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Dubai’s SmartCrowd entices wealthy to invest $54,459 in real estate

Crowdfunding platform promises higher returns on property investments 

Real estate crowdfunding platform SmartCrowd is capitalising on the growing high-net-worth individual (HNWI) population in the Gulf Cooperation Council (GCC) region with the launch of its new premium service that requires a minimum investment of 200,000 dirhams ($54,459).  

The Dubai-based company, established in 2018, said its new premium service will help wealthy investors generate higher returns.  

Last September, the company announced it would allow investors to invest as low as 500 dirhams to own their share of Dubai real estate administered by the company. Investors can choose how much to invest and receive the equivalent proportion of revenue.

CEO and founder Siddiq Farid said the platform is able to generate higher returns in the booming market and allows greater flexibility for investors. 

“Firstly, from a risk-adjusted basis, it is intelligent and sensible to diversify. In fact, risk management, diversification and capital preservation become more important the more capital you have,” he said. 

According to research by Boston Consulting Group (BCG), there are now 144,959 people with a net worth of between $1 million to $100 million and 115 individuals with $100million or more in the GCC.  

The company, which is regulated by Dubai Financial Services Authority (DFSA), said it has so far attracted 20,000 users, and that its returns on properties have historically been up 50 percent, higher than market average. So far, investors have received around 1.5 million dirhams in rental income. 

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021


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