Fractional ownership and real estate tokens: The new way to own property
By revolutionising one of the world's most exclusive markets, tokenisation is transforming the traditional concept of property ownership in Dubai. What was once a cumbersome and complex process is now becoming seamless, transparent, and accessible to a broader range of investors.
Unlocking Real Estate
'Blockchain and tokenisation are making real estate more accessible, transparent, and efficient,' says Amira Sajwani, Founder and CEO of PRYPCO.
'By enabling fractional ownership, they open the door for a wider pool of investors to participate in high-value assets, without the traditional barriers.'
In a market historically dominated by large capital requirements and lengthy processes, tokenisation breaks down real estate into smaller, affordable units, allowing even smaller investors to hold stakes in premium properties.
At PRYPCO, the appetite for this new model has been overwhelming.
'Our first tokenised property, worth Dh2.4 million, was fully funded in under 24 hours by 224 investors,' Sajwani reveals. 'Our second property broke records, fully funded in less than 2 minutes, with 149 investors participating in an Dh1.5 million listing.'
She adds, 'PRYPCO Mint is aligning with Dubai Land Department's vision of a $16 billion tokenised real estate market by 2033. We believe tokenisation will become a mainstream investment route, unlocking liquidity, speeding up transactions, and empowering a new generation of real estate investors.'
Similarly, Riz Ahmed, CEO of SmartCrowd, highlights the technology's role in democratising property investment across the Mena region. 'SmartCrowd's introduction of regulated fractional property ownership proved that real estate can be digital, inclusive, and accessible to all investors, not just the wealthy. Dubai Land Department, in partnership with Ctrl+Alt and VARA, are enhancing ownership from SPV-based structures to on-chain, smart contract-based tokens. These digital tokens are replacing traditional title deeds, with full regulatory backing,' he explains.
The benefits are clear: 'Tokenised real estate means real-time settlement, full visibility, fair valuations, transparency, and the elimination of legacy delays and fees,' Ahmed notes.
Ahmed envisions tokenisation extending far beyond residential properties. 'What began with ready residential units is now expanding — tokenisation of real-world assets (RWA) will include warehouses, retail centers, data centers, schools, hospitals, and even mall parking lots.'
Fractional Ownership Democratising Real Estate
For decades, real estate has been considered the ultimate asset class — stable, profitable, and desirable. But for many first-time or small-scale investors, it has also remained stubbornly out of reach. High capital requirements, long-term commitments, complex legal processes, and property management responsibilities have made the sector accessible primarily to the wealthy. That, however, is changing fast.
'In the past, real estate was out of reach for many due to significant capital requirements, long-term commitments, and complex processes,' explains Sajwani. 'Fractional ownership removes those barriers.'
'At PRYPCO Mint, users can start investing with as little as Dh2,000 and begin earning rental income from the very same month,' Sajwani shares. 'This empowers individuals to diversify their portfolios without being locked into a full asset.'
The flexibility doesn't stop at affordability. PRYPCO's platform offers an open marketplace where users can list their tokens for sale, adding a layer of liquidity often missing in traditional property investment. 'We're not just offering investment,' Sajwani adds. 'We're building an inclusive future where real estate is no longer just for the wealthy.'
Ahmed weighs in, saying,'Traditional real estate requires massive capital, complex processes, and heavy responsibilities. We've eliminated those hurdles through fractional ownership.'
SmartCrowd's platform allows investments starting from just Dh500, offering access to regulated, income-generating assets without the burdens of mortgages or property management. 'No landlord headaches, no large down payments, and no paperwork,' Ahmed says. 'Every investment is fully managed. First-timers get a smooth entry into property, while seasoned investors can deploy $1 million across 10+ properties instead of locking it all into one.'
Fractional models are also making diversification easier than ever. Investors can now spread their risk across a range of asset classes — from holiday rentals and long-term leases to properties aimed at capital appreciation. 'You can diversify across locations, tenant profiles, and investment timeframes, all while maximising yield and maintaining liquidity,' Ahmed explains.
Robust Legal Frameworks
Property investment is becoming more accessible, secure, and transparent than ever before, supported by robust legal frameworks and proactive regulatory measures. 'The UAE is leading the way in creating robust legal frameworks for tokenised real estate,' says Sajwani. With the support of forward-thinking regulators like the Dubai Land Department, VARA, and the Central Bank, we now have a clear structure that recognises digital ownership and protects investors.'
