Real Estate Tokenization Project Enables Co-Ownership of Properties

The Dubai Land Department (DLD) in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA) and Dubai Future Foundation (DFF) has launched the pilot phase of its ‘Real Estate Tokenization Project.’ The project aims to strengthen Dubai’s position in property technology and implement the Dubai Real Estate Sector Strategy 2033.

The Real Estate Tokenization Project aims to attract global technology firms and create new investment opportunities in Dubai real estate. Through the project, investors can co-own properties through tokenized assets, diversifying property ownership.

Notably, the DLD anticipates that the tokenization market for real estate would reach AED 60 billion by 2033, accounting for 7% of all real estate transactions in Dubai.

In detail, real estate tokenization refers to the transformation of assets into digital tokens using blockchain technology. Each asset is divided into shares based on an investor’s budget and financial strategy. As a result, investors can acquire portions of properties without the need for full purchases.

According to Eng. Marwan Ahmed Bin Ghalita, Director General of the Dubai Land Department, real estate tokenization has emerged as a revolutionary technology driving fundamental change in the real estate market.

“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.”

Following the pilot launch this year, the DLD will evaluate the project's outcomes and strive to refine it before full-scale implementation.

This project was introduced under the Real Estate Innovation Initiative ‘REES’ through SandBox Real Estate. Notably, it also supports the Dubai Economic Agenda D33 by prioritizing digital solutions to build a smart economy via knowledge, innovation, and future technologies.

In addition to increasing investment awareness in virtual asset services, the Real Estate Tokenization Project aims to solidify Dubai's standing as a regional and international center for virtual assets. It encourages innovation in the real estate industry and helps Dubai draw in investments and virtual asset firms.