SmartCrowd, a UAE-based digital real estate crowdfunding platform, has introduced the MENA region’s first-ever secondary sales market, allowing investors to buy and sell their property shares securely.
A much-anticipated addition to the SmartCrowd platform, the aim of the secondary market is to provide more liquidity to investors who wish to exit property investments early, as well as give investors the chance to purchase shares from other investors in high-performing properties.
The secondary market, set to be operational twice a year, was introduced in August 2022 following rigorous tests to guarantee the optimum experience for its consumers. Sellers realized an average total return of 21.1 percent comprising both rental income and capital gains from their exits. Buyers also took full advantage of this opportunity, outnumbering sellers 2.3 times over.
“The success of our secondary market shows that those in need of liquidity can access their funds more readily, while investors looking to increase their exposure are able to buy shares in a convenient, transparent manner. Our secondary market structure offers investors more control, allowing them to manage their portfolios and plan their exits more appropriately. More importantly, it’s never been done before in the region, so being the first one to make this possible is a major milestone for our organization. We fundamentally believe this is the future of real estate investing and encourage everyone to become part of the SmartCrowd community.”
The company recently recorded its first exit on a Dubai Marina property that delivered 39.25 percent total returns over 17 months, demonstrating a complete investment cycle. Upon the successful launch of the secondary market, SmartCrowd has proven that liquidity is possible for investors looking to access their funds, though past results are not indicative of future outcomes.