Dubai Land Department Pilots Real Estate Tokenization Project

In a bold move to reinforce Dubai’s status as a global leader in property technology, the Dubai Land Department (DLD) has initiated the pilot phase of the Real Estate Tokenisation Project. This initiative aligns with the Dubai Real Estate Sector Strategy 2033 and positions DLD as the first real estate registration entity in the Middle East to integrate blockchain-based tokenisation into property title deeds. The project is being developed in collaboration with the Dubai Virtual Assets Regulatory Authority (VARA), Dubai Future Foundation (DFF), and SandBox Real Estate.

Market Growth and Economic Impact

DLD forecasts that the introduction of real estate tokenisation will significantly expand Dubai’s digital property investment landscape. The sector’s market value is projected to reach AED 60 billion by 2033, representing 7% of Dubai’s total real estate transactions. This initiative is expected to attract both institutional and retail investors, driving innovation and economic growth in the real estate sector.

His Excellency 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.”

He 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 real 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.”

Industry Engagement and Investment Opportunities

To facilitate the successful adoption of tokenised real estate, DLD recently hosted a specialised ‘Real Estate Tokenisation’ workshop, bringing together global leaders in property technology and digital asset management. The project aims to diversify property ownership by enabling multiple investors to co-own a single property through blockchain-backed tokens. This model opens new investment avenues, making Dubai an attractive hub for international tech firms and real estate investors.

Enhancing Dubai’s Position in the Virtual Asset Space

Beyond its impact on real estate, the initiative solidifies Dubai’s reputation as a global centre for virtual assets and digital finance. It also supports investment education in blockchain-based asset ownership while ensuring regulatory frameworks are in place to protect investors and stakeholders. By fostering technological advancements in the sector, the initiative encourages the growth of virtual asset companies within Dubai’s thriving digital economy.

Understanding Real Estate Tokenisation

Real estate tokenisation leverages blockchain technology to convert property assets into digital tokens, which are then divided into shares. This enables fractional property ownership, allowing investors to buy portions of a property based on their financial strategy—without requiring full ownership. Unlike crowdfunding, which offers access to real estate through small digital investments, tokenisation provides a more structured and transparent model for property investment.

Driving Dubai’s Digital Economy Vision

Through this initiative, DLD continues to advance the goals of the Dubai Economic Agenda D33, which prioritizes digital transformation and smart economic growth. By integrating cutting-edge technologies such as blockchain and virtual assets, Dubai is reinforcing its global competitiveness and positioning itself as a leading hub for the world’s most progressive digital economy.