MAG Group introduces tokenized real estate investment in Dubai

[myself]

MAG group to tokenize $500 millions worth of real estate with the Mantra DAO crypto project. A new (hopefully easy) way to invest in real estate in Dubai.

https://www.coindesk.com/business/2024/07/03/mantra-to-tokenize-500m-real-estate-assets-for-uae-builder-mag-group/

 

[manukahoney]

Easy getting in, not so easy cashing out.
Think of it as a fractional ownership, quite notorious scheme to sell the dream of owning property to non-experiences investors.

Probably they will use an SPV that owns the property rather than offering the ownership directly (ownership details must be in the official register). So you actually get tokenised shares of a company, which is basically a REIT, but with much lower liquidity, obscure voting rights and uncontrolled managing fees.

 

[Martin Everson]

Sounds like another project that may just offer exposure to the price and returns of the real estate but you never actually own any of it. I would need to see the details which seem thin on the ground.

Would be more interesting if they worked with government to recognize that i.e AED 2m purchase of tokens allows you to obtain the 10yr Golden Visa residency permit as if you invested AED 2m directly in real estate. It sounds interesting however people can get 8% yields in crypto without all the complexity they are bringing.

 

[CyprusLawyer101]

Ptobably the only benefit of such schemes is for small investors, who wish to place small amounts like 10kusd and own real estate in the country. If there is some rental yield which actually becomes payable thrn it may be worth it for some. LIquiditiy for on-selling the investment would be low therefore making the investment difficult to exit.

 

[BeyondBorders]

Ptobably the only benefit of such schemes is for small investors, who wish to place small amounts like 10kusd and own real estate in the country. If there is some rental yield which actually becomes payable thrn it may be worth it for some. LIquiditiy for on-selling the investment would be low therefore making the investment difficult to exit.

I must correct: The only party benefiting from all these schemes are the managers behind the schemes.

Admin and Management Fee usually eat extremely into profitability, I have seen single unit apartments administered by SPVs that require accounting, and sometimes even auditing. Managers take their fee home too.

It does not make sense, especially in a Jurisdiction like the UAE, where buying actual property with crypto does not cause an issue (sometimes the only dependency is a terrible, or shall I say incompetent, agent).

Theres another company in the market for quite a while, same issues as described above: Stake – A smarter way to invest in real estate