Shard is an innovative tech startup revolutionizing real estate market through an innovative co-ownership model. The company aims to redefine real estate investment with well-selected and managed properties, attracting a new circle of global investors.
Istvan Juhász, the Co-Founder and CEO, previously transformed Foodpanda Slovakia into a leading platform and co-founded Case Solvers, achieving notable success. With a background at The Boston Consulting Group and degrees from the University of St. Gallen and Corvinus University, Istvan's expertise in strategy and leadership is well-established. Recognized in Forbes 30 Under 30 in Hungary, he brings innovation and excellence to Shard, making a significant impact on Dubai's investment scene.
In this exclusive interview, he shares insights into Shard's unique model, the opportunities it offers, and his vision for the future of real estate investment in Dubai.
What inspired you to create Shard, and how did your previous experiences at Foodpanda Slovakia and Case Solvers influence your approach to real estate investment?
Whenever I visited Dubai, I noticed the city offered some incredible properties with excellent appreciation potential, prime locations, and all the desired amenities. I started contemplating owning one of these properties, but then it struck me—I only spend a few days here each year, so why would I buy a property outright? This led to the idea of co-ownership. Instead of owning the entire property, why not own a share and still enjoy the full lifestyle? That's the concept we developed with Shard.
My previous experiences significantly influenced this approach, particularly in technology and customer experience. I've always been passionate about tech, and I even know how to code. My work in tech companies has been instrumental in shaping our model. Additionally, my background in food delivery and my previous startup taught me the importance of meeting customer expectations, especially when they are eagerly waiting for something, like food. This focus on customer satisfaction has been paramount in shaping Shard's co-ownership model.
Can you explain the co-ownership model Shard is introducing to Dubai, and how it differs from traditional real estate investment methods? What strategies do you employ to stay ahead of the competition?
Shard is introducing a modern co-ownership model to Dubai, revolutionizing the way people invest in real estate. Co-ownership allows multiple investors to share ownership of a property, specifically dividing it among eight co-owners. Each person owns one-eighth of the property and, in return, can use it for one-eighth of the year, which amounts to 44 days. These 44 days can be spent personally in the property or rented out, providing flexibility and maximizing the property's potential use.
This model differs from traditional real estate investments where individuals must buy entire properties outright, often requiring substantial capital. By contrast, Shard’s co-ownership model lowers the entry barrier, making premium real estate more accessible.
To stay ahead of the competition, we focus on carefully curating and managing top-tier properties, ensuring they meet high standards and offer exceptional value. This approach, combined with our commitment to seamless, hassle-free management and excellent customer service, sets Shard apart in the competitive real estate market.
Why do you believe Dubai is an ideal market for Shard's co-ownership model, and what unique opportunities does the city offer for investors? What are the key benefits for investors who choose the co-ownership model through Shard, and how does it ensure a hassle-free management experience?
Dubai is an ideal market for Shard's co-ownership model for several compelling reasons. Firstly, the lower entry cost is a significant advantage. With investments starting at AED 200,000, individuals can access premium real estate in Dubai, which would have been impossible with traditional full ownership at this price point.
Dubai's real estate market is experiencing remarkable growth, with premium properties appreciating by 17% last year, a figure unmatched by any other global city. Additionally, rental yields in Dubai are around 5% net, making it a highly attractive investment opportunity.
Shard's co-ownership model also eliminates many of the burdens typically associated with property ownership. We handle the selection and management of top-tier properties, ensuring they meet the highest standards. Our focus is on the top 1% of properties in prime locations such as Downtown, Creek, and Marina, chosen for their appreciation potential, rental yield, and popularity with tourists.
We offer a truly hassle-free experience. Investors don't need to worry about administrative tasks, taxes, or insurance. Our app allows users to book their days at the property effortlessly, and we manage everything, including amenities. Whether you need a stocked fridge, a driver, or a nanny, you can arrange it all through our app, ensuring a seamless and luxurious experience.
