Dubai's first tokenised real estate project signals ‘major transformation' for property sector
Last week it was reported that Prypco Mint - the MENA's first tokenised real estate investment platform backed by the Dubai Land Department (DLD) - saw its first property listing fully funded in one day, 'setting a regional benchmark for speed, demand, and investor confidence.'
The property attracted 224 investors from over 40 nationalities - 70% of whom entered Dubai's real estate market for the first time - with an average investment amount of AED 10,714. Prypco said this highlighted 'the platform's wide appeal and the growing appetite for accessible, tech-enabled real estate opportunities in the region.'
'To see our first property fully funded in just a day reflects not only the strength of the concept but also a clear market demand for smarter, more accessible investment solutions,' said Prypco's CEO Amira Sajwani.
Dubai's residential property prices expected to fall by 15%: Fitch Ratings
The initiative continues to draw significant interest, with a waitlist that has over 6,000 requests. 'This surge in demand reflects Dubai's growing appeal to new segments of global investors seeking innovative and accessible property ownership models,' DLD said.
So what exactly is a tokenised real estate project?
Essentially, it allows users to own a share in a prime real estate project in Dubai properties through blockchain-based tokens, starting from AED 2,000.
Joseph Dahrieh, Managing Principal at forex broker Tickmill, broke it down: 'A tokenized real estate project involves converting ownership rights or the economic value of a physical property into digital tokens that are recorded and traded on a blockchain platform.' Speaking to Business Recorder, he said 'this process enables fractional ownership, meaning a property can be divided into many smaller, more affordable shares represented by these tokens.' This approach aims to increase liquidity by making it easier to buy and sell these shares, lower barriers to entry for investors by reducing the minimum investment needed, and enhance transparency and security through the immutable nature of blockchain records, he explained.
According to Prypco's statement, the platform converts tangible real estate assets into secure, digital tokens, each linked to a legally recognised Property Token Ownership Certificate issued by the DLD. 'This grants investors the same rights as traditional property ownership with none of the associated administrative burden, while enjoying benefits such as rental income, capital appreciation, and liquidity,' it said.
Meanwhile DLD has said the certificate it issues will ensure 'a transparent and secure investment experience without the complexities of traditional property management', adding that investors will benefit from both rental income and capital appreciation resulting from the property's appreciation. Currently available exclusively to UAE ID holders, the platform is expected to expand globally in the near future.
The project is jointly managed by DLD, as the regulator of physical real estate assets, and the Virtual Assets Regulatory Authority, as the regulatory body for digital assets.
'The collaboration ensures an integrated and transparent regulatory framework for this new and innovative model of property investment,' according to DLD.
All transactions are carried out exclusively in UAE Dirhams, with no use of crypto currencies during the pilot phase. Through the platform, investors can access property details, ranging from pricing, risk factors, and technical specifications to the minimum investment required.
In the current phase, the Central Bank of the United Arab Emirates will oversee the opening of corporate accounts linked to real estate tokenization through the Client Money Account system. This banking structure is designed to safeguard investor funds.
What does this mean for Dubai's property sector?
Dahrieh said 'tokenization signifies a major transformation aimed at democratizing investment and enhancing market dynamics.' He said 'it lowers investment barriers, attracting new retail and global investors.' 'This initiative is expected to boost market liquidity, transparency, and transaction efficiency. It also offers developers new funding avenues. Strategically, this aligns with the Dubai Economic Agenda D33 and Real Estate Strategy 2033, aiming to solidify Dubai as an innovative global hub,' he said.
'The DLD projects that tokenized assets could reach AED 60 billion, or 7% of the market, by 2033,' he added.
The project is part of the Real Estate Evolution Space Initiative previously launched by DLD, which aims to 'position Dubai on the global map for PropTech and artificial intelligence.' DLD said the initiative fosters a flexible legislative environment and encourages the attraction of talent and start ups in the real estate sector, further enhancing Dubai's global competitiveness.
Copyright Business Recorder, 2025
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