Dubai is set to transform the real estate investment landscape with the launch of a groundbreaking initiative aimed at enabling fractional ownership of properties through tokenisation.
This innovative project allows multiple investors to co-own a single property by converting real estate assets into digital tokens, recorded on blockchain technology.
With tokenisation, Dubai is making property ownership more accessible and efficient, opening the door for a new wave of investors to participate in the city’s lucrative real estate market.
Dubai Real Estate Tokenisation Project
The pilot phase of the “Real Estate Tokenisation Project” has been launched by the Dubai Land Department (DLD), marking the first time a real estate registration entity in the Middle East has implemented tokenisation on property title deeds.
In collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF), the project is part of DLD’s ongoing efforts to position Dubai as a global leader in property technology under its Real Estate Innovation Initiative (REES).
What is property tokenisation
Real estate tokenisation is a process where properties are divided into digital tokens, allowing for fractional ownership.
This means investors can buy shares of a property, based on their financial strategy, rather than needing to purchase an entire property.
Each token represents a portion of the property, offering an affordable and structured investment model that differs from traditional crowdfunding. This new approach is set to democratise the real estate market, attracting both local and international investors who were previously excluded from large-scale property deals.
By enabling fractional ownership, Dubai is making it easier for individuals and investors of all sizes to enter the property market.
The project also offers enhanced transparency and efficiency, as blockchain technology records all transactions securely and transparently. This initiative is expected to significantly grow the real estate tokenisation sector, with a market value projected to reach Dhs 60 billion by 2033, representing 7% of Dubai’s total real estate transactions.
Eng. Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department, said: “Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the real estate sector.
“By converting real estate assets into digital tokens recorded on blockchain technology, tokenisation simplifies and enhances buying, selling, and investment processes. This aligns perfectly with Dubai Land Department’s vision to achieve global leadership in real estate investment, leverage technology to develop innovative real estate products, and foster an ecosystem that supports real estate innovation.”
REES’ Real Estate Innovation Initiative
He added: “This pioneering project is part of the recently launched ‘REES’ Real Estate Innovation Initiative, designed to attract diverse technology firms. It aligns with our strategy to unlock new opportunities for innovative real estate products, enhance property sector innovation, promote transparency and governance, and enable a wider pool of investors to participate in large-scale real estate projects in Dubai.”
“We are pleased to collaborate with partners from both the public and private sectors to advance the real estate industry’s digital ecosystem and enhance our operations’ efficiency and effectiveness. Following this year’s pilot launch, we will thoroughly assess the outcomes and leverage key insights to refine the project ahead of its full-scale implementation.”
This project is poised to not only transform the real estate sector but also strengthen Dubai’s position as a regional and global hub for virtual assets.
It promotes investment awareness in virtual asset services, encourages real estate innovation, and supports the development of cutting-edge solutions that attract investments and companies to establish operations in Dubai.
tanvir@dubainewsweek.com