This solid foundation is just the beginning. 'As adoption accelerates,' Sajwani adds, 'we'll see even more progress in areas like secondary market regulation. The commitment from both public and private sectors to innovate responsibly is what will continue to set the UAE apart as a global benchmark for tokenised property investment.'
Ahmed shares the positive outlook but also highlights the bigger challenges that lie ahead: 'Dubai is among the global leaders in creating a regulatory backbone for tokenised real estate. The Dubai Land Department (DLD) has begun issuing Tokenisation Certificates, linking blockchain-based property ownership with legal title. Meanwhile, the Virtual Assets Regulatory Authority (VARA) oversees digital asset issuance and trading, ensuring compliance with virtual asset laws.'
However, he cautions that despite Dubai's pioneering efforts, a global consensus remains elusive: 'Most jurisdictions have yet to recognise a token as equivalent to a deed or title, and there is currently no harmonised international framework. This makes cross-border tokenization complex.'
Building Investor Confidence
As the real estate market embraces the digital era, investor trust remains paramount. The rise of tokenised property investments has brought convenience and accessibility, but also questions about security and authenticity.
'At PRYPCO, investor trust is the foundation of everything we do,' says Sajwani. 'Every property listed on our platform undergoes rigorous due diligence and is backed by the necessary regulatory approvals, ensuring each token represents a genuine and verifiable share of ownership.'
This commitment extends beyond internal checks. PRYPCO's strategic partnerships reflect a strong regulatory alignment from close collaboration with the Dubai Land Department (DLD) to licensing under the Virtual Assets Regulatory Authority (VARA). The involvement of their official banking partner, Zand Bank, further underscores the platform's dedication to compliance and financial integrity.
One of the critical concerns in digital real estate investment is the handling of investor funds. 'Investor funds are safeguarded in a Client Money Account (CMA), as mandated by VARA and managed by Zand Bank,' Sajwani explains. 'These funds are held in the CMA until the transaction is completed, ensuring full transparency and operational integrity.'
Technology plays a vital role in enhancing security. PRYPCO leverages blockchain infrastructure to enable secure, real-time verification of every transaction. 'Our blockchain technology further strengthens transparency and trust,' Sajwani adds.
Echoing these sentiments, Ahmed highlights Dubai's comprehensive regulatory approach: 'Dubai has designed a multi-layered security and authenticity infrastructure for tokenized real estate, where strict regulatory oversight is provided by both VARA and the Dubai Land Department (DLD).'
He emphasises that only entities licensed by VARA and officially approved by the DLD are allowed to issue, market, or trade tokenized real estate products. A standout feature of this framework is the issuance of legally-backed Property Token Ownership Certificates by the DLD. 'These certificates ensure that tokens are fully aligned with traditional land registry systems, effectively transforming physical deeds into digital certificates,' he explains.
The Future Is Fractional
Moving beyond mere trends, tokenisation is reshaping how investors engage with property, making it more accessible, flexible, and digitally driven. Sajwani emphasises this structural evolution: 'This is not a trend, it's a structural shift in the industry. We're witnessing a redefinition of real estate ownership, driven by technology, changing investor behaviour, and regulatory innovation. Tokenisation isn't just making property more accessible; it's introducing a completely new way to engage with real estate, one that is digital, flexible, and inclusive.'
At PRYPCO Mint, the focus is on lasting impact rather than short-term gains. Sajwani points to strong market signals that underscore this change: 'The speed at which our properties are being funded, combined with growing demand from first-time buyers and experienced investors, shows that this model isn't just gaining traction, it's becoming the new standard.'
Ahmed frames tokenisation as the natural next step in fractional real estate investment and financial inclusion: 'I don't think tokenising the ownership of real estate is a passing trend. I believe it can be the next phase of fractional real estate investing and financial inclusion on a mass scale. Back in 2018, we were the first to work with the Dubai Financial Services Authority (DFSA) to make real estate accessible, fractional, and digital. That innovation broke the barriers to entry and proved that property doesn't have to be owned whole to be owned meaningfully.'
Looking ahead, he highlights ongoing advancements in regulatory frameworks: 'Now, the Dubai Land Department (DLD), in partnership with Ctrl+Alt and VARA, is taking that innovation further — building an advanced, institutional-grade framework by tokenising real estate ownership and embedding it on-chain. This enables seamless trading, transparency, and compliance at a scale never seen before.'
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