A new company, Shard, is introducing a co-ownership model for luxury properties in Dubai, offering fractional ownership starting at Dh200,000. Launching on July 1, Shard allows investors to own 1/8 of a property, with each co-owner’s name on the title deed.
How It Works
Investors or end-users can use the property for 44 days each year for personal use or rental income. István Juhász, CEO and co-founder of Shard, explained that each property allows only eight investors, who can either rent out or use the property for staycations. Properties listed on Shard are off-market and posted on the website for up to three months, depending on interest.
“The co-ownership model reduces the burdens of sole ownership, such as large financial outlays, complex paperwork, and property maintenance,” said Juhász. Shard is the first platform to bring this model, popular in the US, Europe, and Southeast Asia, to the UAE.
Property Listings and Costs
Shard’s listings include apartments and villas, such as a Palm Jumeirah mansion with shares costing nearly Dh5 million. Prices include all charges, such as the Dubai Land Department (DLD) fee, legal fees, trustee fees, and agent commissions. Utility bills are paid on a pro-rata basis, with fixed costs shared equally among the eight co-owners.
Investors can schedule their stay through the Shard app, similar to booking hotel rooms. “There are limits on the number and length of stays due to the involvement of eight people per property,” Juhász noted. Bookings can be made two years in advance, but consecutive Christmas bookings are not allowed to ensure fairness.
Exiting the Investment
The fractional ownership model offers high liquidity, allowing stakeholders to sell their share at any time and price. “The sale will first be offered to the other seven co-owners and Shard. If there is no interest, it goes to the open market through the Shard platform, and the seller can also bring a buyer. However, Shard will conduct a mandatory KYC & AML check on the buyer,” Juhász added.
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 with nine properties available for sale.
“We have adapted best practices from co-ownership models worldwide, including the US, Mexico, Europe, and Asia, to create a system tailored for Dubai,” said Juhász.
