Dubai Launches Region’s First Coded Real Estate Project

The Dubai Land Department (DLD) has launched the region’s first tokenised real estate project via the Prepco Mint platform, in partnership with Prepco Holding, and in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE, and the Dubai Future Foundation through Real Estate Sandbox.

Zand Digital Bank was selected as the banking sector partner for the pilot phase of the project, making Dubai the first city in the Middle East and North Africa (MENA) region to adopt a licensed real estate tokenization platform.

The department has begun the pilot phase for investing in tokenised real estate, marking the official launch of the online platform mint.prypco.com, which enables users to realise profits and own a stake in a distinctive real estate project in Dubai.

The platform is now available exclusively to Emirates ID holders, and will soon be expanded and rolled out globally, with the inclusion of more platforms in subsequent phases. This will strengthen Dubai’s position as a leading center for tokenized real estate innovation.

Innovative Opportunities

The project offers innovative investment opportunities for individuals by purchasing tokenized shares in ready-to-use properties in Dubai, starting from $544.51. Transactions are conducted solely in UAE dirhams, with no cryptocurrency transactions in the initial phase.

Purchases are made through the platform, which allows investors to view all property details, from price, risks, and technical specifications to the minimum investment.

This initiative comes within the framework of a strategic partnership agreement between DLD, Prepco Holding, and Control Alt Solutions, to develop an innovative regulatory and operational environment for real estate tokenisation.

This includes strengthening legislation, disseminating knowledge, and attracting companies specialized in tokenizing assets, in addition to supporting innovation efforts and protecting investor rights. With the development of the market, tokenized assets are expected to represent up to 7% of Dubai’s real estate market by 2033, valued at $16 billion. Prepco Mint is a cornerstone of this revolution.

Project Management

The real estate tokenisation project is managed through a joint collaboration between the DLD, as the regulatory body for physical real estate assets, and the VARA, as the regulatory body for digital assets, with the aim of ensuring comprehensive and transparent regulation of this type of innovative real estate project.

Currently, the Central Bank of the UAE plays a pivotal role in supervising the opening of accounts for companies associated with real estate tokenization through what is known as a Client Money Account (CMA), a bank account dedicated to this type of investment aimed at protecting investor funds.

Under this system, investor funds are deposited into this account and are not transferred to the real estate tokenization company until the purchase process is completed, enhancing security and transparency.

Ready-to-use Properties

In its first phase, the project is limited to ready-to-use properties, and tokenisation of any property is permitted only through companies licensed by the VARA while DLD also reviews the fairness of the property’s pricing before listing it on the platform. The pilot phase includes two approved companies, Prypco and Ctrl Alt, with the possibility of opening up to more qualified companies to join this emerging market later.