No investment is too small to invest in Dubai, US, UK and Europe

UAE residents no longer need millions of dirhams to invest in major real estate markets and build a portfolio as they soon will be able to own a property in US, UK and Europe with a small investment, Khaleej Times has learnt.

As residents can invest as low as Dh500 in growing Dubai real estate, earn a rental income and enjoy the benefits of price appreciation of the property, soon they will be able make similar low-budget investments in developed markets as SmartCrowd will expand its platform to major cities in the US, UK and Europe.

Siddiq Farid, chief executive and co-founder of SmartCrowd, said his platform is gaining popularity and plans are on the cards to expand his innovative initiative to the US and European markets in near future.

"We have just been focused on the local UAE market but very soon we will be marketing our platform to surrounding markets allowing them to invest in Dubai properties," Farid told Khaleej Times.

"In next stage, we intend to provide international real estate on the platform allowing our investors to purchase in UK, Europe, US and other developed markets. The opportunities are endless and we are very excited how big this platform can become," he said.

SmartCrowd, the DFSA-regulated property investment and technology platform, in September announced the lowest ever entry point for investing in the Dubai property market. It offers a range of investment opportunities to invest as low as Dh500 in prime areas like Dubai Marina, JBR and City Walk.

Benefit to all income groups

Ata Shobeiry, CEO at Zoom Property, said SmartCrowd funding can benefit people of all income groups to build wealth. He said people can now look for investment options beyond buying bonds or stocks with SmartCrowd platform.

"The initiative opens up new avenues for them to build wealth as they can put their hard-earned money to good use and become a part of the ever-growing Dubai property market. Foreign investors will also capitalise on this opportunity. This will ultimately benefit the economy," Shobeiry said.

Yousuf Fakhruddin, CEO, Fakhruddin Properties, echoes similar views and said the innovative platform gives a new dimension to real estate investment in this part of the region.

"I think 'Innovation and sustainability is at its best in UAE' and SmartCrowd platform proves it.

He said fractional ownership has been a proven concept in UK and Europe, but this incredible way of making property accessible in an international hub like Dubai would add a whole new dimension to real estate investing.

'While the demand for real estate has remained positive in this part of the world even during the pandemic, it is affordability that was becoming an issue as not everyone can afford investment of such magnitude in UAE. With an opportunity like this where an aspirant can own a property in Dubai for as low as Dh500, the masses would benefit greatly, and it will also help bring in a fresh momentum for the economy and open up to a new segment of buyers," he said.

"Such new disruptive opportunities of real estate investments would make investments in the Real estate sector smoother and more viable for the masses. This is a big step towards making one’s dream of owning a property in Dubai a reality, without burning a hole in their pocket," Fakhruddin said.

Due Diligence is a must

Ayman Youssef, vice-president, Coldwell Banker, UAE, said this concept in real estate is great for those who cannot afford to enter the market but want to invest. However, clients need to do their due diligence before making any decision.

"The intended buyers need to be aware of the fee structure of the company they choose to invest through. Are there any hidden costs to enter, operate and exit? They need to know the ownership structure -- are they owning shares in a company that owns a specific asset or are they investing into a pool of different assets.

"What are exit options - if you invest in this real estate investment, what are the terms for exit? Ask important questions like - if there is no buyer for your share, will you still be able to exit when you need to or will you be stuck with the investment?" he said.

Youssef futher advised the potential investors to make sure that asset has an upside growth potential after covering service charge and the company fee.

"If invested with the right company, there is tremendous upside to this concept. It will open doors to people who cannot afford normal investments," he said.

Easy to use platform

Farid said the platform is very easy to use. "We are a financially regulated platform with the DFSA so you have to create an account just like you would with a bank or brokerage firm. Once your account is verified you will have access to our investment platform and the available properties," he said.

Elaborating, he said these opportunities are pre-vetted and screened using 100 data point proprietary tool. The investor than decides which properties they want to invest in and how much – from as little as Dh500. "That’s it! From that point we take care of the rest, including setting up of the shares. From start to finish this takes between three and five weeks. You then start earning regular rental income that is deposited in the investor digital wallet -- this can be withdrawn anytime or re-invested into other properties," he said.

Fully compliant with DLD rules

He said SmartCrowd is fully compliant with Dubai Land Department (DLD).

"Once the funding is complete we set up a DIFC company in which the investors are allocated their shares proportionate to their investment. This DIFC company then registers with DLD before purchasing the property," he said.

"The investors have full legal recourse on their ownership on the property. They are listed as shareholders in the company on the DIFC public register and the same information is registered with the DLD," he added.

Offering good returns

In reply to a question, Farid said the platform is gaining ground and attracting small investors as well as some reputable names in the industry.

-- muzaffarrizvi@khaleejtimes.com