The Dubai Land Department (DLD) launched today the pilot phase of the Real Estate Tokenization Project. This initiative, introduced under the Real Estate Innovation Initiative ‘REES,’ establishes the department as the first real estate registration entity in the Middle East to implement tokenization on property title deeds.
The Dubai Land Department expects this groundbreaking initiative to drive significant growth in the real estate tokenization sector, with its market value projected to reach AED60 billion by 2033, representing 7 percent of Dubai’s total real estate transactions.
“Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenization 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, tokenization simplifies and enhances buying, selling and investment processes,” stated Eng. Marwan Ahmed Bin Ghalita, director general of Dubai Land Department
Regional and global hub for virtual assets
The Dubai Land Department is implementing the Real Estate Tokenization Project in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate. As part of this initiative, the department organized a specialized workshop on ‘Real Estate Tokenization,’ bringing together leading proptech companies, including top global firms specializing in real estate asset tokenization.
The Real Estate Tokenization Project aims to attract global technology firms and open new investment opportunities for the investor market in Dubai. It also seeks to diversify property ownership by allowing multiple investors to co-own a single property through tokenized real estate assets.
Additionally, the project strengthens Dubai’s position as a regional and global hub for virtual assets, enhancing its competitiveness on both local and international levels. It also promotes investment awareness in virtual asset services and products, encourages real estate innovation, and supports the development of cutting-edge solutions in the sector.
Attracting investments and virtual asset companies to Dubai
Furthermore, the initiative contributes to attracting investments and virtual asset companies to establish their operations in Dubai while ensuring the necessary regulatory frameworks are in place to protect investors and stakeholders.
“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,” added Bin Ghalita.
Tokenization to enable fractional property ownership in Dubai
Real estate tokenization transforms real estate assets into digital tokens using blockchain technology. Each asset is divided into shares based on an investor’s budget and financial strategy, enabling fractional property ownership. This innovative approach marks a significant shift by allowing investors to acquire a portion of a property without fully purchasing it, leveraging advanced technology.
Unlike crowdfunding, which grants investors access to the real estate market with small investments through digital platforms, tokenization offers a distinct and more structured model for real estate investment.
Through the launch of the Real Estate Tokenization Project, the Dubai Land Department reiterated its commitment to achieving the objectives of the Dubai Economic Agenda D33, which prioritizes adopting digital solutions. Dubai is shaping a smart and advanced economy built on leadership, sustainability and growth driven by knowledge, innovation and future technologies. This reinforces the emirate’s global competitiveness and solidifies its position as a leading hub for the world’s most thriving digital economy.
