Dubai: Why women are teaming up to buy property together
When working professional Sarah wanted to purchase a two bedroom apartment in Downtown Dubai, she knew she couldn’t afford it alone. So, she pooled in her resources with her friend Nadia to afford a property in the prime location. The women, who are in their 30s, now live together and share the mortgage and maintenance costs.
They have become part of an increasing number of women who are joining forces with their friends and family to invest in property in the UAE. Some choose to live in it together while others opt to rent it out and divide the income amongst themselves. According to Zarah Evans, Managing Partner of Exclusive Links Real Estate, there are several reasons why women choose to do this.
“Economically, pooling resources makes home ownership more accessible and allows for entry into the market sooner,” she said. “Socially, women value independence and strong bonds with friends, making shared ownership appealing. Gender dynamics also play a role, as women often discuss financial plans and include friends in their decisions, fostering inclusion and togetherness.”
She said the trend highlighted collaborative living and mutual support among women.
Inclusive market
It is important to nurture this trend here in the UAE, said Jeff Raju, CEO of Manifest Real Estate. “Encouraging these trends is crucial for fostering a more inclusive and dynamic real estate market,” he said. “My female clients often collaborate with family members, friends, or business partners to pool their financial resources. This collaboration allows them to invest in higher-value properties or diversify their investments.”
He said that when women join forces to purchase properties, they benefit from shared financial responsibility, diverse expertise, and combined investment power.
Lakshmi (name changed to protect privacy) bought a property with her cousin for the first time, three years ago. “At the time, we were buying smaller apartments and studios,” she said. “This year, we took the plunge and invested in an an off-plan semi-detached four bedroom villa for Dh3.4 million in Dubai South.”
According to the 25-year-old Indian expat, it was her partnership with her cousin that enabled her to expand her portfolio considerably. “If I had been investing alone, I would never be able to afford the places I did,” she said. “With the returns on the smaller investments, we were able to save up enough to make this big investment. We have not yet decided whether we will live there or rent it out but most likely, we will rent it out.”
Advice for investors
Despite the positives, Evans cautioned that it was important for women to have clear agreements and legal contracts in place when buying property together. “Discuss and document each person’s financial contributions, responsibilities, and plans for future property management or sale,” she said. “Open and honest communication is key to maintaining a healthy partnership.”
She added that it was possible to buy property in joint names in Dubai and buyers should take advantage of it. “You can also define the percentages held by each investor,” she said. “This breakdown should be specified and will be stated on the title deed issued by the Dubai Land Department upon completion of the transfer. Typically, the percentage share of ownership reflects the ratio of financial investment by each party.”
The future sale of the property should also involve all parties. “If one or more joint owners decide to sell their shares in the property, all joint owners must consent to the sale,” she said. “To address this situation, consider establishing a collective investment agreement to outline the process for selling shares and ensure all owners are protected and in agreement.”
Emerging trend
This trend of women partnering to buy property is fairly new. “It has been gaining momentum over the past five to seven years,” said Evans. “The pandemic further highlighted the benefits of secure housing and stable investments, accelerating this trend. Additionally, as rental prices continue to rise in Dubai, many tenants are opting to buy instead. If friends can rent together, why not buy together?”
She said the price point of these purchases were usually too high. “It typically ranges from Dh1 million to Dh3.5 million,” she said. “These investments are often influenced by the convenience of location, particularly areas close to where they work or socialise. Women typically invest in apartments when buying properties with friends, using this as a stepping stone and eventually make their next purchase independently.”
She gave the example of three female friends who rent and work together in Dubai Marina. “Not being able to afford Marina as their first investment, they pooled their resources and invested in an apartment in Jumeirah Village Circle,” she said. “They listed the property with us for rent and property management and it is currently generating an addition income stream for them all. Their investment has appreciated in value, and with our advice they plan to use the rental income to fund future property investments.”
