3 Different Indirect Ways to Invest in Real Estate Equity in Dubai

You 100% heard about direct real estate investment in Dubai and the home loan approach,  what about the indirect ways to invest in real estate? Have you thought about getting involved in such an investment? In this article, we’ll deliver you a full guide on all types of indirect property investment in Dubai. Thus, you can make up your mind and determine the best investment track that suits your savings and financial plans. 

Here we focus on fractional real estate investment, regarding the growing equity method, not the interest on a debt. Let’s start this interesting money-making journey!

Direct vs. Indirect Ways to Invest in Real Estate in Dubai

While direct real estate investment in Dubai, or in any other major city, needs a relatively large amount of money, indirect investment is much different. Direct investment serves the goal of the purchase of a whole unit, whether it is residential, commercial, or even industrial. On the other hand, indirect investment is more about fractional ownership, where you purchase a part of a unit.

In terms of profit, direct investment delivers more revenue in the short term and long term. However, consistent indirect investment achieves high profits in the long term.

So, if you have savings that might cover an apartment’s initial downpayment, we surely recommend taking this step.

In this article, we’ll assume that your savings are suitable for the indirect strategy, in other words, fit other ways to invest in real estate with little money . That’s why we’ll detail every type to help you choose the best.

1- Dubai Real Estate Investment Trusts (REITs)

REITs are the best investment opportunities for new and small investors in Dubai. With real estate investment trusts, you can enlarge your portfolio of properties by buying shares in units, regardless of their type, through a corporation. Here, a corporation uses your money as an investor and turns it into part of the income properties it buys and manages. That’s more popular equity REITs.

Pros

1- High Liquidity

It’s a type of trading on stock exchanges. So, you can buy and sell REITs easily without consuming much time, like in the case of physical real estate.

2- Available Passive Income

You’re dealing with a stock exchange market. So, you expect that the REITs achieve profits, part of which is distributed among the stakeholders as dividends, forming regular income.

3- Diversification

The corporation you invest your money with doesn’t mostly utilize your savings in one category or in one unit, which guarantees asset diversification.

Cons

1- Sensitivity to Economic Declines

Whenever the economy in Dubai gets idle or leans downward, the equity REITs are impacted negatively. It’s a con you can face with direct real estate investment, as well.

2- High Tax Applied

Remember the dividends? From the state’s perspective, it’s ordinary income that is taxed as part of your personal income tax rate. While resident investors might enjoy favorable tax treatment or exemptions, foreign investors are subjected to withholding tax unless mitigated by a tax treaty with the country they come from.

3- Lack of Investor Control

In contrast to direct property purchase, you don’t have full control over what the corporation purchases, sells, or offers to rent. Yes, you’re a stakeholder, but not a decision maker.

Examples of Prominent Equity REITs

1- Emirates REIT

They’re Sharia-compliant real estate investment trusts. According to the Emirates REIT first half report of 2025, the net asset value increased by 57%, compared to the same period a year earlier.

2- ENBD REIT

Another Sharia-compliant real estate investment trusts. The diversity of ENBD REIT’s portfolio achieved a net asset value of a 20.3% increase Y-o-Y, based on ENBD REIT released report in 2025.

3- Dubai Residential REIT (DUBAIRESI)

Sharia-compliant real estate investment trusts that focus on residential leasing in Dubai. Based on DUBAIRESI 2025 first half report, the net profit increased by +10% compared to the first half of 2025.  And the gross asset value reached 23 billion UAE Dirham, achieving more than 7% increase.

4- Al Mal Capital REIT

Dubai Investments holds a 70.18% stake in Al Mal Capital PSC. The gross asset value (GAV) increased by 7% since December 2024. Note that the 7% return is a target net return, not a guarantee.

2- Real Estate Crowdfunding in Dubai

Instead of not knowing which properties in specific the corporations, in case of REITs, invest in, online real estate crowdfunding platforms let you choose and distribute investments yourself. Crowdfunding is a way to gather funds in one pool from different investors to back new off-plan developments or purchase a stake in already built properties.

