You don’t need me to tell you that investments are a great way to grow your wealth. Provided you have sufficient capital to spare, developing a diversified and robust portfolio is likely to net you higher returns than your average savings account. Naturally, there is an element of risk involved – the value of any asset can go down as well as up. However, there are myriad ways to achieve a level of exposure that you feel comfortable with, and certain asset classes boast greater stability than others.

As Founder and CEO of PRYPCO, Co-founder of Amali Properties and Managing Director – Sales and Development at DAMAC Properties, I appreciate I am biased. Nevertheless, for me, real estate is by far the best sector in which to invest your hard-earned money. Not only is it the largest asset class globally, but it also offers a range of segment-specific benefits. Savvy property investments can help you earn passive rental income while building your long-term wealth through capital appreciation. What’s more, real estate values and rental yields have typically risen in parallel with the cost of living, meaning such assets tend to act as an inflation hedge.

As with any asset class, real estate also has its drawbacks, chief among which is cost. Traditionally, the amount of capital required to purchase a property has represented a significant barrier to entry, but leading proptech brands like PRYPCO are working to democratise the world of real estate through fractional ownership.

So, what is this investment model and why does it matter?

Fractional investment 101

Fractional investment, also known as fractional ownership or ‘micro-investing’, allows people to acquire a percentage of an asset. This means that rather than having to purchase real estate wholly, it is possible to buy a fraction alongside other investors who own shares in the same property or development.

The fractional model is helping to make property investment accessible to a greater number of people while enabling them to minimise their exposure to risk, so it’s no surprise that it has gained such significant traction in recent years. This trend has been further accelerated by the rise of fintech platforms and mobile investing apps that enable users to acquire percentages of a wide array of assets, including but not limited to real estate.

I firmly believe that the fractional model has the power to democratise real estate investment, which is why my colleagues and I have worked tirelessly to establish PRYPCO as a market leader in this space. We have done this through PRYPCO Blocks.

Financial building blocks

PRYPCO Blocks allows investors to acquire individual ‘blocks’ of UAE properties from just AED 500. Specifically designed to streamline the real estate buying and selling process while drastically lowering the financial barrier to entry, this platform is enabling customers to grow their wealth at a level and pace that suits them.

Users begin their PRYPCO Blocks investment journeys by browsing our curated list of properties, all of which have been handpicked by leading industry experts. Our platform provides access to a wealth of relevant information, including projected rental returns, investment tenures, current market prices and more. It is also possible to add, hold or withdraw investments after the staking period. Once a transaction is complete, users will start to earn monthly income from their ‘block’ and are likely to see their investments grow over the longer term due to capital appreciation.

As users build their portfolios, they can track the performance of their ‘blocks’ and explore new recommendations using our Investment Dashboard. They can also manage their funds, including rental incomes and other proceeds, via their secure PRYPCO Wallet. All investments that take place on our platform are regulated by the Dubai Financial Services Authority (DFSA), offering peace of mind to everyone involved.

Levelling the playing field

With PRYPCO Blocks, my colleagues and I are bringing real estate investment opportunities to a mass audience. During the course of an investment term for a typical property, we expect users to see annual returns of approximately 8% and, in some cases, up to 12%. While these returns are not uncommon in the UAE’s real estate sector, investors would previously have required far greater levels of capital to get a foot on the property ladder.

Ultimately, we believe that everyone should have an opportunity to build their wealth through property investments. By leveraging fractional ownership, PRYPCO is not only making it possible for larger numbers of people to capitalise on the UAE’s thriving real estate market, but we are also helping to simplify and streamline the investment process.

PRYPCO is committed to revolutionising the field of real estate investment by delivering unparalleled accessibility, affordability and flexibility to our users. Put simply, we are levelling the playing field.

And this, in essence, is why fractional investment matters.