The new initiative, recently announced by the Registration and Services Department of the Dubai Land Department, aims to attract investment in hotel or serviced flat projects in Dubai, one of the best cities for tourism and lifestyle.

A partial title deed is a splitting of the same unit into two or four parts, each with its own title deed, which can be sold, mortgaged or transferred just like any other property.

"The initiative is currently in the pilot phase of a project and we look forward to more projects like it when it is fully implemented," said a DLD spokesperson.

"Keeping up with the growing number of investors in Dubai, especially small investors, partial covenants offer them the opportunity to become co-owners of a property by investing only a portion of its value. This reduces the financial cost of entry into the property market for investors, giving them the flexibility to invest within their budget," the spokesperson added.

"An investment of this ticket size will be affordable for all types of investors. Under the DLD's legal and property registration guidelines, a partial title deed can be registered in anyone's name."

Dubai's hospitality sector is one of its main revenue drivers, as tourism attracts huge business to the country. The hospitality industry, which also includes leading players such as Emaar, Damac and Nakheel, is currently adapting various strategies to remain competitive.

Industry stakeholders said the UAE has implemented a strong strategy to manage the epidemic, with the key priority being to safeguard the health and well-being of citizens, residents and visitors, who have been arriving since July 7, a development that will boost the road to recovery for tourism and increase occupancy rates in hotel flats.

"The co-ownership of hotel flats is an amazing concept for Dubai as it is one of the most visited cities in the world and that is why it is working so well here.

The concept is becoming a trend as we have seen some of the big developers in Dubai offering co-ownership in their hotel flats," Babar Ali, chief executive of Home Smith Real Estate Brokers, told Khaleej Times.

"It is mainly local and international investors who always seize these opportunities as the concept offers amazing benefits, which include high quality finishes, high rental returns on investment, expected capital appreciation and hassle-free property management from the developer."

Springfield Real Estate CEO Farouk Said said such bold moves would reinvigorate the market and help it overcome the effects of the coronavirus outbreak.

"I believe joint ownership will give a much-needed boost to demand in the hospitality sector. We need innovative initiatives like this to reinvigorate the market, especially in the wake of the Coronavirus outbreak," Said said.

He said co-ownership in the hospitality sector would also allow investors with smaller budgets to reap high returns, while brokers would be able to market high-end venues to a wider audience.

"Dubai has been at the forefront of innovation due to the city's leadership and I believe we will be one of the first cities to bounce back after Covid," he added.

Meanwhile, the Dubai Tourism Authority said hoteliers are being forced to quickly rethink their business models to maintain their position in this fast-changing tourism environment.

Demand for global flights has continued to grow since the beginning of June, leading to an increase in seat capacity.

According to OAG Aviation Global, airlines worldwide have added 8.2 million seats, the largest increase in seat capacity since the outbreak.

Echoing the upward trend in global seat numbers is a markedly positive demand for visits to Dubai over the next three months. Hotel Apartments is offering promotions to residents to boost business.

Tanuj Shori, CEO of Square Yards, said." The potential benefits of property segmentation are huge. It could pave the way for the creation of a massive, liquid and highly transactional real estate equity market, fundamentally changing the way we view the sector. Huge value can be unlocked by creating a public real estate exchange where small retail investors can participate, enabling ownership transfers to be made at the click of a button, with settlement taking place in the background and at a very small cost per transaction."