Developers offer part ownership as distressed property sales rise in UAE

A failed property auction this week in Dubai shows that the market is not yet on red alert, although developers are keen to look at new ways of improving their cash flow.

The funding shortfall in the market may require an increasing number of private and single-tower developers to offer part ownership options to investors in their projects, according to some experts.

A few developers in Dubai such as Cirrus Developments are offering unit purchasers the option of becoming a shareholder in the project. In March, Cirrus presented a restructuring proposal to the purchasers of Aquarius Gate project, which will convert their status from "unit purchasers" to "shareholders" in new project company.