In summary, Dubai offers unique opportunities for real estate investment due to its booming market, high rental yields, and strategic location. Shard's co-ownership model maximizes these opportunities while providing a low-cost, hassle-free investment solution that caters to the needs of modern investors.
How does Shard select and manage its curated properties, and what criteria are used to ensure they meet your standards?
To offer the most exceptional properties, Shard partners with leading real estate agencies in Dubai, including Hospi, Better Homes, and Engel & Völkers. Our selection process involves a thorough evaluation based on a comprehensive set of criteria.
Firstly, we analyze the hard data, such as property appreciation and rental yield potential. These financial metrics are crucial in ensuring the investment's profitability and attractiveness.
However, we also pay close attention to the softer factors that enhance the living experience. The property must have top-notch amenities, such as a state-of-the-art gym, a luxurious pool, and other high-quality facilities. We also assess the general condition of the property, ensuring it meets our stringent standards. If any fit-outs are needed, we handle those to bring the property up to the highest possible standards.
Additionally, we look for unique and special features that set a property apart. For instance, a property with lagoon access in the Creek area offers something rare and valuable. We also consider the surrounding environment, such as the nightlife in downtown or City Walk, which can significantly enhance the property's appeal.
Before listing a property, we conduct one final check to ensure it possesses that extra special element, making it stand out in the market. By focusing on these factors, we ensure that every property we manage offers an exceptional living experience and meets the highest standards of quality and luxury.
How does Shard mitigate the risks associated with real estate investments, particularly in a fluctuating market like Dubai's?
Property prices in Dubai have been on the rise for about three years now, and they have not yet reached previous peak levels, indicating historical room for growth. The market fundamentals are strong, supported by robust foreign direct investment, a growing number of high-net-worth individuals, and government initiatives that ensure economic stability. The real estate sector in Dubai is very stable, making it a clear and safe investment destination.
To mitigate risks, we ensure that when you purchase a Shard, you become the true owner, meaning all costs are aligned with those you would incur if you owned the property outright. We carefully curate our property selection, focusing on premium locations and properties with strong appreciation and rental yield potential. This careful selection, combined with the solid market fundamentals, helps us mitigate the risks associated with real estate investments in Dubai.
What financial metrics and KPIs do you prioritize to measure Shard's success and ensure long-term profitability for your investors?
The two key metrics we prioritize are property appreciation and rental yield. Last year, property appreciation in Dubai for premium properties was 17%. In areas where we list, such as the Creek or Downtown, the appreciation for 2024 has already matched or exceeded this figure, indicating a healthy market with sustained demand.
For rental yield, it is crucial to focus on the most sought-after tourist areas, like Marina or Downtown, and to ensure properties have great views and amenities. High-quality photos showcasing these features significantly boost rental yield. Currently, rental yield in Dubai is around a net 5%, meaning that after all costs, including property management and utilities, investors see about a 5% annual return. Our goal is a net return on investment of 10%, which we find achievable given the current levels of property appreciation.
How does Shard handle scenarios where properties do not generate the anticipated rental yield or appreciate as expected? What safeguards are in place for investors in such cases?
First, we only offer carefully curated properties. We analyze past data with our partners, including actual rental yield data and property appreciation data from the market. This ensures that we select only the top 1% of properties. If the co-owners are not satisfied with the performance, they have the power to vote us out and replace us with another management company. This system ensures that we are continuously motivated to strive for the best performance and serve our owners effectively.
Shard promises a seamless digital experience. Can you elaborate on the technological innovations that Shard employs to enhance the user experience?
Our app offers several features designed to make the co-ownership experience as smooth as possible. You can easily schedule your stays, view financial details to track rental revenue, and even initiate the resale of your Shard if you choose. These innovations ensure that managing your co-ownership is convenient and efficient, all from the palm of your hand.
What systems and processes have you put in place to ensure Shard can scale effectively as demand for co-ownership increases?
