Published by:
Prateek Ahuja
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Key takeaways
Tokenized real estate comes with costs such as platform, DLD, tokenization and exit fees.
On PRYPCO Mint, entry fees include a 2% PRYPCO Mint fee, 2% DLD fee and 0.1% tokenization fee, capped at AED 850.
Ongoing management fees are already accounted for in the displayed rental yield, rather than charged separately.
Rental income is distributed monthly based on your ownership share.
Property tokens can be listed for sale after a three-month lock-in period, with a 1% exit fee charged upon a successful sale.
Investing in tokenized real estate in Dubai comes with certain costs. These can include platform fees, Dubai Land Department (DLD) fees, tokenization fees and an exit fee when you sell.
The exact charges vary by platform, so it’s important to understand what you’re paying, when you’re paying it and how those costs can affect your overall returns. If you're new to the concept, understanding property tokens vs traditional deeds is a good place to start.
Here’s a simple breakdown.
What fees are involved in tokenized real estate?
While the exact structure differs across platforms, there are a few common types of real estate tokenization fees to know.
Platform fees: A fee charged by the platform for facilitating your investment and providing access to the property.
DLD fees: In Dubai, fees may apply to register the transfer of ownership with the Dubai Land Department.
Tokenization fees: These cover the process of digitally representing fractional ownership of the property through tokens.
Property-related costs: The underlying asset is still a physical property, so costs such as management, maintenance and other property expenses will also be part of the costs
Exit fees: A fee may apply when you decide to sell your property tokens.
Before investing, look at the complete fee structure rather than just the minimum investment amount.
What does PRYPCO Mint charge?
On PRYPCO Mint, the same entry costs apply whether you invest in a newly listed property or purchase property tokens through the Marketplace.
Fee | Amount |
PRYPCO Mint fee | 2% |
DLD fee | 2% |
Tokenization fee | 0.1%, capped at AED 850 |
There are no hidden charges. Ongoing management fees are already accounted for in the rental yield displayed for the property, so they are not added as a separate charge on top of your investment.
If you later sell your property tokens through the PRYPCO Mint Marketplace, a 1% exit fee applies when the sale is successfully completed.
This makes it easier to see your costs upfront and understand how much you are investing before confirming your transaction.
How do tokenization fees compare with buying a full property?
The costs of buying an entire property and investing in tokenized real estate are structured differently.
For a traditional property purchase in Dubai, the DLD fee is 4% of the property's sale value. Other costs can also apply depending on the transaction, such as agent commissions, registration fees and mortgage-related costs.
With tokenized real estate, you purchase a fraction of the property rather than funding the entire asset.
Here’s a simple comparison:
Buying a full property | PRYPCO Mint | |
Ownership | Entire property | Fractional ownership |
Investment amount | Full property purchase price | From AED 1,000 for marketplace, from AED 2,000 for new listings. |
DLD fee | 4% of sale value | 2% of investment value |
Platform fee | Not applicable | 2% |
Any other fee | Brokerage charges, valuation for mortgage, etc. | Tokenization fee of 0.1%, capped at AED 850 |
Ongoing management fee | Managed by you or an appointed party, so will cost extra depending on arrangement | Accounted for in the displayed rental yield |
The key difference is scale. With tokenized real estate, the fees are based on the amount you invest rather than requiring you to purchase and manage an entire property.
How do rental income and returns work?
When you invest in tokenized real estate, your rental income is based on your share of the property.
For example, if you own 1% of a property's tokens, you are entitled to 1% of its distributable net rental income.
On PRYPCO Mint, rental income is distributed monthly and credited directly to your PRYPCO Mint Wallet in AED.
Your overall returns can come from two sources:
Rental income: Your share of the net rental income generated by the property.
Capital appreciation: A potential increase in the property's value over time.
The rental yield displayed for each property already accounts for ongoing management fees, helping you understand the projected rental return after those costs.
You can track your ROI in the PRYPCO Mint portfolio dashboard, including your rental income and individual property performance.
Returns are not guaranteed. Rental income and overall returns depend on factors including occupancy, property expenses and market conditions, and property values can rise or fall.
What would the fees look like on an AED 10,000 investment?
Here’s a simple example.
Suppose you make an AED 10,000 real estate investment on PRYPCO Mint.
Your entry costs would be:
Cost | Amount |
Investment | AED 10,000 |
PRYPCO Mint fee (2%) | AED 200 |
DLD fee (2%) | AED 200 |
Tokenization fee (0.1%) | AED 10 |
Total | AED 10,410 |
So, you would pay AED 10,410 in total for an AED 10,000 investment.
From there, your actual returns would depend on the rental income generated by the property and any change in its value.
If you eventually decide to sell your tokens through the Marketplace, the 1% exit fee applies once the sale is successfully completed.
What happens when you want to sell your property tokens?
PRYPCO Mint investors can buy and sell property tokens through the Marketplace.
There is a three-month lock-in period before your tokens can be listed for sale. After that, you can set your resale price within ±15% of the DLD smart valuation.
The 1% exit fee is charged only when your tokens are successfully sold.
This gives existing investors a way to exit their investment while allowing other investors to purchase property tokens that are already available on the platform.
For a step-by-step explanation, read how to sell your property tokens.
Frequently Asked Questions (FAQs)
What fees do you pay when investing in tokenized real estate?
Fees vary by platform and can include platform, DLD, tokenization, property-related and exit fees.
On PRYPCO Mint, entry costs include a 2% PRYPCO Mint fee, 2% DLD transfer fee and 0.1% tokenization fee, capped at AED 850.
Is tokenized real estate cheaper than buying a full property?
The main difference is the amount of capital required. Instead of buying an entire property, tokenization allows you to purchase fractional ownership.
On PRYPCO Mint, you can start investing in tokenized real estate from AED 1,000 on the marketplace and AED 2,000 for a new property.
Are there ongoing management fees on PRYPCO Mint?
Ongoing management fees are accounted for in the rental yield displayed for each property rather than being added as a separate charge on top of your investment.
How often is rental income paid on tokenized property?
On PRYPCO Mint, rental income is distributed monthly and credited directly to your PRYPCO Mint Wallet in AED based on your ownership share.
What happens if I want to sell my property tokens?
After the three-month lock-in period, you can list your tokens on the PRYPCO Mint Marketplace within ±15% of the DLD smart valuation. A 1% exit fee applies when the tokens are successfully sold.
Are returns from tokenized real estate guaranteed?
No. Returns are not guaranteed. Rental income depends on factors such as occupancy, property expenses and market conditions, while property values can increase or decrease.
Know your costs before you invest
Tokenization gives investors a way to access Dubai real estate without purchasing an entire property. But just like any property investment, there are costs involved.
Understanding those costs upfront makes it easier to evaluate an opportunity based on what matters: how much you’re investing, what you’re paying and what you could potentially earn.
With PRYPCO Mint, the applicable fees and projected returns are shown before you invest, so you can review the numbers before making your decision.
Disclaimer: PRYPCO Mint is licensed by the Virtual Assets Regulatory Authority. This content is not an offer or solicitation to buy, sell, or hold virtual assets. Virtual assets are subject to market fluctuations, and investors may lose the full value of their investment.
