Dubai real estate: How to buy property for $545

Arabian Business

21-06-2025

Dubai is reshaping access to real estate with a new government-backed platform that lets investors own a slice of the city's booming property market for as little as AED 2,000.
By turning property into digital tokens, the initiative introduces a new model of ownership that aims to make real estate investment faster, more flexible, and more accessible — all within a regulated blockchain ecosystem.
But, what exactly is Dubai real estate tokenization and how does it actually work?
How tokenized property investment works in Dubai
Dubai's tokenised property system operates through platforms licensed by the Virtual Assets Regulatory Authority (VARA).
Investors must be UAE residents over 18 with a valid Emirates ID. After completing Know Your Customer (KYC) verification, they can browse a list of available properties and invest from as little as AED 2,000.
Each property is split into digital tokens recorded on the XRP Ledger blockchain. The Dubai Land Department (DLD) issues Property Token Ownership Certificates, linking the digital shares to official land records and ensuring legal recognition.
'The process is surprisingly straightforward,' P.P. Varghese, Head of Professional Services at Cushman & Wakefield Core told Arabian Business. The process includes:
Access the platform: Visit mint.prypco.com with a valid UAE ID
Browse properties: Investors can access comprehensive property details, ranging from pricing, risk factors, and technical specifications to the minimum investment required
Make investment: Purchase tokenized shares starting from just AED 2,000 ($545)
Complete transaction: All transactions are carried out exclusively in UAE Dirhams, with no use of cryptocurrencies during the pilot phase
Receive tokens: Title deeds are tokenized on the XRP Ledger network, with direct integration to Dubai's land registry
However, ownership is recorded through two layers: blockchain-based digital wallets provided by the platform, and legal documentation issued by the DLD.
'Buyers hold their tokens in digital wallets provided by the licensed platform. At the same time, the DLD steps in to make the ownership official ensuring that ownership is both securely recorded online and legally protected offline,' Zacky Sajjad, Director of Business Development at Cavendish Maxwell said.
This ensures that token holders' rights are enforceable under Dubai law, and that the digital record is always backed by a legally recognised title deed.
Why was Dubai real estate tokenization launched?
The initiative was developed by VARA, the DLD, the UAE Central Bank, and the Dubai Future Foundation.
'Dubai's launch of the first licensed tokenised real estate project in the MENA region marks a pivotal moment,' Adela Mues, Partner at Reed Smith said.
'This initiative is not simply a technological experiment; it is a comprehensive reimagining of how real estate can be accessed, traded, and governed.'
VARA oversees all Virtual Asset Service Providers (VASPs) across most of Dubai, excluding DIFC.
These providers must comply with strict KYC and Anti-Money Laundering (AML) standards. 'VARA enforces a stringent compliance framework,' Sajjad explained, adding that licensed VASPs conduct due diligence, identify beneficial owners, monitor transactions, and report suspicious activity.
VASPs must also retain transaction records for at least eight years, ensuring transparency and regulatory oversight, he said.
However, the entry point is a key feature. 'In Dubai's expensive property market where average villa prices hit AED 6 million ($1.6 million), the AED 2,000 ($545) minimum investment represents a 99.97 per cent reduction in entry costs' Varghese said, adding that his opens premium real estate to investors previously priced out of the market.
'The structure appeals primarily to smaller retail investors,' he explained. 'Tokenization democratizes access, allowing middle-class or retail investors to own fractions of premium properties.'
According to Sajjad, this model targets investors who are either unable or unwilling to purchase properties outright. Ownership per individual is capped at 20 per cent of any single property.
Mues further outlined several advantages of tokenised investment compared to traditional buying. 'One of the most transformative benefits of tokenised real estate is the ability to split property into fractional shares, greatly improving liquidity in a traditionally illiquid market,' she said, adding that these tokens can be traded on secondary markets, offering flexibility in exiting positions.
Additionally, lower capital requirements are another major advantage. This approach allow younger generations to 'get on the property ladder' in a very different and more accessible way than their parents, Mues said.
Moreover, transaction speed is also improved. 'Smart contracts and digital workflows used on tokenised real estate platforms to automate verification and execution of deals do away with the need for involving numerous intermediaries in the real estate transaction process,' she noted.
