Source: Gulf news
Dubai: The trend of real estate tokenization is gaining momentum in Dubai, and with its recent announcement Ellington Properties has made a big splash. The developer has made a residential unit available for tokenized investment at its Kensington Waters project in Mohammed Bin Rashid City.
This means that rather than buying an entire property, investors can buy a fraction of the apartment by investing as little as AED 2,000. The investment is made through blockchain-based digital tokens that represent ownership in the property.
This system creates opportunities for people that want to invest in Dubai’s property market but perhaps do not have the money to buy a whole property. More investors can partake in Dubai’s developing property area due to fractional ownership. New investors, younger investors, can invest in property now.
In a statement, Ellington Properties said
“With investment entry points starting from Dh2,000, tokenized shares of the unit at the Kensington Waters offer broader, more inclusive access to Dubai’s thriving property market,”
Joseph Thomas, Co-founder of Ellington Properties, also emphasized the importance of this step for the industry: “We believe real estate tokenization is a major leap forward in reshaping how people interact with and invest in property.”
The Kensington Waters unit was delivered recently and is able to change over to this new investment format. Ellington’s move comes off the back of the positive response other developers have had, including DAMAC, which also experienced a positive response when it launched its first tokenized property back in February of this year.
With an increasing number of developers adopting this model, tokenization of real estate in Dubai is on a remarkable growth trajectory. indicate demand for digital tokens is and will continue to rise as property prices go up, which translates into possible profits for investors over time.
Tokenization, what is it?
Real estate tokenization is a process in which a property is digitally subdivided into shares on a blockchain network. Each token effectively acts as a portion of the property and can be bought, held, or sold in the same way a stock or bond can. This has the potential to make real estate investing much more accessible, quicker and flexible.
Synopsis:
- Investment: Kensington Waters by Ellington Properties
- Minimum investment: AED 2,000.
- Location: Mohammed Bin Rashid City
- Benefit: Low barrier of entry into the Dubai property market
With strong demand and government backing, Dubai will become a global leader in tokenized real estate investment very quickly.
