In a groundbreaking move to revolutionize the real estate sector, Dubai Land Department (DLD) has launched the pilot phase of the ‘Real Estate Tokenisation Project’, making it the first real estate registration entity in the Middle East to adopt this advanced technology.
Developed in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate, the initiative is a key milestone under DLD’s Real Estate Innovation Initiative (REES) and aligns with the Dubai Real Estate Sector Strategy 2033.
This initiative is set to digitize property transactions by converting real estate assets into blockchain-based digital tokens, significantly enhancing transparency, efficiency, and accessibility in real estate investment. With the real estate tokenisation market in Dubai projected to reach AED 60 billion by 2033, it is expected to account for 7% of the emirate’s total real estate transactions.
Revolutionizing the Real Estate Sector
His Excellency Eng. Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department, highlighted the transformative impact of this initiative:
“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 DLD’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.”
He further emphasized that this initiative is part of the recently launched REES program, which aims to attract leading proptech companies, drive transparency, and enable more investors to participate in Dubai’s booming real estate sector.
Key Objectives of the Tokenisation Project
The Real Estate Tokenisation Project is designed to:
- Expand investment opportunities by allowing multiple investors to co-own a single property through tokenised assets.
- Attract global technology firms to the UAE’s real estate market.
- Strengthen Dubai’s position as a leading hub for virtual assets and digital economy.
- Enhance transparency and governance, ensuring secure and efficient real estate transactions.
- Support innovation by integrating advanced blockchain solutions into Dubai’s property sector.
How Real Estate Tokenisation Works
Real estate tokenisation transforms property assets into fractional digital tokens using blockchain technology, allowing investors to acquire a portion of a property without fully purchasing it. Unlike traditional real estate crowdfunding, which facilitates investment through digital platforms, tokenisation provides a more structured and secure ownership model.
Each asset is divided into digital shares, giving investors flexible entry points based on their financial strategy and budget. This model is expected to open real estate investment to a broader audience, from individual investors to institutional stakeholders, enhancing market liquidity and accessibility.
Shaping the Future of Real Estate Investment
As part of Dubai’s broader vision to become a global leader in digital innovation, the Real Estate Tokenisation Project aligns with the Dubai Economic Agenda D33, which prioritizes adopting digital solutions for a smarter, more sustainable economy.
Following the pilot phase, DLD will conduct a comprehensive evaluation to refine the project before full-scale implementation. The initiative represents a major step toward making real estate investment more inclusive, efficient, and tech-driven, reinforcing Dubai’s position as a global leader in digital property transactions.
News Source: Cicero & Bernay
