How Tokenization is making Dubai Real Estate Affordable?

Dubai’s property market has always been a promising opportunity for investors, but high entry costs have often kept buyers on the sidelines. But with the introduction of tokenized real estate in Dubai, it’s going to be easier than ever. Investors can now own a fraction of premium properties for as little as Dh2,000. This makes Dubai real estate more accessible and affordable for investors. Let’s take a look at the details of the real estate tokenization and the procedures to invest in it.

If you’re looking for properties for sale in Dubai, tokenization is opening the door to premium assets at a fraction of the usual price. Instead of saving for years to buy property in Dubai, investors can now start with as little as Dh2,000 and still enjoy ownership benefits, rental returns, and long-term appreciation.

What is Real Estate Tokenization?

Property tokenization is the process of converting a real estate asset into digital tokens recorded on a blockchain. Each token represents fractional ownership in the property. Instead of buying an entire apartment, villa, or office, investors can buy shares in Dubai property through tokens.

For example, a Dh1.5 million apartment in Mohammed Bin Rashid City was recently tokenized and made available to nearly 150 investors. Each participant was able to enter the market at a fraction of the usual cost. This shows how fractional property investment in the UAE can make property purchasing more accessible, that were once limited to high-net-worth individuals.

 

How to Invest in Dubai Real Estate Under this Model?

To invest in tokenized real estate in Dubai, UAE residents first need to register on the Prypco Mint platform using their Emirates ID and complete basic verification. 

Once registered, they can browse available properties, review details such as token price, rental yields, and market value, and decide how much they want to invest. With a minimum entry of just Dh2,000, investors can purchase a fractional ownership token. 

A maximum of 20% of the total tokens in a property can be held by one individual. Payments can be made through debit or credit cards and bank transfers, and each token is securely recorded on the blockchain. 

Investors then begin earning monthly rental income if the property is leased, while also benefiting from capital appreciation. When ready to exit, they can either sell their tokens on the Prypco Mint marketplace or cash out if the property itself is sold, with profits distributed according to ownership share.

How is the Token Value Calculated?

One of the most common questions investors ask about tokenized real estate in Dubai is how the value of each token is determined. The calculation is straightforward. Every square metre of a property is divided into 10,000 tokens. For example, if a property measures 130 square metres, it is split into 1.3 million tokens. The total purchase price of the property is then divided by the number of tokens to determine the cost of each one.

So, if a property in Dubai is valued at Dh2.6 million, each token would be priced at just Dh2. This model makes it possible for UAE residents to invest in fractional property investment in the UAE without needing a large sum of money upfront. It also allows investors to buy shares in Dubai property that were once out of reach. 

By linking token values directly to real property prices, investors gain a clear and fair entry point into the Dubai tokenized property market.

What Are the Fees for Investing in Tokenized Real Estate in Dubai?

When exploring tokenized real estate in Dubai, investors need to understand the associated costs. According to Prypco Mint, a 2% entry fee is charged when making an investment. If an investor decides to sell their tokens or if the property itself is sold, a 1% exit fee applies. 

Additionally, there is a 0.5% annual management fee, which covers the operational costs of running the platform. In the event of a property sale, a capital appreciation fee of up to 15% is charged, depending on the increase in the property’s value.

Apart from platform-related fees, there is also a Dubai Land Department (DLD) fee. For tokenized properties, the DLD applies a 2% registration fee for issuing the tokenized title deed in the investor’s name. This fee is 50% lower than the standard DLD fee applied to traditional property transactions. This makes fractional property investment in the UAE even more cost-efficient.

The growth of tokenized real estate in Dubai is creating new opportunities for residents. With entry starting from just Dh2,000, people can now own a share in premium properties that were once out of reach. Investors not only benefit from potential rental income and property appreciation but also enjoy lower fees compared to traditional real estate purchases. While it’s important to consider risks and costs, the chance to buy shares in Dubai property through fractional ownership is making real estate in Dubai more accessible than ever. For UAE residents today, and international investors soon, this model could shape the future of the Dubai property market.