Four risks, and the one question to ask first.

The four risks of owning a fraction of a Dubai property: liquidity, valuation, platform failure and concentration, and what each exit route really means.

Liquidity

You can only sell when someone wants to buy. A secondary market on a platform is a place where that can happen, not a promise that it will. Ask what the average time to sell has been and how the platform sets the price when there is no buyer.

Valuation

A fraction is worth a share of what the property is worth, and that number comes from a valuation the platform commissions. Ask who values it, how often, and whether you can see the report.

Platform failure

If the platform stops operating, what happens to the vehicle or the tokens that hold your share? Ask what rules cover cash you have sent and who holds it, and ask separately what covers the property and who would administer it.

Concentration

A fraction of one flat is one flat's risk, in one building, in one market. Small tickets make it easy to hold several; they do not make one holding diversified.

Questions people ask

Is my money protected?

Ask a DFSA-licensed platform what rules cover cash you have sent and who holds it before you rely on any answer you assume. The value of the property itself is not protected by anyone.

Sources

All fractions guides