The Dubai Land Department (DLD) is expected to introduce an emirate-wide model of ‘fractional title deed’ in a bid to draw small investors towards the segment of hotel apartments.
The new proposal, recently announced by DLD’s Registration and Service Sector, aims to attract investment into the hotel or serviced apartment projects in Dubai, which is one of the best destinations worldwide for tourism.
A fractional title deed refers to the division of the same entity into two or four fractional shares, each with its own title deed which may be transferred, sold or mortgaged like any other property.
A DLD spokesperson confirmed that the initiative is currently in its pilot phase for one project, and is looking forward to having more projects like these following the initiative’s full implementation.
He added that this kind of ticket-size investment will be affordable for all types of investors. Further, there is an added advantage because as per the DLD’s laws and guidelines of property registration, a fractional title deed may be registered under anyone’s name.
The hospitality industry of Dubai is among its prime income generators, as tourism draws a huge market for the nation. The hospitality sector is currently implementing various strategies in order to stay competitive.
Industry stakeholders said the UAE has adopted a comprehensive plan to handle the pandemic with the main focus being to safeguard the safety and well-being of its citizens, residents and tourists who have started arriving from July 7, a move that will improve the path to recovery for the tourism sector and increase the occupancy of hotel apartments.
Meanwhile, Dubai Tourism said hospitality players are being forced to swiftly reinvent their business models to retain their place in this rapidly changing travel landscape.
The demand for global flights has continued to rise since the beginning of June resulting in increased seat numbers.
Global carriers added 8.2 million seats, according to OAG Aviation Worldwide, which is the greatest rise in seat capacity since the outbreak.
OAG is an air travel intelligence company that provides accurate, timely and actionable digital information and applications to the world’s airlines and other travel-related service institutions.
A significant positive demand for Dubai visits is likely for the next three months as an upward trend in the global seating capacity has been observed. Moreover, incentives are being offered by Hotel Apartments to boost the business.