Shard is built by an experienced team of entrepreneurs, consultants and real estate experts, and we have the backing of a high-profile board of directors. I bring experience from scaling a startup in AdTech and leading a food delivery company through hyper-growth during COVID-19. Our chief sales officer, with a real estate background, successfully scaled a sales team from 20 to 140 people. This collective expertise equips us with the knowledge and skills needed to effectively scale Shard as demand for co-ownership increases.
Building trust is crucial in real estate. What measures does Shard take to ensure transparency and trust with its clients?
Shard is big on transparency. I think real estate invites some cowboy projects, projects which reduce trust in the segment itself. We set out from the get-go to be very transparent about all our data. That includes pricing. So, we are very fair and square about how much we charge and what the components of those charges are. I think that already differentiates us in the market. We were complimented by multiple of our buyers that they joined Shard because they felt that we are transparent, and they know what they are getting into.
With rents increasing in Dubai, how do you see Shard's model contributing to the broader real estate market and the economy?
One of Dubai's initiatives for 2030 is sustainability, and Shard aligns with this goal by maximizing the utilization of premium properties. Instead of a single family owning and using a property sporadically, Shard's model ensures that each property has eight co-owners. This approach guarantees that the property is occupied and used throughout the year, reducing vacancy rates and promoting more efficient use of real estate resources. By fostering continuous occupancy, Shard supports a more sustainable and vibrant real estate market in Dubai.
What are some of the biggest challenges you’ve faced in launching Shard, and how have you addressed them?
One of the biggest challenges we faced in launching Shard was explaining our co-ownership model. Many people initially confused it with timeshare, so we had to clearly differentiate that our model offers real ownership, not just time-limited use. Once we clarified how our model actually works, some people still found it hard to believe—it seemed too good to be true. To address this skepticism, we provided extensive validation, including licenses and regulatory approvals, to demonstrate the legitimacy of what we are offering. This effort was crucial in ensuring that people understood and trusted our innovative co-ownership concept.
How do you navigate the regulatory landscape in Dubai, and what challenges have you encountered in ensuring compliance with local laws?
Navigating the regulatory landscape in Dubai is quite favorable for co-ownership. The Dubai Land Department allows up to eight non-blood relatives to be on the title deed, which is unique compared to many other countries that require the formation of an LLC or a special company to hold the property. This direct ownership model allows co-owners to be as close to the asset as possible.
To ensure compliance with local laws and regulations, we collaborate with top-tier lawyers and maintain a close working relationship with relevant authorities, such as the Dubai Land Department. This approach ensures that all legal and administrative aspects of co-ownership are handled smoothly, providing our investors with a seamless and secure experience.
What are your plans for Shard's expansion beyond Dubai? Are there other markets you are considering for introducing the co-ownership model? Can you share any upcoming features or services that will further enhance your platform?
Shard is pioneering the co-ownership model in Dubai, with no other co-ownership players currently in the other Emirates or Saudi Arabia.
Therefore, our next expansion markets include Abu Dhabi and Ras Al Khaimah (RAK), where we plan to extend our services this year. While I can't disclose all the details just yet, we are working on exciting new features that will enhance how you can use your 44 days, thanks to partnerships we are developing.
Have you personally invested in properties through Shard? If not, why? If so, can you share your experience?
Yes, absolutely. I firmly believe that the best companies are those where the founders create solutions for their own needs. Personally, I love Dubai Creek—it's the perfect holiday location for me. However, for work, I prefer to be closer to the Marina on the other side of Dubai. Currently, I rent an apartment, but I often daydream about spending time at the Creek.
Paying higher rent just to stay at the Creek felt impractical to me. However, Shard provides the perfect solution. With Shard's co-ownership model, I can enjoy the full lifestyle of owning property at Dubai Creek without the financial burden of full ownership. It allows me to benefit from true ownership and capital appreciation, without feeling like I'm wasting money on rent.
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