Arabnet Arabnet

Smart Crowd, a regulated real estate crowdfunding platform, announced that they closed their first transaction with a select group of investors on June 21. This marks a milestone for Smart Crowd while making history in conducting the first regulated crowdfunded real estate transaction in the region.

Smart Crowd simplifies the way individuals buy and sell in real estate by reducing the barriers for low to middle income individuals. Such individuals can start building their real estate portfolio with as little as 5,000 AED.

The transaction was a private sale of a small studio in Remraam community developed by Dubai Properties. Smart Crowd crowdfunded it with three investors, and were able to negotiate a price below market value with rental income above market value providing downside protection to the investors. The transaction value was at 365,000 AED.

The investors in this property will realize a gross yield of 10.8% and a net yield of 8.68%, based on the current lease agreement.

Assuming a capital appreciation of 3% per annum over the next 5 years, the total expected ROI is approximately 54.69% translating into an annualized return of approximately 9.74%.

Learn more about Smart Crowd by visiting their website.