Latest news with #Prypco
Time of India
13-07-2025
- Business
- Time of India
UAE: What is real estate tokenization? Dubai's Prypco sells out Dh1.75 million tokenized villa in under 5 mins
Tokenized real estate is projected to make up 7% of Dubai's property market by 2033, with an estimated value of Dh60 billion/ Representative Image TL;DR Prypco Mint sold a tokenized Dubai villa worth Dh1.75M in under five minutes to 169 investors. Real estate tokenization enables fractional ownership, offering secure, low-barrier access via blockchain. Tokenized assets could make up 7% of Dubai's real estate market, worth Dh60B by 2033. A Breakthrough Moment for Property Investment in Dubai As Dubai positions itself at the forefront of innovation in real estate, a new form of property ownership is rapidly gaining traction — real estate tokenization. This digital-first model is making real estate more accessible, efficient, and inclusive, and one company is leading the charge: Prypco Mint. In its latest milestone, Dubai-based tokenization platform Prypco Mint sold out its third tokenized property, a Dh1.75 million villa in Dubailand's Rukan Community, in under five minutes. The property was co-owned by 169 investors representing 40 different nationalities, each investing an average of Dh10,355. This achievement builds on a strong track record for the company. Prypco's first tokenized property was funded in under 24 hours, and its second was subscribed in just two minutes. Currently, only individuals with a valid Emirates ID can invest through the platform, but Prypco is preparing to open its marketplace to international investors, expanding access to Dubai's high-growth real estate sector. The momentum continues, with two more tokenized properties set to launch on July 15. These developments come as tokenized assets are projected to account for 7% of Dubai's real estate market by 2033, representing a potential market size of Dh60 billion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo What Is Real Estate Tokenization ? Real estate tokenization is a method of transforming the value of a physical property into digital units called tokens. These tokens are stored and managed on a blockchain, a secure, decentralized digital ledger that records all transactions. Each token represents a fractional ownership stake in the property, allowing multiple investors to collectively own a piece of real estate without needing to buy the entire asset. To put it simply, imagine dividing a property into a million tiny digital pieces. If someone buys 10,000 of those pieces, they effectively own 1% of that property. This fractional ownership model allows people to invest according to their budget, dramatically lowering the traditional barriers to entering real estate markets. The blockchain technology behind this system ensures that ownership records are tamper-proof, transparent, and secure. All changes to the records are immediately visible to all parties, significantly reducing the potential for fraud and disputes. In essence, tokenization removes the traditional complexities of property transactions, like endless paperwork, slow transfers, and high entry costs, replacing them with a digital system that is faster, more accessible, and easier to manage. Why This Matters: The Key Benefits of Tokenized Real Estate Tokenized real estate is not just a trend, it's a transformation in how people can access and benefit from property investment. Here's how: Increased Liquidity Unlike traditional real estate, where selling a property can take months, tokenized assets allow owners to buy and sell fractional shares easily, making it simpler to exit or adjust investments as needed. Lower Barriers to Entry Historically, investing in property required large capital commitments, often tens or hundreds of thousands of dollars. Tokenization reduces this threshold dramatically, with minimum investments on platforms like Prypco starting as low as Dh2,000 (approximately $540). Transparency and Security Because all transactions and ownership data are recorded on blockchain, every action is verifiable, and data cannot be changed retroactively. This makes the system more trustworthy and significantly reduces the risk of fraud. Global Participation Tokenized real estate platforms enable cross-border investment. Although Prypco currently only allows Emirates ID holders to invest, it has announced plans to welcome international investors soon, potentially opening Dubai's property market to a much larger global audience. Cost and Time Efficiency Digital transactions are generally faster and cheaper than traditional real estate deals. A recent survey by EY showed that 58% of high-net-worth investors view lower transaction costs as a major incentive to explore tokenized assets. Alignment with National Vision The push for tokenized real estate aligns closely with the Dubai Economic Agenda D33 and the Dubai Real Estate Sector Strategy 2033, both of which emphasize innovation, digitization, and economic diversification. Who Is Prypco Mint and What Are They Building? Prypco Mint is a licensed and regulated platform specializing in real estate tokenization, headquartered in Dubai. The company is officially licensed by the Dubai Virtual Assets Regulatory Authority (VARA) and operates in strategic partnership with the Dubai Land Department (DLD), two institutions central to real estate governance and innovation in the UAE. Prypco's mission is to modernize real estate investment by making it more inclusive, efficient, and secure. The platform allows investors to select properties, choose the number of tokens they want to purchase, and complete transactions