Pros

1- Low Capital Requirements

Digital fractional ownership is an opportunity to own real estate properties through investing less capital.

2- Transparency

The online crowdfunding platforms provide you with all the data you need to know about the unit. The comprehensive information helps you make a confident decision.

3- Passive Income

When you buy shares in a ready apartment, you’ll enjoy a part of the rental income the unit generates without carrying the burden of property management.

Cons

1- Limited Liquidity and Exit Options

Most crowdfunding opportunities have some obstacles with liquidity obstacles, in contrast with REITs, which are more flexible. Online crowdfunding platforms drive you to lock the investment amount for periods that might extend between two and five years or even more. 

2- Limited Control

Compared to REITs, you have more control over funds as you choose the property you want to invest in. Still, you don’t manage the unit, can’t determine the rent value, or the tenant’s qualifications. The platform performs any action related to the unit on behalf of the stakeholders.

3- Platform & Management Fees

Your profit starts decreasing before you even notice. The reason for this profit leakage is the fees deducted by the platform for unit management and offering crowdfunding services.

Most Popular Online Real Estate Crowdfunding Platforms in Dubai

1- PRYPCO Blocks

A real estate crowdfunding online platform that enables you to perform fractional ownership of Dubai’s top rental properties.

• → Platform Entry Fee: 1% of the property’s funding target.
• → Least Amount to Invest: AED 2,000

 

2- SmartCrowd

With a 17% average annualized return achieved, SmartCrowd is considered one of the top performing crowdfunding platforms in the UAE. 

• → Platform Entry Fee: 1.5% of the property’s funding target (There are other additional fees on the platform: 0.5% annual administration fee, and 2.5% exit fee.)
• → Least Amount to Invest: AED 500

 

3- Stake (or GetStake)

Another crowdfunding platform that is popular in the UAE and Saudi Arabia for real estate investment.

• – Platform Acquisition Fee: 1.5% of the property’s funding target + 0.2% initial KYC/AML (0.5% paid yearly for managing your investment)
• – Ongoing Fees: 0.1% annual KYC/AML (from year 2) + property management/service charges.
• – Exit Fees: 2.5% exit fee + 7% performance fee (on profit only).
• – Least Amount to Invest: AED 500

 

3- Real Estate Exchange-Traded Funds (ETFs)

Why invest in a single REIT while you can invest in many? That’s the main idea of ETFs. Thus, you gain a much broader exposure to the real estate market. Still, ETF is another option that enables you to invest in smaller amounts of money.

Pros

1- Diversification

In this case, your investment doesn’t rely on a single REIT, but many. This makes any challenge facing a single REIT won’t affect the rest. The impact is limited due to the ETF’s diversification feature.

2- A Broader Investment Approach

While REITs might be specialized in a certain type of properties; residential, commercial, hospitality, etc, ETFs give a better opportunity for property variety.

3- Higher Stability

If you’re an investor who looks for low-risk investment opportunities, ETFs could be a better choice. For REITs, a single poor management decision might affect the stock price, dropping it sharply, which doesn’t happen in the case of an ETF. 

Cons

1- High Fees

There are ongoing management fees associated with the ETFs, which are called expense ratios. These fees vary between 0.1% and 0.5% annually of the invested amount, reducing your returns in the long run.

2- Tax Applied

Similar to the REITs, the dividends that result from ETFs fall under the income tax. 

3- Lower Returns

The fact sheets of ETFs, compared to REITs, prove that they deliver lower income, despite the portfolio diversification achieved.

Final Thought About Indirect Ways to Invest in Real Estate

After clarifying the most popular indirect ways to invest in real estate that depend on equity, not debt, you can make up your mind and determine the best route that suits you. A higher income might be volatile, while a stable income is relatively low. So, determine your choice and know that indirect investment is just a phase in your journey toward direct real estate investment in Dubai.