai."

The innovative co-ownership model offered by Shard aims to make luxury property ownership more accessible and flexible, providing a viable alternative to traditional real estate investment in Dubai's dynamic market.