digitally, all while maintaining full compliance with legal frameworks. By enabling fractional ownership, Prypco gives investors the ability to diversify their portfolios, enter premium real estate markets with smaller budgets, and track their holdings in real time through digital dashboards. In a region where traditional real estate processes can still be manual and time-intensive, Prypco represents a leap forward. The platform is being positioned as a future-ready solution aligned with Dubai's vision of becoming a global hub for digital assets and smart city innovation. The Future of Real Estate is Fractional, Digital, and Borderless The growing interest in platforms like Prypco shows a shift in how people view and access real estate. Tokenization is no longer just a theoretical concept; it is an operational model being deployed successfully in a major global city. With strong regulatory backing, enthusiastic investor response, and a roadmap for international expansion, Prypco is paving the way for a more accessible and efficient real estate market. Tokenized real estate is opening opportunities not only for high-net-worth individuals but also for first-time investors, expatriates, and global participants looking to enter Dubai's thriving property sector. If projections hold true, by 2033, Dh60 billion worth of Dubai real estate could be tokenized. That means everyday investors from around the world might soon co-own villas, apartments, and buildings in one of the world's most dynamic real estate markets, all without ever setting foot in a brokerage office. FAQs: Q. What is real estate tokenization? Real estate tokenization is the process of turning a property into digital tokens on a blockchain, allowing people to buy small shares and co-own the property. Q. How does tokenization make investing easier? It lowers the cost to enter, lets investors buy fractions of a property, and allows quicker, more secure transactions through blockchain technology. Q. What did Prypco Mint recently achieve? Prypco Mint sold a Dh1.75 million tokenized villa in under five minutes to 169 investors from 40 nationalities, showing strong demand. Q. Who can invest through Prypco Mint? Currently, only Emirates ID holders can invest, but Prypco plans to open to international investors soon. Q. How big can tokenized real estate become in Dubai? By 2033, tokenized assets are expected to make up 7% of Dubai's real estate market, with a projected value of Dh60 billion.
The National
12-06-2025
- Business
- The National
How real estate tokenisation aims to make buying property in Dubai affordable
Dubai's second tokenised real estate project sold out in a record-breaking time of less than two minutes, the emirate's Land Department said, illustrating the high demand amid a housing boom. The property is a one-bedroom apartment in Kensington Waters, Mohammed Bin Rashid City, valued at Dh1.5 million ($408,441), offered at a discounted rate compared to its estimated market value of Dh1.8 million, project promoters Prypco said in a statement. It attracted 149 investors. UAE residents holding valid Emirates IDs can pay as little as Dh2,000 for a share of this new property. The scheme is expected to open to international investors in its next phase, the company said. Launched on May 25, it is being implemented by Prypco Mint platform, in collaboration with Dubai's Virtual Assets Regulatory Authority (Vara), the UAE Central Bank and the Dubai Future Foundation (DFF) through the Real Estate Sandbox. The platform's first property, a two-bedroom apartment in Business Bay, attracted 224 investors, with an average input of Dh10,714. Listed at Dh2.4 million, below its Dubai Land Department (DLD) valuation of Dh2.89 million, it was fully funded within one day. The land department has invited those interested to register early and set up their accounts to take advantage of coming offerings before they sell out. Tokenisation caters to a particular segment in the market, featuring people who wanted to join the real estate party but never had the invitation, said Mario Volpi, head of brokerage at Novvi Properties. "It's relatively easy to buy in and buy out. However, there is just one company offering it now. So it's a bit of a closed shop in that respect." What is property tokenisation? At a basic level, tokenisation converts a physical real estate asset into digital shares – known as tokens – recorded on a blockchain. Each token represents fractional ownership in the property, allowing a number of investors to participate at a lower entry point than traditional real estate, said P.P. Varghese, head of professional services at Cushman & Wakefield Core. "In principle, it's an alternative way to structure and record ownership, but the underlying asset remains the same: the property still exists, generates income and requires the same fundamentals to perform over time," he said. "Tokenisation doesn't replace the traditional drivers of value in real estate. Asset quality, location, tenancy, governance and market dynamics continue to be the factors that ultimately determine an asset's performance. The technology may change how ownership is accessed and traded, but it doesn't change what makes a property successful." How to invest under this model? Currently in Dubai, investors are being encouraged to contact the DLD to express interest in available projects, said Matthew Green, head of research - Mena at CBRE. "However, over time, we would expect the market to open up further, with different avenues to acquire these assets to emerge, likely through a combination of official government channels and also directly through other market participants, including