Latest news with #KensingtonWaters
The National
8 hours ago
- Business
- The National
How real estate tokenisation aims to make buying property in Dubai affordable
Dubai's second tokenised real estate project sold out in a record-breaking time of less than two minutes, the emirate's Land Department said, illustrating the high demand amid a housing boom. The property is a one-bedroom apartment in Kensington Waters, Mohammed Bin Rashid City, valued at Dh1.5 million ($408,441), offered at a discounted rate compared to its estimated market value of Dh1.8 million, project promoters Prypco said in a statement. It attracted 149 investors. UAE residents holding valid Emirates IDs can pay as little as Dh2,000 for a share of this new property. The scheme is expected to open to international investors in its next phase, the company said. Launched on May 25, it is being implemented by Prypco Mint platform, in collaboration with Dubai's Virtual Assets Regulatory Authority (Vara), the UAE Central Bank and the Dubai Future Foundation (DFF) through the Real Estate Sandbox. The platform's first property, a two-bedroom apartment in Business Bay, attracted 224 investors, with an average input of Dh10,714. Listed at Dh2.4 million, below its Dubai Land Department (DLD) valuation of Dh2.89 million, it was fully funded within one day. The land department has invited those interested to register early and set up their accounts to take advantage of coming offerings before they sell out. Tokenisation caters to a particular segment in the market, featuring people who wanted to join the real estate party but never had the invitation, said Mario Volpi, head of brokerage at Novvi Properties. "It's relatively easy to buy in and buy out. However, there is just one company offering it now. So it's a bit of a closed shop in that respect." What is property tokenisation? At a basic level, tokenisation converts a physical real estate asset into digital shares – known as tokens – recorded on a blockchain. Each token represents fractional ownership in the property, allowing a number of investors to participate at a lower entry point than traditional real estate, said P.P. Varghese, head of professional services at Cushman & Wakefield Core. "In principle, it's an alternative way to structure and record ownership, but the underlying asset remains the same: the property still exists, generates income and requires the same fundamentals to perform over time," he said. "Tokenisation doesn't replace the traditional drivers of value in real estate. Asset quality, location, tenancy, governance and market dynamics continue to be the factors that ultimately determine an asset's performance. The technology may change how ownership is accessed and traded, but it doesn't change what makes a property successful." How to invest under this model? Currently in Dubai, investors are being encouraged to contact the DLD to express interest in available projects, said Matthew Green, head of research - Mena at CBRE. "However, over time, we would expect the market to open up further, with different avenues to acquire these assets to emerge, likely through a combination of official government channels and also directly through other market participants, including developers, funds and other registered entities." Risks and returns In terms of returns, tokenised real estate mirrors traditional property investment: rental yields, capital appreciation and long-term market growth. Where tokenisation introduces additional variables is in liquidity, pricing transparency, regulatory oversight and platform stability – all of which remain relatively early stage in most global markets, including Dubai, Cushman & Wakefield Core said. "We advise investors to approach tokenisation with the same discipline they would apply to any other real estate investment," Mr Varghese said. "The structure may allow fractional access, but the underlying asset still requires thorough due diligence." CBRE's Mr Green highlighted how the tokenised asset is open to fluctuations in the supply and demand of property, and related pricing. Outside of that, the risks are related to technology, the systems and platforms that house and trade these assets, he added. Advantages and disadvantages Tokenisation ultimately helps to expand a market by diversifying the investor pool, creating liquidity, removing barriers to entry (time, location, investment size, etc) and facilitating an easier and quicker method to participate in the market, Mr Green said. From a developer or owner perspective, it also creates another potential avenue for divestment, offering a tangible alternative for project fund-raising, while at the same time also attracting an entirely new source of investors to enter the market, he added. However, Mr Varghese said the disadvantages are equally important to acknowledge. The regulatory frameworks are still developing, platforms vary in quality and oversight, and in many cases, secondary trading markets remain thin. "Transaction costs can also become disproportionately high, particularly at the smaller investment sizes that tokenisation often targets. When you factor in platform fees, blockchain gas fees, legal expenses and regulatory compliance costs, the total cost of entry can easily exceed what investors might pay in a conventional real estate transaction," he warned. "For very small ticket sizes - say, investments of $100 - these fixed costs can quickly erode returns. Even dividend payouts can be costly to process at scale, depending on the platform architecture." There are also valuation challenges specific to tokenised assets, Mr Varghese said. "While fractional ownership creates access, it can reduce liquidity compared to traditional whole-asset ownership, which may lead investors to apply discounts when pricing tokens. Conversely, at times of heightened retail interest, tokens may trade at premiums that don't fully reflect underlying asset fundamentals. That can create disconnects between actual property performance and token pricing," he explained. Value of tokenised real estate market The land department projects Dubai's real estate tokenisation market to reach Dh60 billion by 2033, representing 7 per cent of the emirate's total property transactions. "Dubai has many of the ingredients in place to explore tokenisation at scale: an openness to financial innovation, strong regulatory bodies, and significant cross-border capital flows," Mr Varghese said. "The market is watching the evolution of tokenisation carefully, and we expect to see early activity particularly in smaller-scale residential and niche assets. It's likely that tokenisation will find its place in the market over time, but for now, it's more complementary than entirely disruptive."
