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Smart Crowd, the company that prides itself as a leading regulated real estate crowdfunding platform in the Middle East, had its first breakthrough last month. The company announced that on June 21, it completed its first transaction with a select group of investors.

This is indeed a huge milestone not just for Smart Crowd, but also for the region’s real estate industry as a whole because this was the first time a regulated crowdfunded real estate transaction has taken place in the region.

Smart Crowd claims to be a stand-alone platform specializing in reducing the hassles of real estate transactions — especially for low to middle-income individuals. It does so by lowering the entry-barrier for people to buy or sell properties. In fact, the flagship scheme currently being operated by the company enables people to build a real estate portfolio for as low as 5,000 AED.

According to a statement by the company, the first transaction it wrapped up was the private sale of a studio in Remraam community. The purchase of the studio, developed by Dubai Properties, was crowdfunded with three investors and per reports, Smart Crowd managed to negotiate a price under the current market value.

Bought at 365,000 AED, the investment on the said property will ensure a gross yield of 10.8 percent and net yield of nearly 8.7 percent for all stakeholders. The expected annual return on investment is expected to be just under 10 percent.

Jenan Al-Mukharriq

Jenan Al-Mukharriq

A highly driven organizing member of the StartUp Bahrain ecosystem. And a Project Manager at Matter In Hand with a passion for content creation and empowering communities.