Dubai has taken a bold step toward transforming its real estate sector by launching a pilot project for real estate tokenisation.
The initiative is spearheaded by the Dubai Land Department (DLD) in partnership with the Virtual Assets Regulatory Authority (VARA) and the Dubai Future Foundation (DFF). Together, they aim to harness blockchain technology to simplify and enhance the efficiency of property transactions.
This makes Dubai the Middle East’s first real estate registration authority to adopt such technology.
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A game-changer for Dubai property transactions
The project involves converting real estate assets into digital tokens recorded on the blockchain, simplifying the process of buying, selling, and investing in properties. Marwan Ahmed Bin Ghalita, Director-General of the DLD, emphasised the initiative’s transformative potential, stating, “By converting real estate assets into digital tokens, tokenization simplifies and enhances buying, selling, and investment processes.”
This innovation is expected to make property investments more accessible and efficient, attracting a broader range of investors.
The DLD projects that by 2033, tokenised real estate transactions could reach AED 60 billion ($16 billion), accounting for about 7 percent of the region’s total real estate market. As a result, this growth aligns with Dubai’s broader strategy to position itself as a global leader in property technology and innovation.
On the other hand, it will introduce fractional property ownership, allowing multiple investors to co-own a single property through tokenised assets. This approach lowers entry barriers and increases market liquidity, making real estate investments more inclusive. “Tokenization enables fractional ownership, allowing investors to acquire a portion of a property without fully purchasing it,” Bin Ghalita explained.
The pilot phase will be closely monitored, with plans to scale up the project based on its success. This initiative is part of Dubai’s Economic Agenda D33, which prioritises digital innovation and sustainability.
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A vision for the future
Dubai’s real estate tokenisation project reflects its commitment to embracing cutting-edge technology and fostering a transparent, efficient property market.
As Bin Ghalita noted, “This initiative aligns with our vision to achieve global leadership in real estate investment and innovation.” With this move, Dubai is setting a new standard for the future of real estate transactions worldwide.
However, the government wants to boost investment, enhance liquidity, ensure transparency, and position the city as a global leader in property technology (prop-tech).