Investor Guide
Understand how tokenised real estate works, the structure behind it, the process to invest, key risks, and tax considerations.
Understanding Tokenised Real Estate
Tokenisation lets investors buy fractional, digital shares of real estate through regulated structures, without needing to purchase an entire property.
What is Real Estate Tokenisation?
Tokenisation converts a property into digital tokens representing fractional ownership. Each token holder owns a registered share of the property through a Special Purpose Vehicle (SPV) that holds the title and manages the asset.
Why Invest in Real Estate?
Income
Properties generate rental income that can be distributed regularly to token holders.
Capital Growth
Over time, well-chosen properties appreciate in value, increasing overall returns.
Inflation Protection
Real estate tends to rise with inflation, helping preserve long-term purchasing power.
Diversification
Real estate returns aren’t fully correlated with stocks or bonds.
Structure: How SPVs Work
An SPV (Special Purpose Vehicle) is a dedicated legal entity that holds a single property and routes income and ownership to investors.
🏢 What is an SPV?
An SPV is a dedicated legal entity created to own and manage a single property. It holds the title, collects rent, pays expenses, and distributes income to token holders.
Isolation
Risks and property assets are ring-fenced inside the SPV.
Clear Ownership
Tokens represent a clearly defined stake in the SPV’s equity.
Compliance
SPVs maintain accounts and are auditable for transparency.
Investment Flow
SPV Created
A dedicated company is incorporated for the project.
Property Purchased
The SPV buys and registers the property.
Tokens Issued
Tokens representing fractional equity are issued.
Income Distributed
Net income is distributed to token holders.
Your Rights as a Token Holder
Ownership
Tokens represent beneficial stake in the SPV.
Income
Receive your share of rental income.
Information
Access financials, rent rolls, and reports.
Transfer (Post Lock-in)
You may sell tokens after lock-in subject to rules.
Investing Step-by-Step
From onboarding to monitoring, here’s the complete investment journey.
The Investment Process
Before You Invest
Always verify these items:
✓ SPV registered as private company (check MCA.gov.in)
✓ Promoters have relevant experience
✓ Title clear & registered in SPV name
✓ RERA registration where applicable
✓ Financials ideally audited
✓ Occupancy certificate valid
✓ Insurance & reserves in place
✓ Review exit terms, fees, and buyback options
✓ Have agreements reviewed by a lawyer
Building a Portfolio
Diversification Strategy
📍 Geography: Spread across cities (Mumbai, Bengaluru, Hyderabad).
🏢 Asset Types: Offices, warehouses, co-living, etc.
⏳ Tenure: Mix short-term (5 yrs) + long-term (10 yrs).
💰 Allocation: Avoid >30–40% into a single deal.
Minimum Portfolio Approach
Aim for at least 3–5 projects with different tenants, cities, and risk levels.
Investment Risks
Real estate and tokenised investments are not risk-free. Only invest capital you can afford to lock away.
You Cannot Easily Exit
Your investment may be locked for several years with limited exit options.
- 3–5 year lock-in periods
- Low secondary-market liquidity
- Exit price negotiated between buyers/sellers
Treat this as long-term capital.
Property Values Can Fall
Real estate cycles mean values may decline.
- Economic slowdowns
- Neighbourhood deterioration
- Rising interest rates
Tenants May Fail or Leave
Income depends on stable tenants.
- Vacancies reduce returns
- Default or delayed rents
SPV Management Matters
Poor management can reduce returns sharply.
- Higher expenses
- Poor governance
- Conflicts of interest
Regulations May Change
New rules may affect taxation, compliance, or investment limits.
- New compliance rules
- Tax policy changes
SPV Debt Creates Additional Risk
If the SPV has debt, lenders are repaid before investors.
- Debt paid before investors
- Leverage magnifies losses
Tax Disclaimer
Tax rules change. Always consult a CA.
Taxes You Must Know
Income Tax on Rental Income
Classification: Usually taxed as “Income from House Property”.
Tax Rate: Based on your slab.
Deductions: Property tax, loan interest, standard deduction.
Filing: Must report in ITR.
When You Sell
Short-Term (< 2 years)
Added to income and taxed per slab.
Long-Term (≥ 2 years)
Taxed at special rates with indexation benefits.
Other Taxes & Fees
Stamp Duty
Payable based on state property registration rules.
GST
Usually not charged on rental income; may apply to platform fees.
TDS
TDS may be deducted before distributions.
Frequently Asked Questions
Short answers to common questions before investing.
What is real-estate tokenization? +
You receive rental income and potential capital appreciation based on the number of tokens you hold in the property’s SPV.
How do investors earn returns? +
You receive rental income and potential capital appreciation based on the number of tokens you hold in the property’s SPV.
Is my investment secure? +
Yes. Each asset is held by an SPV, funds move through escrow, and all ownership records are stored on a secure blockchain.
How can I exit my investment? +
You can sell your tokens through our secondary marketplace or during structured exit events such as property sale or buyback.
What is the minimum investment? +
Small ticket sizes allow you to start with a low entry amount, depending on the token price for each property.
Ready to Start Building Your Portfolio?
Review the guide carefully, speak with your advisor if needed, and allocate only long-term capital. When you are comfortable with the risks, explore live opportunities.