Tokenised property in Dubai: Who can invest, fees, ROI; 20 questions answered

Dubai launched the pilot phase of the “Real Estate Tokenisation Project” last month, with the first property recording an immense demand from small investors.

With just Dh2,000, UAE residents can invest in the property market through the Prypco Mint platform, which was launched by Prypco in partnership with the Dubai Land Department (DLD), the Virtual Assets Regulatory Authority (VARA), and Zand.

Here is what UAE investors need to know about this new investment opportunity in Dubai’s red-hot property market.

1. What is the tokenisation of the property market?

Tokenisation converts real estate assets into digital tokens recorded on blockchain technology. This allows fractional ownership in premium properties.

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2. What is the platform to invest?

Launched by Prypco in partnership with the Dubai Land Department (DLD), licensed by the Virtual Assets Regulatory Authority (Vara), Zand Bank, Prypco Mint is the platform for investors in the pilot phase.

3. What is the minimum investment?

Investors can invest from Dh2,000 onwards.

4. Who can invest? Can foreign investors invest in tokenised property?

Only UAE residents holding Emirates ID cards and aged 18 and above can invest.

5. How is the token value calculated?

The value of each token depends on the size and price of the property. Prypco Mint breaks down every square meter of a property into 10,000 tokens. So, a 130 sqm property is split into 1.3 million tokens. The value of a token is then calculated by dividing the purchase price of the property by the total number of tokens. So a property worth Dh2.6 million costs Dh2 per token.

6. How many tokens can one buy?

A maximum of 20 per cent of the total tokens in a single property can be bought.

7. How can one buy tokens?

UAE residents can invest through bank transfers or debit/credit cards. Bitcoin and other cryptocurrencies are not accepted.

 8. Is there a lock-in period?

If you purchased a token through Prypco Mint, no lock-in period applies.

9. What are the benefits?

Some of the key benefits are low investment entry, reduced fees compared to traditional real estate transactions, diversification of portfolio with fractional investments in multiple properties and monthly rental income as well as capital appreciation of the token.

10. Do investors need to register with Prypco Mint?

Yes. UAE residents are required to provide documents to register with the platform. Prypco Mint is the only platform in Dubai for such investment opportunities. More platforms are likely to be rolled out later.

 11. Is there a fee for investing?

According to Prypco Mint, a two per cent fee is applicable on the investment and one per cent exit fee on exiting the investment, whether it’s when you sell your tokens or when the property is sold. There is also a 0.5 per cent annual management fee. On the sale of the property, a capital appreciation fee ranging up to 15 per cent is applied, based on the property’s value increase, according to Prypco Mint.

12. Is there a DLD fee also?

There is a two per cent DLD fee for registering the tokenised title deed in your name, which is 50 per cent lower than the standard DLD fee.

13. How can investors exit their investment?

Investors have two options for exiting their investment: 1. Selling their tokens on the Prypco Mint Marketplace once the lock-in period expires. They can withdraw the proceeds to their bank account. 2. If the majority of investors vote to sell the property, it will be sold. The proceeds, after relevant costs are deducted, will be distributed to investors based on their ownership share, and they can withdraw their share of the proceeds to their bank account.

14. How much return should investors expect?

According to Prypco Mint, return on investment could range between 8 to 12 per cent per year.

15. Will the owner receive monthly rental income?

Yes. Buyers will receive monthly income if the property is rented out. But if the token is sold before the monthly income is distributed, investors will not receive the income.

16. Who will pay for damages or major changes?

If there’s a material change, like the need for major repairs that could affect the property’s value or returns, Prypco will notify all investors. They will then have the opportunity to vote on how to handle the situation. A decision requires a majority vote of 51 per cent of the investors.

17. Is it secure to invest in tokenised property?

It is a highly secure and safe investment as all the owners are registered on the blockchain technology.

18. How many tokenised properties have been listed and fully funded?

The first tokenised property listed on Prypco Mint was fully funded within a day. It was a Damac Properties unit, priced at Dh2.4 million compared to the market price of Dh3 million. The second property will be listed on June 11, 2025.

19. What is the growth potential?

It is estimated that Dubai’s real estate tokenisation sector is projected to reach Dh60 billion by 2033, accounting for 7 per cent of the total real estate transactions. This shows that there is a strong growth potential.

20. Why did Dubai introduce tokenisation of the property market?

The objective is to attract global technology firms and open new investment opportunities for the investor market. It seeks to diversify property ownership by allowing multiple investors to co-own a single property through tokenised real estate assets.