31 August, 2020
Fractional Title Deed Programme to Boost Hospitality Sector
The Dubai Land Department (DLD) announced the launch of a fractional title deed programme to provide lower investment options for property owners and boost the hospitality sector.
The global economic situation has been affected in 2020 due to the pandemic, and Dubai hospitality sector was also facing stiff challenges. The second quarter in particular has faced difficulty in growth for the hospitality sector. Occupancy was 52% lower and the daily room rates were slashed by 17% compared to last year for the corresponding period ending May.
Under the fractional title deed, small property investors would be able to own up to 50% in a hotel or up to 25% in a serviced apartment. The fractional ownership refers to a title deed that secures investment ownership for the fraction, and is not a time-share based ownership limited to the duration of usage.
DLD also confirmed that there would be no minimum investment limit under the fractional title deed model.
Apart from encouraging investment in the sector, the move is also expected to ease burden on the transfer fee transactions. Under this programme, the buyer would pay the transfer fee only on the ownership share and not on the entire value of the property.
Source: The National