Dubai is changing the way people invest in real estate. Along with popular options like buying a flat or investing in a REIT (Real Estate Investment Trust), a new method is gaining attention—property tokenisation. This method uses blockchain to let you own a small share of a real property, often starting from just AED 2,000.

In this article, we explain how property tokenisation compares with REITs, who can invest, how much is needed, and what it means for Indian buyers. We also highlight upcoming luxury projects like BNW La Perla, a waterfront apartment development in Al Marjan Island, that show where Dubai real estate is headed.

What Is a REIT and How Does It Work?

A REIT is a company that owns and manages many real estate properties like malls, offices, or apartments. Instead of buying a whole property, investors can buy units or shares in this company.

Key Points:

• You own part of a real estate fund, not a building.
• The company earns rental income and pays dividends to investors.
• REITs are listed on stock markets and are easy to buy and sell.
• Investment starts from just a few hundred dirhams.
• Managed by professionals. You don't have to deal with tenants or repairs.
• Regulated by UAE authorities like DFSA and SCA for safety.

What Is Property Tokenisation?

Property tokenisation means dividing a real property into many small digital tokens using blockchain. These tokens can be bought and sold online. Each token represents a small share of the property.

Key Points:

• You own a direct share of the actual building.
• Rental income and value growth are shared based on your ownership.
• Start with just AED 2,000 on platforms like Prypco Mint.
• Use digital wallets, smart contracts, and secure transactions.
• You can see and choose which properties to invest in.
• Regulation is improving with support from Dubai Land Department (DLD), VARA, and others.

Projects like BNW La Perla—a luxury apartment complex with 226 units—may benefit from tokenisation in the future, offering investors access to premium property without needing crores.

Key Differences Between Tokenisation and REITs Who Can Invest?
For Tokenisation:

Right now (mid-2025), only people with a UAE Emirates ID and age 18+ can invest through Prypco Mint.

Steps to Invest:

• Open an account on the platform.
• Complete KYC.
• Fund your account in AED.
• Pick a property and buy tokens.

For Indian Nationals:

• Must have a valid UAE Emirates ID.
• Must follow India's LRS (Liberalised Remittance Scheme).
• Can invest up to USD 250,000 per year overseas.
• Must report foreign assets in Indian tax filings if required.

For REITs:

Anyone can invest—there's no Emirates ID requirement.

Ways to Invest:

• Through a brokerage in Dubai.
• Via trading platforms (DFM, NASDAQ Dubai).
• Invest in public or private REITs, or through REIT-based mutual funds.

Indian investors can invest through their own brokers after following LRS and FEMA rules.

Pros and Cons: Which One Works for You? Tokenisation – Pros

• Own a real piece of a property.
• Low cost entry (AED 2,000).
• Rental income paid through smart contracts.
• Better control—pick which buildings you like.
• Blockchain-backed for more trust and less fraud.
• Great for future-facing projects like BNW La Perla.

Tokenisation – Cons

• Still new in the market.
• Not as liquid as stocks—yet.
• May require some tech know-how.
• Subject to cyber risks (though platforms like Prypco use strong security).

REITs – Pros

• Easy to buy and sell like stocks.
• Run by experts—you don't manage the property.
• Regular dividend payouts.
• Diversified—your money goes into many buildings.
• Works well for beginners.

REITs – Cons

• You don't own a real property, just a unit in a fund.
• Returns can depend on market swings.
• You can't choose what the REIT buys.
• Some fees apply to manage the fund.

What's Coming Next?

Dubai is supporting both REITs and tokenisation to give investors more choices. The goal is not to replace one with the other, but to let them work side-by-side.

• Tokenised real estate may reach 7% of Dubai's market by 2033 (AED 60 billion).
• Dubai Land Department and Crypto.com signed a deal in July 2025 to grow blockchain in real estate.
• First tokenised homes sold out in under 2 minutes, showing huge interest.
• More projects—possibly even BNW La Perla—may soon be available in tokenised form.

Final Thoughts

Dubai is becoming a hub for real estate innovation. Whether you prefer the ease of REITs or the direct ownership of tokenisation, both offer smart ways to invest.

For Indian investors, it's important to follow local rules, check if you qualify (especially for tokenisation), and understand your goals. If you want to start small, explore a real asset, and maybe even own a piece of a waterfront property like BNW La Perla, tokenisation might just be your door in.