Opening Doors to Global Investors with Fractional Ownership in a Booming Market
Pavitra Shetty
Published on December 6, 2024, 16:12:30
Dubai-based digital platform Stake is revolutionizing access to Saudi Arabia's real estate market, offering investments starting as low as $134. Backed by prominent investors like Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. and Saudi Aramco’s venture capital arm, Stake is pursuing property deals worth SAR 1 billion ($266 million) over the next six months.
The firm is currently finalizing the acquisition of a fully rented mall in Riyadh valued at SAR 187 million, alongside plans to purchase a residential tower with over 140 apartments for SAR 200 million. This move comes as Saudi Arabia gradually opens its property sector to foreign investors, traditionally restricted to locals.
Stake’s soft launch in Saudi Arabia has already seen significant demand, with investors drawn by strong capital appreciation and rental yields of 7–8%, according to co-founder and co-CEO Rami Tabbara. Official operations in the kingdom are set to begin on December 9.
The Gulf’s largest economy is undergoing a transformation, with increasing opportunities for foreign ownership. While foreigners can obtain long-term residency by purchasing property worth 4 million riyals, broader access to the market is still evolving.
For investors, Saudi Arabia’s real estate market presents an appealing opportunity. Apartment prices in Riyadh have surged 62% in the last three years, and villa prices have climbed 37%, according to Knight Frank LLP. The kingdom needs to build 115,000 homes annually for the next six years to meet demand from its youthful population, as part of the Vision 2030 agenda aimed at diversifying the economy beyond oil.
Founded in 2021, Stake has raised $28 million and acquired over 330 properties in Dubai, worth around $150 million. With 832,000 users from over 200 nationalities, the platform pays investors rental income and allows flexibility in holding periods.
Investors are encouraged to hold properties for five years to maximize real estate appreciation, but those seeking early exits can sell their stakes on the platform after a one-year lock-in period.
Building on its success in Dubai, Stake plans to expand to Abu Dhabi early next year, further cementing its position as a leading platform for fractional real estate ownership.
As Saudi Arabia implements significant investment initiatives under Crown Prince Mohammed bin Salman’s Vision 2030, Stake’s entry into the kingdom offers a unique gateway for global investors. With its user-friendly platform and growing portfolio, the company is positioned to capitalize on the rising demand for real estate in one of the fastest-growing markets in the region.
For more updates, visit Stake’s website or follow their official launch on December 9.
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