A popular option for businesses, crowdfunding is now being considered as a possible option in real estate, Gulf News reported.
Guernsey-registered Mayfair & Morgan Ltd (M&M) confirmed that initial talks have been held with a Dubai-based developer to explore the possibility of an online fund sourcing platform.
“The developer has a funding requirement of $6 million [Dh22 million] for one of his projects, and together we are reviewing whether crowdsourcing is a viable option to pull in that level of investments,” said Paul Skillen, CEO of M&M, which has offices in Dubai and London. “In the US and UK, crowdfunding related to real estate have been growing exponentially and at some point will make its mark in the UAE.”
Local and regional markets have been witness to heightened crowdfunding activity, whereby businesses eschew traditional resources such as banks or private equity to pitch their credentials to a wider audience. All of the transactions are done over the web, and the “investor” gets to acquire a stake in the venture at a relatively smaller price. For the business, success would be defined as being able to tap into a sizable “crowd” of investors and get the funds that it had its eyes on.