Getting on the property ladder can be challenging. Saving enough money for the deposit alone can be daunting, so many people consider the option of Fractional Ownership.
What is Fractional Ownership?
Fractional Ownership is a form of investment whereby a number of different investors can share in the ownership of a property
Fractional Ownership has been successfully implemented in other luxury assets such as jets and yachts. The concept was later adopted in properties.
With this arrangement, each owner will have an exclusive right of usage of the property for a specified number of days each year.
Side note: There is a difference between a Timeshare Scheme and Fractional Ownership. In a Timeshare Scheme, you will just have a right to use the property at certain times of the year, without having an ownership right of a property.
Is it recognized in Dubai?
Dubai has welcomed this concept and agreed to register this type of ownership by issuing partial title deeds. This will allow each investor in that property to have their rights recognized by the Dubai Land Department.
However, the Dubai Land Department says these partial title deeds will only be extended to hotels and serviced apartments.
So, if you are looking to own a property in Dubai and do not have the means on your own, then this could be a really great opportunity for you to explore.
This information has been provided by Arash Zad Lawyer: Real Estate Law | Corporate Law