What are non fungible tokens in real estate?

They are digital tokens that represent rights linked to a property-holding SPV. The NFT maps to legal documents off-chain, while payouts can be automated on-chain. It is not the deed itself. Always verify the legal wrapper, trustee, and how the token connects to shares or units of the SPV.

How do income payouts from tokenized real estate work?

The SPV collects rent or interest, then routes funds through a payment agent to a smart contract. Holders of non fungible tokens receive pro-rata distributions after fees and reserves. Timing can be monthly or quarterly. Confirm bank flow proofs, auditor reports, and whether stablecoins or INR are used for final settlement.

What should Indian investors check before buying property NFTs?

Check issuer eligibility for Indian residents, compliance with SEBI, RERA, Companies Act, or IFSCA where relevant, and FEMA/LRS for overseas flows. Review SPV audits, title, insurance, fee stack, smart contract audits, and liquidity. Model post-tax yield and 1% TDS if classified as VDA, then start with a small allocation.

How are gains from property NFTs taxed in India?

If classified as virtual digital assets, gains are taxed at 30% plus applicable surcharge and cess, and a 1% TDS may apply on transfers. Loss set-off is restricted. Classification can vary by structure, so seek tax advice. Also check GST on fees and how overseas payouts interact with LRS rules.

Global Market Insights

February 15: Tokenized Real Estate Gains Traction After Mey Real Sell-Out

ByHuzaifa Zahoor February 15, 2026February 15, 2026

Non fungible tokens are moving from art to income. On February 15, Mey Real sold out 1,400 property-linked NFTs and half its public allocation within hours, signaling strong demand for tokenized real estate tied to real-world assets. Investors favored a legally structured, SPV-backed model that routes cash flows on-chain. For Indian investors, the draw is clear: lower entry sizes, transparent payouts, and potential liquidity. We explain how these tokens work, key risks, and what to check for compliance, costs, and taxes before participating.