Dubai Land Department (DLD) has introduced a new Fractional Ownership Framework that will allow several people to jointly own one property in Dubai.

The new model should make the real estate market more accessible to private investors and buyers who previously could not afford properties in premium areas of the city.

What's changing

According to the new system:

• up to 10 people will be able to buy one property together
• ownership will be officially registered through the DLD
• shares, rights and obligations will be specified for each co-owner

The mechanism applies to both residential and commercial properties.

How the system will work

All transactions are planned to be carried out through the DLD digital infrastructure and the Smart Trust blockchain system.

This will allow you to:

• record each owner's shares
• automate revenue distribution
• make it easier to buy and sell shares
• ensure transparency in transactions

Standardized legal agreements will also be used to regulate:

• property maintenance
• rules for using the property
• cost sharing
• exit procedures from joint ownership

Who is the new model being created for

The system focuses primarily on:

• young investors
• international buyers
• private investors with limited budgets
• people who want to diversify investments

In fact, the expensive real estate market is becoming more affordable without the need to buy the property in full.

Which districts can benefit the most

It is expected that the new format will be especially in demand in areas with high housing costs, including:

• Downtown Dubai
• Dubai Marina
• Palm Jumeirah
• Business Bay

In these locations, individual apartments and apartments are often too expensive for a single private buyer.

Why Dubai is betting on fractional ownership

The authorities consider the model as part of a strategy to develop a more flexible and modern real estate market.

The initiative is in line with the objectives of Dubai Economic Agenda D33, which is aimed at:

• attracting international capital
• development of the digital economy
• growth in investment activity
• creating new forms of asset ownership

What this means for the market

The new system could change the approach to real estate investments in the region.

She is expected to:

• will increase the number of deals
• will expand the range of investors
• will increase market liquidity
• will accelerate the development of proptech services

In addition, DLD plans to allow special licensed platforms to operate through which investors will be able to buy and sell shares in properties.

A new phase for Dubai's real estate market

Fractional ownership is already actively developing in the US, Europe and Asia, and now a similar model is emerging in the UAE.

For Dubai, this is another step towards digitalizing the market and creating more flexible forms of investment aimed at a global audience.