developers, funds and other registered entities." Risks and returns In terms of returns, tokenised real estate mirrors traditional property investment: rental yields, capital appreciation and long-term market growth. Where tokenisation introduces additional variables is in liquidity, pricing transparency, regulatory oversight and platform stability – all of which remain relatively early stage in most global markets, including Dubai, Cushman & Wakefield Core said. "We advise investors to approach tokenisation with the same discipline they would apply to any other real estate investment," Mr Varghese said. "The structure may allow fractional access, but the underlying asset still requires thorough due diligence." CBRE's Mr Green highlighted how the tokenised asset is open to fluctuations in the supply and demand of property, and related pricing. Outside of that, the risks are related to technology, the systems and platforms that house and trade these assets, he added. Advantages and disadvantages Tokenisation ultimately helps to expand a market by diversifying the investor pool, creating liquidity, removing barriers to entry (time, location, investment size, etc) and facilitating an easier and quicker method to participate in the market, Mr Green said. From a developer or owner perspective, it also creates another potential avenue for divestment, offering a tangible alternative for project fund-raising, while at the same time also attracting an entirely new source of investors to enter the market, he added. However, Mr Varghese said the disadvantages are equally important to acknowledge. The regulatory frameworks are still developing, platforms vary in quality and oversight, and in many cases, secondary trading markets remain thin. "Transaction costs can also become disproportionately high, particularly at the smaller investment sizes that tokenisation often targets. When you factor in platform fees, blockchain gas fees, legal expenses and regulatory compliance costs, the total cost of entry can easily exceed what investors might pay in a conventional real estate transaction," he warned. "For very small ticket sizes - say, investments of $100 - these fixed costs can quickly erode returns. Even dividend payouts can be costly to process at scale, depending on the platform architecture." There are also valuation challenges specific to tokenised assets, Mr Varghese said. "While fractional ownership creates access, it can reduce liquidity compared to traditional whole-asset ownership, which may lead investors to apply discounts when pricing tokens. Conversely, at times of heightened retail interest, tokens may trade at premiums that don't fully reflect underlying asset fundamentals. That can create disconnects between actual property performance and token pricing," he explained. Value of tokenised real estate market The land department projects Dubai's real estate tokenisation market to reach Dh60 billion by 2033, representing 7 per cent of the emirate's total property transactions. "Dubai has many of the ingredients in place to explore tokenisation at scale: an openness to financial innovation, strong regulatory bodies, and significant cross-border capital flows," Mr Varghese said. "The market is watching the evolution of tokenisation carefully, and we expect to see early activity particularly in smaller-scale residential and niche assets. It's likely that tokenisation will find its place in the market over time, but for now, it's more complementary than entirely disruptive."
Khaleej Times
11-06-2025
- Business
- Khaleej Times
Dubai: Second tokenised property sold in record time of under 2 minutes
The second tokenised property was fully funded in a record-breaking one minute and 58 seconds, attracting 149 investors from 35 nationalities, the Dubai Land Department said on Wednesday. This strong demand pushed the waiting list to over 10,700 investors, reflecting rising confidence and strong interest in digital real estate ownership solutions across the emirate, it said. 'The demand blew us away. Tokens were snapped up faster than anyone expected, and your belief and swift action made this possible. Don't worry, our next property drop is coming soon,' Prypco said after the property was sold in a record time. The first tokenised project was fully funded within a day. The property attracted 224 investors from over 40 nationalities, with an average investment amount of Dh10,714. In May, the Dubai Land Department (DLD) launched the region's first tokenised real estate investment project through the 'Prypco Mint' platform in collaboration with the Virtual Assets Regulatory Authority (Vara), the Central Bank of the UAE, the Dubai Future Foundation (DFF) through the Real Estate Sandbox. The platform allows fractional investment in premium Dubai properties through blockchain-based tokens starting from just Dh2,000. The first tokenized unit was based in one of Damac Properties projects in Business Bay while the second listing featured a one-bedroom apartment at Kensington Waters in Mohammed Bin Rashid City, developed by Ellington. Both the properties were priced below market to attract more investors. 'As the platform expands its projects and partnerships, it is helping to shape a future where tokenized assets are expected to become a central part of Dubai's property market by 2033. Amid this momentum, Dubai Land Department invites interested individuals to register early and set up their accounts to take advantage of upcoming offerings before they sell out, unlocking investment opportunities in one of the world's most dynamic and innovative real estate destinations,' the Dubai Land Department said on Wednesday.
