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Fri 13 Feb 2015 10:08 AM

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Crowdfunding concept offers Emaar's Old Town Island to investors

DURISE says investors can invest as little as $5,000 to own part of prestigious property at Souq al Bahar

Crowdfunding concept offers Emaar's Old Town Island to investors

A crowdfunding concept launched recently in the Gulf region has said it is seeking investors in one of the emirate's most prestigious buildings - Old Town Island at the Souq al Bahar.

Property firm DURISE said investors are able to invest in the real estate asset via the crowdfunding concept for as little as $5,000.

The concept targets potential investors who flirt with the idea of investing in real estate - such as younger and first time buyers - who abandon the idea because they find they have been priced out of the property market.

Developed by Emaar Properties, Old Town Island at the Souq al Bahar is the first property to be offered to investors with the purpose to raise enough funds to buy it.

After purchase, a third party, such as DURISE, manages the property funded on behalf of the crowd. This gives real estate investors the chance to diversify their portfolios and reduce their risks, a statement said.

The crowdfunding industry has grown to be over $5.1 billion worldwide in 2013 and expected to double annually, the statement added.

DURISE, which announced plans to launch the concept in the Gulf region in October, said it would refund investors their capital in its entirety in the event the crowd does not raise the total funds for the property of their choice.

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Ahmed AL-Hassoni 4 years ago

There is a positive and a negative side to this.

Positive side would be that any one could be a real estate tycoon starting an investment as low as 5,000 dollars and owning a part of the development. Which is probably the only positive I can see about this. Liquidity?

Assuming you own a part of the real estate/development
The Negative side, you have many problems here. Also, need to be pointing out the mystery and risks.

1. You need to know who is the person/organization incharge with your money and knowing their background (trust)
2. How much is the person incharge taking as a comission?
3. Who is the lead investor?
4. How long till you get your money back? 3 - 10years or more?
5. What kind of finance options are available?

Be risky at work and save at your investment.

AbdulAziz Abdun 4 years ago

@Ahmed Al Hassoni

All i hear you talk is Who is in charge of Who , lets face reality .Emaar is a very well known Real Estate . Made wonders if not miracles to its share holders .Crowd-funding is an amazing concept where it can be a win win situation.Besides Your pocket should speak on behalf of you , What is the essential thing a investor needs to know is :- the construction site an attractive spot for the Public in return for a profitable Invest .
2. How well or bad is the property market performing now.
4. How much are you willing to chip in .

Sajjad 4 years ago

This bit of information speaks volumes on the current market

Noor 4 years ago

Similar concepts have been very successful in the States and UK, it gives everyone the opportunity to invest in real estate and put their eggs in multiple baskets without getting a loan.

I'm curious to see how this company will do and hopefully they will have a positive effect. It would be good to have the government and large developers supporting these initiatives to give that extra push, as its time for the real estate market in the Middle East to modernize. This is definitely a good start.