United Arab Emirates-based real estate brokerage and management firm DURISE recently announced that it would soon be launching its crowdfunding scheme for property investors in Dubai and other countries in the Middle East.
The alternative investment business model enables investors, particularly younger and first-time buyers, to invest in real estate for as little as USD5,000, ArabianBusiness.com said, explaining that while investors may not be purchasing their property outright it is a first step towards owning a percentage of the property.
“The makeup of the Middle East is overwhelmingly young, which translates into technology savvy investors who are comfortable with technology and the concept of crowdfunding,” said Waleed Esbaitah, CEO of DURISE.
Although a relatively new concept, Fundweb.co.uk mentioned that there are already 30 dedicated real estate platforms aside from existing platforms expanding in this area.
According to supporters, real estate crowdfunding gives borrowers cheaper, easier and real-time access to capital with opportunities available online 24 hours a day, which they can control.
Meanwhile, Roman Rosario, co-founder of RealCrowd online real estate platform, told GlobeSt.com that the average investment per deal is increasing with his company’s previous average of USD70,000 per investor having climbed to the USD90,000 to 100,000 range.
Looking ahead, Rosario expects online syndication and crowdfunding space to become mainstream in 2015 with the industry seen to raise USD10 million a month and having the potential of being the fastest industry to reach USD100 million a month.
Previously, Singapore-based CoAssets announced that it is taking its real estate crowdfunding event to Hong Kong next year, after staging a successful show in Singapore last July, which received an estimated USD16 million in pledges.
Image credit: ArabianBusiness.com