Dubai Launches Real Estate Tokenization Pilot: Projects $16 Billion Market

TLDR

• Dubai Land Department (DLD) launched pilot phase of ‘Real Estate Tokenisation Project’, becoming first in Middle East to implement blockchain for property title deeds
• Project developed with Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF)
• DLD forecasts tokenized real estate market to reach AED 60 billion ($16 billion) by 2033, representing 7% of Dubai’s total real estate transactions
• Tokenization allows fractional property ownership, enabling investors to own portions of properties without full purchase
• Project aims to attract global tech firms, diversify property ownership, and strengthen Dubai’s position as a regional and global hub for virtual assets

The Dubai Land Department (DLD) has begun the pilot phase of its ‘Real Estate Tokenisation Project.’ This makes DLD the first real estate registration entity in the Middle East to implement tokenization on property title deeds using blockchain technology.

The project was launched in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through Sandbox Dubai. This initiative is part of the Real Estate Innovation Initiative ‘REES’ and aligns with the Dubai Real Estate Sector Strategy 2033.

DLD expects this project to drive growth in the real estate tokenization sector. They forecast the market value will reach AED 60 billion ($16 billion) by 2033, which would represent 7% of Dubai’s total real estate transactions.

Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department, explained the value of the project. “By converting real estate assets into digital tokens recorded on blockchain technology, tokenization simplifies and enhances buying, selling, and investment processes.”

He added that the project aligns with DLD’s vision. They aim to achieve global leadership in real estate investment and leverage technology to develop new real estate products.

Key Goals

The Real Estate Tokenisation Project has several key goals. It seeks to attract global technology firms and open new investment paths for the investor market.

The project will allow multiple investors to co-own a single property through tokenized real estate assets. This system enables fractional property ownership based on an investor’s budget and financial strategy.

This approach differs from crowdfunding. While crowdfunding grants investors access with small investments through digital platforms, tokenization offers a more structured model for real estate investment.

Scott Thiel, co-founder and CEO of Tokinvest, called the initiative a “transformative moment” for the sector. “The initiative not only reinforces Dubai’s leadership in blockchain adoption but also paves the way for a more inclusive, liquid, and efficient real estate market,” he told Cointelegraph.

Thiel, who works at a VARA-regulated RWA platform, believes the project will expand Dubai’s real estate market. “Tokenisation is no longer a concept. It’s a reality that will open up Dubai’s real estate market to a global pool of investors like never before,” he said.

Dubai as Hub for Virtual Assets

The initiative also aims to strengthen Dubai’s position as a hub for virtual assets. This will enhance its competitiveness on both local and international levels.

The project promotes investment awareness in virtual asset services and products. It encourages real estate innovation and supports the development of cutting-edge solutions in the sector.

Furthermore, the initiative aims to attract investments and virtual asset companies to Dubai. The program ensures the necessary regulatory frameworks are in place to protect investors and stakeholders.

As part of the launch, DLD organized a workshop on ‘Real Estate Tokenization.’ This event brought together leading proptech companies, including top global firms that specialize in real estate asset tokenization.

Dubai Land Department continues its commitment to achieving the objectives of the Dubai Economic Agenda D33. This agenda prioritizes adopting digital solutions to shape a smart and advanced economy.