A SLICE OF PROPERTY, SERVED RIGHT

Real estate security tokens, unlike utility tokens such as Bitcoin, would have many advantages for Dubai’s property market. Some of the benefits include:

Ownership of property

■ Tokens represent ownership in the underlying assets.

■ Real estate owners and investors can offer smaller investment tickets, expanding distribution to a broader group.

■ Tokens would help individuals build diversified portfolios with limited funds. Except for Real Estate Investment Trusts (REITs), diversification in real estate has always been limited to the wealthy and institutions.

Easier to buy and sell online

■ Real estate tokens make online purchase accessible from anywhere, on a 24-hour basis.

■ All transactions would be instant and recorded on immutable smart contracts. All rights and legal responsibilities are embedded directly onto the token along with an immutable record of ownership.

No legal tangles

■ Tokens offer automated compliance and governance.

■ Reduction of insurance, administrative and distribution costs, thanks to the high level of automation.

■ Rights and restrictions would be programmed in the assets and easier to valuate.

Transparent investment

■ Price discovery in the secondary market will become realtime, transparent, easily and cheaply available to all.

■ With real estate tokens, investors will benefit from automated, market driven future price appreciation and dividends (mostly in the form of rents).

■ Any additional special offers or promotions can be programmed into the smart contracts. Tokenisation does not require a middleman, making it more transparent.