Latest news with #Prypco
The National
20 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."
Khaleej Times
2 days ago
- Business
- Khaleej Times
Dubai: Second tokenised property sold in record time of under 2 minutes
The second tokenised property was fully funded in a record-breaking one minute and 58 seconds, attracting 149 investors from 35 nationalities, the Dubai Land Department said on Wednesday. This strong demand pushed the waiting list to over 10,700 investors, reflecting rising confidence and strong interest in digital real estate ownership solutions across the emirate, it said. 'The demand blew us away. Tokens were snapped up faster than anyone expected, and your belief and swift action made this possible. Don't worry, our next property drop is coming soon,' Prypco said after the property was sold in a record time. The first tokenised project was fully funded within a day. The property attracted 224 investors from over 40 nationalities, with an average investment amount of Dh10,714. In May, the Dubai Land Department (DLD) launched the region's first tokenised real estate investment project through the 'Prypco Mint' platform in collaboration with the Virtual Assets Regulatory Authority (Vara), the Central Bank of the UAE, the Dubai Future Foundation (DFF) through the Real Estate Sandbox. The platform allows fractional investment in premium Dubai properties through blockchain-based tokens starting from just Dh2,000. The first tokenized unit was based in one of Damac Properties projects in Business Bay while the second listing featured a one-bedroom apartment at Kensington Waters in Mohammed Bin Rashid City, developed by Ellington. Both the properties were priced below market to attract more investors. 'As the platform expands its projects and partnerships, it is helping to shape a future where tokenized assets are expected to become a central part of Dubai's property market by 2033. Amid this momentum, Dubai Land Department invites interested individuals to register early and set up their accounts to take advantage of upcoming offerings before they sell out, unlocking investment opportunities in one of the world's most dynamic and innovative real estate destinations,' the Dubai Land Department said on Wednesday.
Khaleej Times
4 days ago
- Business
- Khaleej Times
Dubai: Second tokenised property to be offered at discounted rate this week
The second tokenised property will be launched in Dubai this week, allowing residents to invest in the red-hot real estate market from as low as Dh2,000. Launched at Prypco Mint, the first tokenised unit from Damac Properties was fully funded in just one day last month, setting a regional benchmark for speed, demand, and investor confidence. The property attracted 224 investors from over 40 nationalities, with an average investment amount of Dh10,714. The second tokenised property will go live on Wednesday, June 11, at 11 am on the Prypco Mint. 'Following the remarkable success of the debut property, which was fully funded within 24 hours, we're excited to launch our second tokenised property on June 11, 2025. This listing features a one-bedroom apartment at Kensington Waters in Mohammed Bin Rashid City, developed by Ellington,' said Amira Sajwani, founder and CEO of Prypco. As an open, industry-first platform, she said Prypco Mint works with leading developers across the market to give investors access to the best opportunities in real estate, beyond any single developer affiliation. The new property is priced at Dh1.5 million, below its independently assessed market value of Dh1.9 million. 'We're focused on finding great deals and high-quality properties for our community, and this is another example of us delivering strong value for our investors,' she added. With a market value of Dh3 million, the first property was offered at a discount rate of Dh2.4 million. The Dubai Land Department said the waitlist exceeded 6,000 requests after the launch of the first tokenised property. 'It's clear there's a strong and growing demand for this new model of real estate investment. We're confident the second tokenised property will see an equally positive response. It's exciting to see investors embrace the benefits of liquidity, transparency, and accessibility, qualities that are transforming real estate from a traditionally static asset class into something far more dynamic and inclusive,' said Amira Sajwani. As awareness around tokenised property continues to grow, Prypco's founder said the biggest beneficiaries will be everyday residents who have traditionally been priced out of real estate investment. 'It's about financial inclusion, flexibility, and control. Residents can now start building their property portfolio in a smarter, more accessible way, whether they're investing for the first time or looking to diversify their assets,' she added.
