A one-BR apartment in Kensington Waters, MBR City, worth AED 1.5 million was offered at a discounted price and sold out in less than two minutes.The property drew interest from 149 investors who obtained fractional digital ownership of the apartment. Some invested
as little as AED 2,000. This is called fractional ownership, made possible through blockchain technology and supported by Dubai’s Virtual Assets ecosystem.

So, what exactly is tokenized real estate?

Tokenization means turning a real property into digital shares called tokens. Each token represents a small part of the property. Investors can buy these tokens with smaller amounts of money in this case, starting from just AED 2,000. The property earns rental income, can increase in value and follows market trends. But now, more people can afford to be part of it.

Who’s Behind this?

The PRYPCO MINT platform leads this project with major institutional support from the Dubai Land Department and Virtual Assets Regulatory Authority and UAE Central Bank and Dubai Future Foundation. The first project which featured a two-bedroom Business Bay apartment priced at AED 2.4 million drew 224 investors who completed funding within one day. The second launch moved faster than the first one did.

This new project sold out even faster in under two minutes.

But What About the Risks?

Yes, like all investments, there are a few things to watch out for

• There are extra costs like platform fees, legal fees and blockchain charges
• You may not be able to sell your tokens right away , the resale market is still
developing
• The value still depends on the usual real estate factors like location and
demand
• Regulations and platforms are still new, so some uncertainty remains

“Tokenization is for those who always wanted to invest, but never had the chance,” –
Mario Volpi, Real Estate Expert

Dubai Land Department expects tokenized real estate to grow into a AED 60 billion market by 2033, making up around 7% of all real estate transactions in the city. Tokenization, it’s rewriting the rules of access. It’s for the investor who doesn’t have millions but has ambition. For the resident who wants a stake in the city. For the next generation of
real estate.