Real estate is the low volatile asset class that delivers sustained cash flows even in turbulent times. The Stake is a Dubai-based real estate investment platform that offers a viable alternative to invest in properties in Dubai and get recurring income. The company has raised a $4 million seed fund led by Combined Growth Real Estate, with other participants including Vivium Capital, Lama Holding, UK-based Chalgrove Properties Limited, and others.
The company, which was formed in December 2020, has received tremendous traction as the industry has begun to boom. According to Morgan Stanley research, the rise in real estate prices has occurred after six years due to high demand and fewer projects since 2017. In April, there was a 1.2 percent month-on-month increase in residential value, which is the highest in the index in the last six years.
The company simplifies the process by using convenient and easy-to-follow steps. Investors can open a stake account, deposit funds in a segregated bank account, and then trawl for and invest in opportunities. The company will handle all of the property’s documentation, monitor the valuation and cash flows, handle registration costs, running expenses, service charges, property management fees, and so on. The company offers investments for as low as AED 2,000 and credit of AED 200 for the first registration.
The company will utilize the funds to optimize the platform with innovative products and services, invest in the marketing and sales division, and build a strong team. The Stake wants to align property sourcing, technology, and operations as per the firm’s vision.
The company comes in a time where digitization is playing a pivotal role in businesses. It promises the users a safe and cost-efficient platform for various investment units in Dubai Marina, Downtown Dubai, and soon DIFC and City Walk. It serves as a practical solution to purchasing a property outright with a hassle-free online experience that establishes a secure and reliable passive income source.
More than 300 users have invested $1.5 million (total) in the properties on the platform since the inception. More than 4000 registered users spread across 54 nations and a 30% month-on-month increase in sales. As they advance, the Stake will seek strategic partners, regulators in the Kingdom of Saudi Arabia and perhaps also expand its footprint in the UK.
The co-founder Rami Tabbara said: “Our shareholders believe that in today’s world, there is a much better way of investing in real estate. Through Stake, we will enable anyone to participate in this asset class in an easy, transparent, and digital way. The fundraise allows us to build the go-to digital real estate investment platform for Dubai property and, eventually, the region. We are focused on bringing the best property investment deals to our clients.”
According to Real estate consultancy Knight Frank, this year, with new supply intensifying online with nearly 83,000 residential units in Dubai, up from 35,808 last year, is reaching “historic levels,” while as per Asteco, almost 41,500 up from an estimation of around 34,050 in 2020.