Khaleej Times
7 days ago
- Business
- Khaleej Times
UAE: How to own a stake in property for as little as Dh500
Buying property in some parts of the UAE has become out of reach for many people, but there are solutions. One option is to buy a portion of the space instead of the whole thing. This is known as fractional ownership and thanks to technology, it has become cheaper and more transparent. Companies like Stake and SmartCrowd offer investors the chance to buy small stakes in properties from around Dh500. For example, Stake currently has six properties available to invest in, including a one-bedroom apartment in Downtown Dubai, with a projected net yield/income of 5.1 per cent. Recently, we saw the launch of a new type of fractional property ownership called real estate tokenisation. When you buy a portion of a property, it's recorded on the blockchain, and you get a digital token to prove ownership. The platform is called Prypco Mint and it's a collaboration between property company Prypco and the Dubai Land Department (DLD). Matt Blom, co-founder at Tokinvest, said: 'Fractional ownership opens the doors of real estate investing to a broader, more diverse pool of investors. Traditionally, property investment required significant capital and often came with geographic or legal barriers. But with fractional models, especially those powered by blockchain and tokenisation, investors can access high-quality, income-generating assets at a fraction of the cost.' Prypco Mint's first listed property — a two-bedroom apartment in Damac Prive Tower in Dubai's Business Bay — was fully funded within a day. It attracted more than 200 investors from over 40 nationalities, with an average investment of Dh10,714. Following the platform's strong debut, multiple developers have shown interest in listing their properties. The platform currently has a waiting list of more than 6,000. How it works Through the Prypco Mint platform, investors can buy small shares, or fractions, of premium Dubai properties, with a minimum investment of Dh2,000. These shares, which are in the form of digital tokens, can earn returns through both rental income and rising property values. At the moment, the scheme is only open to UAE residents with an Emirates ID, but there are plans to open it up to international investors in the future. All transactions are done in UAE dirhams and no cryptocurrency is involved during this trial phase. Investors will get full access to detailed information about the properties, including pricing, risks, and minimum investment amounts. Toby Young, a Dubai-based digital assets strategist, said: 'The scheme is aimed at anyone and everyone assuming they meet the minimum investment criteria. The idea behind fractionalising real estate is to democratise ownership and make assets available to everyone, not just the select few.' Raising the Stakes The DLD/Prypco pilot scheme is along the same lines as that of Stake, a private company that was set up in 2021 and which has been at the forefront of fractional property ownership. It allows people to invest as little as Dh500 to own a fraction of a property. It has already funded more than 400 properties worth more than Dh1 billion in transactions. Rami Tabbara, co-founder and co-CEO at Stake, said that fractional ownership can often be a difficult concept to explain to people. 'It's a new concept for many. People naturally associate real estate with full ownership, large sums of money, and mountains of paperwork. But when we explain it as buying shares in a property, just like you'd buy shares in a company, it starts to make sense.' On Stake's app, there are only six properties currently available to invest in. Why such a low number? 'We prioritise quality over quantity. Every property goes through a strict underwriting process, and only the best listings and the best yielding opportunities make it to Stake,' Tabbara explained. Returns Stake's yearly investment returns average around 10 per cent, but this drops to a projected net yield (after costs have been taken into account) of around 5 per cent a year. Stake said it has been in active discussions with both the DLD and Dubai's digital assets regulator VARA to align its platform with the new regulatory framework around tokenised real estate. Tabbara expects his company to participate in the second phase of the pilot programme, which is scheduled to go live in the second half of this year. DLD said $16 billion (Dh58.7 billion) worth of real estate could be digitised by 2033. What about the DLD/Prypco pilot project's returns? The first property offered was sold at a discount to attract buyers, which equates to a higher yield. Returns on future properties will depend on the selling price, usage of the property, and whether it is a short- or long-term rental. 'That said, typical net yields are between 6-8 per cent after the aforementioned has been taken into account. I would expect similar new returns, with a few outliers above and below that range,' Young added. Investors also need to bear in mind that there may be a lock-up period for their investment. Innovation Dubai is making a name for itself as a leading crypto and blockchain hub, along with being a pioneer of real-world asset (RWA) tokenisation of property. The Prypco and DLD property platform means that a young professional in Dubai can invest in a prime villa or luxury apartment without the complexity or cost of full ownership. 'This isn't just innovation for innovation's sake. It's a structural shift in how wealth can be built and shared,' added Tokinvest's Blom. 'Fractional investment creates liquidity, flexibility, and access, which have been barriers in traditional real estate investing. With lower entry points, more people can participate, which in turn leads to (hopefully) increased capital flow into the sector.' The launch of the government-backed real estate tokenisation project and the success of platforms like Stake show the huge demand for this type of innovative property ownership. But as more properties are bought up by companies for fractional ownership, it could lead to higher prices in the property market. 'It's a valid concern, and one we take seriously. When more capital flows into real estate, demand can increase, which could potentially put upward pressure on prices. But it's important to look at the bigger picture,' said Blom. 'The goal isn't to inflate markets, it's to broaden access and enable more efficient use of property assets. If managed responsibly, tokenisation and fractional investing can help smooth the peaks and valleys of global real estate, not exacerbate them.' Vanessa Bayma, the founder of CBC Consultancy and Events, has invested in two fractional properties using Stake. Currently, she is getting a 6 per cent return with rental income. 'We were interested in crypto investing but found it volatile. And didn't have enough money to own properties outright,' she explained. She is interested in making more fractional property investments. 'Sometimes people are bedazzled by short-term investments such as crypto or volatile stocks. My father always said that real estate is the safest investment. Granted, we can't afford to buy full properties, but this style of investment allows us to diversify.'
Business Recorder
03-06-2025
- Business
- Business Recorder
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