Arabian Business
a day ago
- Business
- Arabian Business
Dubai tokenised real estate project sold out in less than 2 minutes on PRYPCO Mint platform
The Dubai Land Department (DLD) revealed that the second tokenised property on the PRYPCO Mint platform sold out in one minute and 58 seconds — setting a new record for digital property investment in the emirate. The project attracted 149 investors from 35 different nationalities, underlining Dubai's growing appeal as a global hub for accessible, technology-driven real estate opportunities. Demand for the offering has surged so dramatically that the waiting list surpassed 10,700 potential investors. Dubai tokenised real estate project sold out in less than 2 minutes The platform is part of Dubai Land Department's official Property Tokenisation Initiative, designed to democratise property investment by allowing fractional ownership of real estate assets. Through PRYPCO Mint, investors can purchase shares in ready properties quickly and securely, using an entirely digital process that lowers traditional barriers to entry. Partial ownership is available from just AED2,000 ($545). The sold-out listing featured a one-bedroom apartment in the prestigious Kensington Waters, located in Mohammed Bin Rashid City. Valued at AED1.875m ($510,500), the apartment was offered at a discounted rate of AED1.5m ($408,000), providing investors immediate equity and value.
Arabian Business
2 days ago
- Business
- Arabian Business
Dubai real estate: PRYPCO Mint launches second tokenised property with investment from just $545
Dubai real est a te investors can buy a share of a AED1.875m ($510,500) home for just AED2,000 ($545) with tokenised property set to hit market this week. platform PRYPCO Mint has unveiled its second tokenised property offering, marking another significant step in the evolution of fractional property ownership in the UAE. Following the success of its inaugural tokenised listing, which was fully funded in less than 24 hours, PRYPCO Mint's new property listing goes live on June 11, further solidifying Dubai's role as a global leader in real estate innovation. Democratising Dubai real estate ownership The latest listing features a one-bedroom apartment in the prestigious Kensington Waters, located in Mohammed Bin Rashid City. Valued at AED1.875m ($510,500), the apartment is offered at a discounted rate of AED1.5m ($408,000), providing investors immediate equity and value. Fractional ownership begins at just AED2,000 ($545), allowing a new generation of investors to enter the premium real estate market through affordable, blockchain-backed investment options. Amira Sajwani, Founder and CEO of PRYPCO, said: 'The incredible response to our first tokenised property proved that investors are ready for a smarter, more accessible way to invest in real estate. 'With our second property, we're continuing to break down traditional barriers and offer high-quality opportunities to a broader, more diverse audience. At PRYPCO, our mission is to democratise property ownership, and this is just the beginning.' This launch follows the success of PRYPCO Mint's first-ever tokenised real estate transaction, which was executed in May 2025. The platform's debut property, a two-bedroom apartment in Business Bay, attracted 224 investors from over 40 nationalities, with an average investment of AED10,714 ($2,920). The listing, priced at AED2.4m ($653,500)—below its Dubai Land Department (DLD) valuation of AED2.89m ($787,000) —was fully funded in under 24 hours, demonstrating strong demand for transparent, technology-driven, and value-oriented real estate products. Regulatory milestone for blockchain-powered real estate A key milestone in the project's development was the issuance of Property Token Ownership Certificates by the Dubai Land Department (DLD) to the first group of investors. This certificate formally acknowledges blockchain-based property ownership, aligning the tokenisation of real estate with Dubai's robust legal and regulatory framework. This move is part of the broader Real Estate Tokenisation project, launched in collaboration with the Dubai Land Department and the Virtual Assets Regulatory Authority (VARA), aiming to institutionalise the emerging asset class within the UAE. The project is built on a secure and scalable blockchain infrastructure powered by Ctrl Alt, which issues ownership tokens via the XRP Ledger. Zand Bank, the platform's official banking partner, ensures financial integration, guaranteeing a seamless investment experience. Targeting tech-savvy investors and millennials PRYPCO Mint is designed to appeal to tech-savvy investors, millennials, and first-time buyers looking for flexible, liquid investment opportunities in the real estate sector. The platform's mobile-first experience reimagines property ownership by transforming what has traditionally been a slow, capital-heavy process into a streamlined, inclusive investment option. Currently available to UAE residents holding valid Emirates IDs, PRYPCO Mint plans to expand its reach to international investors in the next phase, further enhancing Dubai's reputation as a global hub for real estate innovation. The project aims to revolutionise how property is bought and sold, offering a more accessible, digital-first approach to investing in the UAE's dynamic real estate market.
