The Dubai Land Department (DLD) has recently introduced real estate tokenization in Dubai and is one of the very few places allowing it. Tokenization has been well received by the investors interested in the real estate of Dubai and is a step in line with Dubai’s Real Estate Sector Strategy 2033 aiming to double the sector’s GDP contribution and boost home ownership.
What is Real Estate Tokenization?
Real estate tokenization is a process that converts property ownership into digital tokens on the blockchain. Each digital token represents a share of the property which can be sold and purchased individually. The value of shares depends upon the investor’s budget and financial strategy, enabling fractional ownership. This allows investors to acquire a portion of the property without fully purchasing it.
The process reduces a barrier of capital and allows capital investment of as low as AED 2,000. After the purchase of the token, the land department issues a Property Token Ownership Certificate to the purchaser which reflects the accurate description of the property and the number of tokens owned.
The tokenization project has been developed by the DLD in collaboration with the Virtual Assets Regulatory Authority (VARA), the Central Bank of the UAE and the Dubai Future Foundation. The implementation of the project has been done through Prypco Mint which is licensed by VARA.
Advantages of Tokenization
Tokenization comes with several advantages which include the following:
1. Democratization of real estate investment by allowing fractional ownership,
2. Smaller tokens of the property will be easier to sell and purchase providing liquidity,
3. Although tokenization as of now only allows investment from individuals with UAE ID, tokenization will attract global investors in real estate in Dubai,
4. Tokenization has lower transaction charges, ensuring transparency, security as well as operational efficiency.
First Tokenized Project
The immense popularity of tokenization is reflected in the fact that the first tokenized project of Dubai sold out within a day of its launch in May 2025. The project attracted 224 investors with almost 70% of first-time investors in real estate markets of Dubai. This step will allow a lot of small investors to take advantage of the Dubai real estate market.
Conclusion
Tokenization is also the right step forward in Dubai’s objective of becoming a leader in blockchain and digital assets. Dubai’s real estate tokenization market is projected to reach 16.3 billion by 2033 and will account for a massive 7% of the emirate’s total property transactions.[5] Integration of blockchain technology with a robust regulatory framework, allows Dubai to create conditions for a more trustable, inclusive, and globally accessible real estate market.
For more information, you may contact:
Thomas Paoletti
Francesca Romana Valeri
Armando Coviello
