Crowdfunding concept offers Emaar's Old Town Island to investors
A crowdfunding concept launched recently in the Gulf region has said it is seeking investors in one of the emirate's most prestigious buildings - Old Town Island at the Souq al Bahar.
Property firm DURISE said investors are able to invest in the real estate asset via the crowdfunding concept for as little as $5,000. The concept targets potential investors who flirt with the idea of investing in real estate - such as younger and first time buyers - who abandon the idea because they find they have been priced out of the property market. Developed by Emaar Properties, Old Town Island at the Souq al Bahar is the first property to be offered to investors with the purpose to raise enough funds to buy it.
After purchase, a third party, such as DURISE, manages the property funded on behalf of the crowd. This gives real estate investors the chance to diversify their portfolios and reduce their risks, a statement said.
The crowdfunding industry has grown to be over $5.1 billion worldwide in 2013 and expected to double annually, the statement added. DURISE, which announced plans to launch the crowdfunding concept in the Gulf region in October, said it would refund investors their capital in its entirety in the event the crowd does not raise the total funds for the property of their choice.