Khaleej Times
09-06-2025
- Business
- Khaleej Times
Dubai: Second tokenised property to be offered at discounted rate this week
The second tokenised property will be launched in Dubai this week, allowing residents to invest in the red-hot real estate market from as low as Dh2,000. Launched at Prypco Mint, the first tokenised unit from Damac Properties was fully funded in just one day last month, setting a regional benchmark for speed, demand, and investor confidence. The property attracted 224 investors from over 40 nationalities, with an average investment amount of Dh10,714. The second tokenised property will go live on Wednesday, June 11, at 11 am on the Prypco Mint. 'Following the remarkable success of the debut property, which was fully funded within 24 hours, we're excited to launch our second tokenised property on June 11, 2025. This listing features a one-bedroom apartment at Kensington Waters in Mohammed Bin Rashid City, developed by Ellington,' said Amira Sajwani, founder and CEO of Prypco. As an open, industry-first platform, she said Prypco Mint works with leading developers across the market to give investors access to the best opportunities in real estate, beyond any single developer affiliation. The new property is priced at Dh1.5 million, below its independently assessed market value of Dh1.9 million. 'We're focused on finding great deals and high-quality properties for our community, and this is another example of us delivering strong value for our investors,' she added. With a market value of Dh3 million, the first property was offered at a discount rate of Dh2.4 million. The Dubai Land Department said the waitlist exceeded 6,000 requests after the launch of the first tokenised property. 'It's clear there's a strong and growing demand for this new model of real estate investment. We're confident the second tokenised property will see an equally positive response. It's exciting to see investors embrace the benefits of liquidity, transparency, and accessibility, qualities that are transforming real estate from a traditionally static asset class into something far more dynamic and inclusive,' said Amira Sajwani. As awareness around tokenised property continues to grow, Prypco's founder said the biggest beneficiaries will be everyday residents who have traditionally been priced out of real estate investment. 'It's about financial inclusion, flexibility, and control. Residents can now start building their property portfolio in a smarter, more accessible way, whether they're investing for the first time or looking to diversify their assets,' she added.
Khaleej Times
06-06-2025
- Business
- Khaleej Times
UAE: How to own a stake in property for as little as Dh500
Buying property in some parts of the UAE has become out of reach for many people, but there are solutions. One option is to buy a portion of the space instead of the whole thing. This is known as fractional ownership and thanks to technology, it has become cheaper and more transparent. Companies like Stake and SmartCrowd offer investors the chance to buy small stakes in properties from around Dh500. For example, Stake currently has six properties available to invest in, including a one-bedroom apartment in Downtown Dubai, with a projected net yield/income of 5.1 per cent. Recently, we saw the launch of a new type of fractional property ownership called real estate tokenisation. When you buy a portion of a property, it's recorded on the blockchain, and you get a digital token to prove ownership. The platform is called Prypco Mint and it's a collaboration between property company Prypco and the Dubai Land Department (DLD). Matt Blom, co-founder at Tokinvest, said: 'Fractional ownership opens the doors of real estate investing to a broader, more diverse pool of investors. Traditionally, property investment required significant capital and often came with geographic or legal barriers. But with fractional models, especially those powered by blockchain and tokenisation, investors can access high-quality, income-generating assets at a fraction of the cost.' Prypco Mint's first listed property — a two-bedroom apartment in Damac Prive Tower in Dubai's Business Bay — was fully funded within a day. It attracted more than 200 investors from over 40 nationalities, with an average investment of Dh10,714. Following the platform's strong debut, multiple developers have shown interest in listing their properties. The platform currently has a waiting list of more than 6,000. How it works Through the Prypco Mint platform, investors can buy small shares, or fractions, of premium Dubai properties, with a minimum investment of Dh2,000. These shares, which are in the form of digital tokens, can earn returns through both rental income and rising property values. At the moment, the scheme is only open to UAE residents with an Emirates ID, but there are plans to open it up to international investors in the future. All