Dubai has taken a giant step in the future of real estate. When investment in tokenized property became a reality, you no longer need to purchase a property in the city to invest in the seemingly profitable property market, because now even a regular investor can acquire a stake in the city property market, without having to buy an apartment.
An amount over 9 million AED was sold within a month after implementing this new strategy on property, and the most interested individuals were the investors; the Indians, UAE, and Pakistan respectively.
It is not a matter of technology but more of a revolution that will introduce the region to the world of property ownership where entry rates become lower, accessibility becomes even, and it will be completely transparent.
What is Tokenised Real Estate?
One of the new means of purchasing property using tokenised estates is block chain technology. All the property is not sold outright into apartments or villas, but the property is divided into smaller fractions that are termed as tokens. Any person that wants to buy a part of the property can be seen as the investors and they sell these tokens to them.
To put it in plain words, this is the way it is operated:
- A property is broken in 1,000 tokens (or more).
- Every token shows a tiny bit of such property.
- You may purchase one or more tokens and these may be as low as AED 2,000.
- Depending on how many tokens you will have, you will get a rent or profits.
- The approach is also referred to as part ownership.
Meet Prypco Mint: The Platform Making It Happen
The company behind this revolution is Prypco and their studio is called Prypco Mint where the tokenized properties are available. The investors worldwide can access the site, choose one property there, and invest some amount of funds in real estates which once used to be open only to financially endowed people. Prypco Mint is incorporated in a pilot project which was initiated by the Dubai Land Department (DLD) in collaboration with:
- Dubai Future Foundation (DFF)
- Dubai Virtual Assets Regulatory Authority (VARA)
This makes the platform trustworthy and fully aligned with Dubai’s real estate and digital regulations.
Investors From India, UAE, and Pakistan Lead the Way
According to Khaleej Times, the platform raised over AED 9 million within a month of launching. Most of the investors came from:
- India
- United Arab Emirates
- Pakistan
Other active countries included the United States, Canada, and the United Kingdom.
This shows strong global interest in Dubai’s tokenised real estate market.
Properties Selling Out in Minutes
Two of the listed properties were sold out in record time:
1. Liv Residence, Dubai Marina
Fully funded in 3 minutes
Invested by 258 investors from 47 countries
Average investment: AED 7,210
2. Sobha Creek Vistas Grande
Fully funded in 10 minutes
Invested by 213 investors from 38 countries
Average investment: AED 7,512
Backed by Dubai’s Top Authorities
The fact that the testing and regulation of this project is done by big governmental divisions makes it more trustworthy:
- Dubai Land Department (DLD): Supervises the entire real estate of Dubai.
- Dubai Future Foundation (DFF): Promotes innovation and future generation technologies.
- VARA: Governance of any blockchain-related activities and virtual assets in Dubai.
This assures the investors that the system is well secured as well as well planned, and that it is not going anywhere.
The Future of Property Ownership Is Here
Dubai expects that by the year 2033 tokenized property will reach AED 60 billion, or most likely 7 percent of the total real estate market. This is yet to be proven that the city is not only experimenting but that it is creating a new reality in real estate. Whether an expat in Dubai or an overseas investor or someone attempting to venture into the world of property investment and does not have a huge budget, a tokenized investment in property has now become a reality and one that can now be trusted.
Final Thoughts
Dubai has yet again demonstrated why it is one of the world powerhouses in terms of innovation and investment. Integration of real estate with blockchain is allowing the city to offer smart, affordable and secure investment opportunities.
Have you ever dreamt of owning a property in Dubai but felt that this is way beyond your reach–then now your dream may come true.
