FAQs

Fractional ownership is a law adopted by the Government of Dubai in 2019 that allows a number of people to own one property without kinship or acquaintance, for an investment purpose, as their names are registered with one title deed, and each person based on percentage of their ownership in the unit.
That is said, Athr Real Estate, in cooperation with vacation homes companies, has proposed the idea of dividing the ownership of a property owned by the vacation homes into five shares, with the value of each share being 20% of the total value of the property, and the shares are sold through Athr being specialist in real estate brokerage.

Yes, that's right your name and the name of all owners.

No, only four shares will be sold and the fifth should be held by the vacation homes to manage the property and protect the rights of other investors.

25 ready units and under construction apartments.

Yes, given that the demand for this type of ownership is very high. Holiday homes will be able to expand and increase the number and variety of properties owned by them, and this is in the interest of the customer, whether the investor (by operating the property and providing the required returns) or the tenant (by providing a variety of properties in different locations in Dubai)

Currently, vacation homes own 25 apartments, and by the end of 2021 it aims to reach 150 apartments, and 300 apartments by the end of 2022.

One of the most important benefits is the peace of mind and reduce the effort, as it is well known that if a property is purchased for investment, the investor should look for an operator or a tenant for the property in addition to caring for maintenance of the property, paying government fees, and following up and collecting rents. All this takes time and effort. But when one of the partners is specialized in the field of property management, they will do all of the above tasks on behalf of the investor, free of charge, and even exempt him from service fees as well as providing guaranteed rental return.

It depends on the type of property and the planned payment plan, as the operating amount (rental return) pays part of the installments, while the investor cares about the other part. For example, if the property is ready, it should be operated for 6 years, but if it is under construction, the operation will be for of 5 years.

The contract is renewable, but after the specified period, the situation of the property should be considered,and the rental prices determined. Since the property is intended to invest in the long term, and by the vacation homes company owning 20%, it has the exclusive right to operate the property.

Yes, it is guaranteed by official contract.

Yes, you are entitled to do that.

10% of the value of the property annually, and it can be more than that in the event of cash payment.

Yes, you have the right to sell your share of the property at any time you wish. You only need to submit a letter addressed to the vacation homes requesting the sale of your share in the property, so three estimators will be tasked by the DLD to evaluate the property and approve the average sale price. Accordingly, the property will be presented to the partners if they want to buy the share offered for sale, and if they do not want, the property should be offered for sale in public. And if a buyer does not submit a proposal within 6 months of submitting the letter, the share is purchased by the vacation homes.

No, they don’t have to.

No, there is more than one easy payment method.

It depends on the property's readiness for operation. If that, the answer is yes, as the rental return is deposited in two installments per year against the investor’s account. And if the property is under construction, the period is calculated after receiving the keys and completing the operating procedures.

In the event that any of the investors defaults, the vacation homes company will acquire the share and deduct 40% of the value of the paid amounts and return 60% of the amount paid to the buyer. Example: If the value of the share is AED 300,000, and only AED 150,000 were paid, but the payment defaulted, and the situation was not corrected by the investor for two consecutive months, AED 60,000 would be deducted and AED 90,000 should be returned to the investor. The ownership of the share would be transferred to the vacation homes. This procedure was put in place in order to avoid investors paying any fines by the developer.

The five partners are the owners of the property with the benefits of rental returns.

It is given to the heirs by the Sharia (Islamic law) or based on the will of the investor.

The heirs are not exempted from paying the value of the share unless you wish to sell the share and inform the operating company of that to sell the share.