transactions are done in UAE dirhams and no cryptocurrency is involved during this trial phase. Investors will get full access to detailed information about the properties, including pricing, risks, and minimum investment amounts. Toby Young, a Dubai-based digital assets strategist, said: 'The scheme is aimed at anyone and everyone assuming they meet the minimum investment criteria. The idea behind fractionalising real estate is to democratise ownership and make assets available to everyone, not just the select few.' Raising the Stakes The DLD/Prypco pilot scheme is along the same lines as that of Stake, a private company that was set up in 2021 and which has been at the forefront of fractional property ownership. It allows people to invest as little as Dh500 to own a fraction of a property. It has already funded more than 400 properties worth more than Dh1 billion in transactions. Rami Tabbara, co-founder and co-CEO at Stake, said that fractional ownership can often be a difficult concept to explain to people. 'It's a new concept for many. People naturally associate real estate with full ownership, large sums of money, and mountains of paperwork. But when we explain it as buying shares in a property, just like you'd buy shares in a company, it starts to make sense.' On Stake's app, there are only six properties currently available to invest in. Why such a low number? 'We prioritise quality over quantity. Every property goes through a strict underwriting process, and only the best listings and the best yielding opportunities make it to Stake,' Tabbara explained. Returns Stake's yearly investment returns average around 10 per cent, but this drops to a projected net yield (after costs have been taken into account) of around 5 per cent a year. Stake said it has been in active discussions with both the DLD and Dubai's digital assets regulator VARA to align its platform with the new regulatory framework around tokenised real estate. Tabbara expects his company to participate in the second phase of the pilot programme, which is scheduled to go live in the second half of this year. DLD said $16 billion (Dh58.7 billion) worth of real estate could be digitised by 2033. What about the DLD/Prypco pilot project's returns? The first property offered was sold at a discount to attract buyers, which equates to a higher yield. Returns on future properties will depend on the selling price, usage of the property, and whether it is a short- or long-term rental. 'That said, typical net yields are between 6-8 per cent after the aforementioned has been taken into account. I would expect similar new returns, with a few outliers above and below that range,' Young added. Investors also need to bear in mind that there may be a lock-up period for their investment. Innovation Dubai is making a name for itself as a leading crypto and blockchain hub, along with being a pioneer of real-world asset (RWA) tokenisation of property. The Prypco and DLD property platform means that a young professional in Dubai can invest in a prime villa or luxury apartment without the complexity or cost of full ownership. 'This isn't just innovation for innovation's sake. It's a structural shift in how wealth can be built and shared,' added Tokinvest's Blom. 'Fractional investment creates liquidity, flexibility, and access, which have been barriers in traditional real estate investing. With lower entry points, more people can participate, which in turn leads to (hopefully) increased capital flow into the sector.' The launch of the government-backed real estate tokenisation project and the success of platforms like Stake show the huge demand for this type of innovative property ownership. But as more properties are bought up by companies for fractional ownership, it could lead to higher prices in the property market. 'It's a valid concern, and one we take seriously. When more capital flows into real estate, demand can increase, which could potentially put upward pressure on prices. But it's important to look at the bigger picture,' said Blom. 'The goal isn't to inflate markets, it's to broaden access and enable more efficient use of property assets. If managed responsibly, tokenisation and fractional investing can help smooth the peaks and valleys of global real estate, not exacerbate them.' Vanessa Bayma, the founder of CBC Consultancy and Events, has invested in two fractional properties using Stake. Currently, she is getting a 6 per cent return with rental income. 'We were interested in crypto investing but found it volatile. And didn't have enough money to own properties outright,' she explained. She is interested in making more fractional property investments. 'Sometimes people are bedazzled by short-term investments such as crypto or volatile stocks. My father always said that real estate is the safest investment. Granted, we can't afford to buy full properties, but this style of investment allows us to diversify.'