Another advantage is that transparency and security are built into the blockchain infrastructure.
'Every token transaction is recorded on an immutable distributed ledger, bringing a level of transparency and security to real estate deals that traditional methods have struggled to match,' Mues said, adding that blockchain's cryptographic protocols address fraud risks and create a single, verifiable 'source of truth.'
How much does it cost to invest in tokenized Dubai property?
Investing in tokenised property comes with defined costs. According to Sajjad, investors pay a 2 per cent fee on the amount invested, a 1 per cent exit fee when selling, and a 0.5 per cent annual management fee. If the property appreciates in value, a capital appreciation fee of up to 15 per cent may apply.
Tokenised transactions also benefit from a reduced DLD fee — 2 per cent instead of the traditional 4 per cent.
'Automation reduces the need for middlemen,' Varghese said, adding fewer intermediaries means faster and more cost-effective deals.
Dubai's real estate market recorded AED 66.8 billion in sales in May 2025, indicating strong investor confidence.
'The robust traditional sales activity creates ideal conditions for tokenization,' he explained, adding that this shows that the market can absorb this new method of investment without disruption.
The DLD projects that tokenised assets could make up 7 per cent of the market by 2033 — equivalent to AED60 billion ($16 billion).
What are some potential challenges that could arise with tokenized real estate?
Despite the potential, challenges remain. Varghese cautioned that 'market liquidity issues remain a major concern even in Dubai. Early tokenized real estate platforms globally struggle with low trading volumes, wide bid-ask spreads, and limited secondary markets.'
Mues also noted that investors give up some autonomy. 'since ownership is fractional and decisions like selling are often made by majority vote, investors must be willing to compromise on autonomy.'
Although the system uses blockchain infrastructure, transactions currently take place in UAE Dirhams.
'At present, crypto purchases are pegged to fiat currencies, and fractional ownership is likely to become a growth segment within the residential sector within Dubai' Sajjad said, adding that as regulations evolve, crypto payments may be integrated.
Token prices are set in AED or USD and pegged to real-time conversion rates, ensuring price stability even if crypto is introduced later.
Currently focused on residential property, tokenization could soon extend to commercial and industrial sectors, according to Varghese. 'All three types of real estate will play a role in tokenization expansion,' he said, adding, the real 'game-changer' lies in capital-intensive projects such as infrastructure and data centres.
'This means tokenization could enable ownership of massive projects that traditionally required hundreds of millions or billions in capital—previously limiting participation to sovereign wealth funds, major developers, or large institutions.'
Dubai's strategic positioning a major benefit for property tokenization
Dubai's strategic position and development pipeline make it well suited for this kind of innovation, Varghese explained, adding that the emirate's infrastructure connects three continents and benefits from government backing..
However, he noted that mainstream adoption will depend on several factors such as liquidity infrastructure, regulatory clarity, market education, institutional adoption, and global platform integration.
'Dubai's pilot represents a critical first step, but mainstream adoption requires addressing the fundamental liquidity challenges that have plagued tokenized real estate platforms, alongside continued regulatory support, technological improvements, and broader market education globally,' he said.
Mues believes the long-term implications could be far-reaching. 'Dubai is clearly positioning itself at the forefront of integrating crypto and blockchain technology into the real estate sector. It is not hard to imagine a future Dubai where the majority, If not all real estate transactions will occur on secure blockchain systems, involving the use of smart contracts and digital land registries, alongside tokenisation of title (whether fractionalised or not),' she said, adding that legal changes will likely define how smart contracts can constitute binding agreements.
Echoing the sentiment, Sajjad said: 'Dubai and the UAE is always at the forefront of embracing cutting-edge technologies and with a dynamic, multinational and growing population, this is likely to be a significant segment of the market in the future.'
'While still in its early stages, Dubai's strategic positioning, openness to digital innovation, and investor-friendly climate suggest that real estate tokenistion has the potential to become a major investment channel in the region, for both local and international retail investors,' he concluded.