UAE, Dubai: As the UAE’s real estate sector continues to show green shoots despite the coronavirus pandemic disrupting markets elsewhere, the country today sees the launch of Stake based in DIFC’s FinTech Hive. Regulated by the DFSA, Stake is a digital social-investment platform providing a simple, affordable and transparent way to invest in income generating properties.
Led by co-founders Rami Tabbarra, formerly the Senior Vice President of Sales at DAMAC and a founding member of The First Group, and Manar Mahmassani, ex-Managing Director at Falcon Group and Vice President at Deutsche Bank, Stake seeks to fix the problems of real estate ownership by democratising property investment in the UAE.
With property investment usually the preserve of the wealthy, young people are blocked from getting on the housing ladder due to large capital requirements. At the other end of the spectrum, veteran investors have been burned by project delays, no completions or unsuitable investments with low yields.
Stake seeks to remedy these issues. The platform provides users with the opportunity to buy stakes in pre-vetted residential properties for as low as AED 2,000. Each investor is then issued shares in a DIFC company proportional to their ownership in the property and receives their share of rental income in the form of quarterly dividend distributions.
Commenting on the launch Rami Tabbara, Co-founder at Stake, said: “The UAE real estate market is ripe for change. The current model of real estate investment is no longer fit for purpose. It’s either exclusionary for the young or it falls short in delivering attractive returns. We grew frustrated at hearing the horror stories about Dubai property investment, so we set out to change it.
“As an experienced investor in prime real estate focused on delivering sustainable and reliable yields, and backed by robust investment processes, technology and expertise, Stake is providing investors with a credible, trusted and simple alternative. Our solution will deliver on its commitments and provide inclusive investment options to suit all types of investors.”
Stake’s assets focus on prime locations where the rental demand is high and the long-term fundamentals will be a strong driver of capital appreciation from today’s decade-low price point. For Stake’s management, the leading indicators signal that the market is at or near the bottom of its current cycle, presenting the opportunity to buy quality assets at attractive discounts generating long term value, limiting downside risk, and offering the potential for capital appreciation
Manar Mahmassani, Co-founder at Stake added: “We are extremely selective with the investments we choose to present on our platform, and only offer prime assets which have the potential to deliver attractive returns on both rental yields and eventual capital appreciation. With market conditions under pressure, now more than ever an investor needs to work with a reputable platform like Stake to sift through the noise and get the best deals. We also manage the whole process end to end, from acquisition, company incorporation, dividends and exit. Investors just sit back and collect their income and watch their portfolio grow. It’s a win-win situation.”
With its focus on the investor’s best interests and in providing transparency, simplicity and reliable returns Stake aims to be the preferred investment platform of choice for local, regional and international investors looking for exposure to Dubai’s prime real estate market.
Despite Covid-19, 22,779 real estate transaction were recorded during H1 2020, representing a total value of $19.7 billion. The majority of these (18,463 or 81%) were investments completed by 14,688 investors and worth $8.7 billion[1]. Recent Q3 figures from the Dubai Land Department also underlined the buoyant prime residential market for investors. More than 2,297 apartments and 438 villas were transacted during Q3 2020 in the Dubai prime residential market, marking a 24% increase in the overall number of units sold quarter-on-quarter. The total volume of transactions in the prime residential market climbed 49% quarter on quarter to $2bn in Q3 2020, compared to $1.36bn in Q2 2020.
The Stake platform already has active properties available for investment on its website.
[1] DLD report - n H1 2020, 2,895 GCC investors concluded 3,712 investments worth Dhs6 billion, while 1,839 investors from the Arab region finalised 2,203 investments worth over Dhs3.2 billion. There was a marked increase in the number of foreign investors in H1 2020 from the same period last year, with 9,213 investors concluding 11,240 investment deals worth over Dhs16.2 billion
© Press Release 2020
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