Staff Report
Dubai, UAE
Dubai Land Department (DLD) has launched the pilot phase of the ‘Real Estate Tokenisation Project’, which aims to diversify property ownership by allowing multiple investors to co-own a single property through tokenised real estate assets. This initiative, introduced under the Real Estate Innovation Initiative ‘REES’, establishes DLD as the first real estate registration entity in the Middle East to implement tokenisation on property title deeds.
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. 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, tokenisation offers a distinct and more structured model for real estate investment.
Eng. Marwan Ahmed Bin Ghalita, Director General of Dubai Land Department, said, “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 Dubai Land Department’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.”
DLD anticipates that this groundbreaking initiative will drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dh60 billion by 2033, representing 7 percent of Dubai’s total real estate transactions. The project is being implemented in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) through SandBox Real Estate.
Ghalita added, “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 re al estate projects in Dubai.
“We are pleased to collaborate with partners from both the public and private sectors to advance the real estate industry’s digital ecosystem and enhance our operations’ efficiency and effectiveness. Following this year’s pilot launch, we will thoroughly assess the outcomes and leverage key insights to refine the project ahead of its full-scale implementation.”
The Real Estate Tokenisation Project is anticipated to attract global technology firms and open new investment opportunities for the investor market. It further 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. 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.
Ends
Also read: DLD to drive real estate innovation with launch of REACH Middle East
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