In partnership with the ‘Prypco Mint’ platform, Dubai Land Department has launched its first tokenized real estate project in the MENA region. To secure this initiative, Dubai Land Department and the ‘Prypco Mint’ platform were in collaboration with the Virtual Assets Regulatory Authority or VARA.
Real estate tokenization is the division of real-world properties into bite-sized pieces of investment by using blockchain technology. This allows interested investors to purchase a stake in real estate projects solely for earning a return on investment.
The Dubai Land Department launched the first phase of tokenized real estate investment, which gets activated on mint.prypco.com. According to the official website, Prypco Mint offers 8% to 12% net annual ROI and fractional ownership of real estate on investments starting from 2,000 dirhams. Investors will receive their monthly rental income in their Prypco Mint Wallet.
Essentially, the new platform gives interested buyers a chance to invest in and own shares of real estate in Dubai. All transactions will be carried out in dirhams with no use of cryptocurrencies.
The tokenization will only be permitted through companies licensed by the Virtual Assets Regulatory Authority. The Dubai Land Department is responsible for reviewing and checking pricing before a listing is officially approved. Finally, the Central Bank of the United Arab Emirates will oversee the corporate accounts linked to real estate tokenization through the Client Money Account system.
The initiative to tokenize real estate originally arose from a strategic partnership agreement between Dubai Land Department, Prypco, and Ctrl Alt Solutions. While Prypco will offer the platform for investing in real estate, Blockchain platform Ctrl Alt Solutions is the designated tokenization provider, bringing relevant expertise in financial engineering and digital asset infrastructure.
With the tokenized real estate market evolving, tokenized assets are projected to comprise 7% of Dubai’s real estate market by 2033, which is an overall value of 60 million dirhams as per the original press release by Dubai Land Department.
