Smart Crowd closes funding for fourth transaction at Marina Diamond 1

Smart Crowd has closed funding for its fourth transaction at Marina Diamond 1 in Dubai Marina. The property was funded with 15 investors out of which 9 were repeat investors, and an average investment amount of AED 32,000. The studio apartment is located in the prime residential and leisure destination of Dubai Marina with quick access to the Marina waterfront, surrounding bars/restaurants, shops and a 5-minute walk to the metro station making it a popular holiday and residential rental.

The unit is currently tenanted under a long term rental agreement until August 2019, making it an income generating investment with an expected net yield of 7.6% compared to market gross yield of 8-9% in Dubai Marina. Th unit is going to be converted into a holiday home with prospects of generating 20-30% above market rent through short term offerings.

According to a recent article in Bayut, Dubai Marina remains one of the most highly demanding areas for renting apartments in Dubai. Therefore, the Marina Diamond 1 is a lucrative, affordable investment option for investors.

Source: Bayut

UAE real estate investment offers one of the best returns

According to a recent report by real estate consultancy CBRE, Abu Dhabi and Dubai offer one of the best returns on investments in real estate. Abu Dhabi in particular can get investors higher average returns than some global cities like Hong Kong, London and Singapore. Read the full article here.

Crowdfunding opens access to a new generation of property investors, reviving the real estate market

While real estate remains one of the best asset classes for investments, you may have noticed a trend in recent years – fewer people are purchasing properties in the UAE. The regional real estate market has softened recently, with Dubai and Abu Dhabi residential markets down by 23 per cent and 18 per cent respectively since 2018. Nearly 27 per cent of expats feel that they are financially restricted, a sentiment that is likely contributing to the low transactions we are seeing in the real estate market today.

Even international investors seem to be holding off – with the strengthening of the US dollar, investors from countries like Russia, India the UK and across Europe are facing affordability issues, and everyone seems to think they just need a bit more time to save up funds to buy a property. With low transactions in the market and prices falling, however, the time to purchase property in Dubai is now.

If you too are considering buying property in Dubai but keep telling yourself “one more year of saving” you are in good company. Research shows that 37 per cent of expats have the desire to invest in the UAE real estate market, but feel they simply can’t afford it. The fact is that you may be missing out on a golden opportunity. While the risk-averse are holding off, savvy investors are looking at new ways to break in to this buyers’ market and why wouldn’t you with new governement regulations such as the 10-year work visas and retirement visas on offer?

While purchase prices have fallen by 10 – 20 per cent across locations, rental yields have improved, with net yields growing from 7 per cent upwards. As Expo 2020 sets to welcome millions of visitors (who are all potential renters) and, the recent upturn in institutional investments, all signs point to a booming future for investors who strike while the iron is hot.

Still, for many, the purchase of a property seems daunting. Enter crowdfunding. The same trend that turned financing and fundraising on its head is injecting new life into the regional real estate market. Crowdfunding allows groups of people to invest in real estate on their own terms, making real estate investment accessible to a new generation of property buyers.

Investing in UAE properties through crowdfunding lowers traditional barriers to entry and allows buyers to diversify their investments and expand their investment opportunities. By removing obstacles like unaffordable upfront costs and spreading out investment risks, crowdfunding could be the key to reviving the regional real estate market.

This new class of crowdfunding real estate investors are banding together to break into the market, and they are quickly reaping the benefits. With upfront investments as low as AED 20,000, collecting on Dubai rental properties is no longer limited to the wealthy. With crowdfunding booming worldwide, this new trend is bringing new life to the Dubai real estate market. So, if you have been in the “one more year of saving” club for too many years in a row, crowdfunded real estate investing could be your chance to take advantage of this buyers market.