In a groundbreaking move to revolutionize real estate transactions, the Dubai Land Department (DLD) has launched the pilot phase of its ‘Real Estate Tokenisation Project.’ This initiative, introduced under the Real Estate Innovation Initiative (REES), establishes DLD as the first real estate registration entity in the Middle East to integrate tokenisation into property title deeds.
The project, implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate, is a key step in strengthening Dubai’s position as a global leader in property technology. With real estate tokenisation projected to reach AED 60 billion by 2033—comprising 7% of Dubai’s total real estate transactions—the initiative marks a significant milestone in the sector’s digital transformation.
A Revolutionary Approach to Real Estate
His Excellency Eng. Marwan Ahmed Bin Ghalita, Director General of the Dubai Land Department, emphasized the transformative potential of real estate tokenisation:
“Amid rapid technological advancements and the increasing reliance on digital solutions, real estate tokenisation emerges as a revolutionary tool driving fundamental change in the 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 our 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.”
Expanding Investment Opportunities
As part of the project’s rollout, DLD organized a specialized workshop on ‘Real Estate Tokenisation,’ bringing together leading proptech companies and global experts in real estate asset tokenisation. The initiative aims to attract global technology firms while opening new investment opportunities for a wider range of investors. By enabling fractional property ownership, tokenisation allows multiple investors to co-own a single property, thereby diversifying property ownership and broadening market participation.
In addition to strengthening Dubai’s position as a regional and global hub for virtual assets, the project promotes investment awareness in virtual asset services and products, encourages real estate innovation, and supports the development of cutting-edge solutions in the sector. The initiative also seeks to attract virtual asset companies to establish their operations in Dubai while ensuring regulatory frameworks are in place to protect investors and stakeholders.
Enhancing Dubai’s Digital Economy
Real estate tokenisation 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. Unlike crowdfunding, which grants investors access to the real estate market through digital platforms, tokenisation offers a more structured and secure model for real estate investment.
Following the pilot phase, DLD will assess the outcomes and refine the project for full-scale implementation. The initiative aligns with the Dubai Economic Agenda D33, prioritizing digital solutions and reinforcing Dubai’s global competitiveness in the digital economy.
With this initiative, Dubai continues to set new standards in real estate innovation, solidifying its position as a leading hub for the world’s most dynamic and advanced property markets.
